US Valero swings to $432m Q1 loss on charge for Aruba refinery

01 May 2012 13:55  [Source: ICIS news]

HOUSTON (ICIS)--Valero reported a first-quarter net loss of $432m (€328m), compared with a net income of $98m in the same period a year ago, mainly because of an asset impairment charge for its Aruba refinery, as well as weaker operating income, the US-based refiner said on Tuesday.

Valero said that results for the three months ended 31 March included a $605m asset impairment loss that was primarily related to the shutdown of its 235,000 barrel/day refinery in Aruba.

Operating income fell because of lower discounts on crude oils and feedstocks, and because of lower margins for other products such as petrochemical feedstocks and petroleum coke. These negatives were only partially offset by higher margins for gasoline and diesel, Valero said. 

Valero’s first-quarter refining throughput rose by 21% year on year to 2,555,000 bbl/day, mainly because of the acquistion of refineries in the UK and the US.

The company’s first-quarter revenue increased by 34% year on year to $35.2bn.

During the first quarter of 2012, Valero undertook significant turnaround and maintenance activity, including plant-wide shutdowns at two US refineries.

"Given the high level of turnarounds and maintenance in the first quarter, we performed well and continued to execute our strategy," said CEO Bill Klesse.

Klesse added that rising export volumes helped Valero offset weak domestic demand.

($1 = €0.76)

By: Stefan Baumgarten
+1 713 525 2653

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