Valero swings to Q1 net income of $654m on refining throughput margins

30 April 2013 14:27  [Source: ICIS news]

HOUSTON (ICIS)--Valero reported 2013 first-quarter net income of $654m (€497m), compared with a loss of $432m in the same period a year ago, mainly because of higher refining throughput margins, the US-based refiner said on Tuesday.

Throughput margins increased in each of Valero’s operation regions, except the US West Coast.

The increased margins were mainly due to an increase in margins for diesel and jet fuel and wider discounts on crude oil and feedstocks, the company said.

"Despite a heavy turnaround and maintenance workload, our refineries had good performance that was aided by wider diesel margins and crude oil discounts plus contribution from our new hydrocracker at the Port Arthur refinery [in Texas],” CEO Bill Klesse said.

Valero’s operating revenues for the three months ended 31 March were $33.5bn, compared with $35.2bn in the same quarter a year ago.

Valero’s first-quarter 2013 refining throughput volumes averaged 2.6m bbl/day, an increase of 11,000 bbl/day from the first quarter of 2012.

During the first quarter, Valero had significant turnarounds and maintenance at refineries on the US Gulf Coast, including Texas City, Corpus Christi, and Port Arthur, and at its Benicia and Wilmington refineries on US West Coast. 

Turnaround activity continues in the second quarter of 2013 with work at Valero’s Meraux and McKee refineries in the US, Valero said. In addition, Valero has planned a turnaround for about two months at its refinery in Quebec City.

Valero added that in mid-April the Quebec City refinery successfully processed its first cargo of Eagle Ford crude oil, which was shipped from Texas using a lower-cost, foreign-flagged vessel.

Valero also said that it continues to maintain its refining assets in Aruba to allow them to be restarted in the future. Valero’s 2012 first quarter included a $595m write-down for the Aruba refinery where operations were suspended last year.

($1 = €0.76)

By: Stefan Baumgarten
+1 713 525 2653

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