23 July 2013 13:57 [Source: ICIS news]
The decline in margins was caused by significantly lower discounts for heavy sour and light crude oil, as well as higher natural gas costs, the company said.
In addition, Valero incurred higher costs in complying with the US federal Renewable Fuel Standard, it said.
Valero’s operating income for the three months ended 30 June was down to $808m, from $1.36bn in the 2012 second quarter. Operating revenues were almost unchanged at $34.0bn, compared with $34.7bn in the 2012 second quarter.
Second-quarter 2013 refining throughput volumes averaged 2.6m bbl/day, a decrease of 52,000 bbl/day from the second quarter of 2012.
Valero had “significant turnaround and planned maintenance activity” at its refineries in
Valero's ethanol segment reported operating income of $95m in the second quarter of 2013 versus $5m in the second quarter of 2012. The increase in ethanol operating income was due to a higher gross margin per gallon and higher production volumes, the company said.
"Valero performed well financially given the margin environment and maintenance activities," said CEO Bill Klesse.
"We also returned $364m in cash to our stockholders through dividends and stock buybacks in the second quarter,” Klesse added.
($1 = €0.76)
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|
Asian Chemical Connections