29 January 2014 14:33 [Source: ICIS news]
LONDON (ICIS)--US-based Valero Energy Corporation reported fourth-quarter 2013 net income of $1.3bn, an year-on-year increase of 28%, as a result of a $325m non-taxable gain relating to the spin-off of its retail division CST Brands, the company said on Wednesday.
Excluding these gains, Valero's net income stood at $963m, a 5% decline compared with $1bn in Q4 2012, on the back of a decrease in its refining operations following a rise in depreciation and amortisation expenses, an increase in operating expenses due largely to higher energy costs, and a fall in throughput margin, the company said.
Fourth-quarter sales slipped from $34.7bn to $34.4bn, a 0.8% decrease, while earnings per share (EPS) stood at $2.38, a 31% increase compared with the same period in 2012. Operating income over the quarter remained stable year on year at $1.6bn.
Valero experienced a decreased in the refining and the spun-off retail segments, which were offset by an increase in operating income in its ethanol segment, the company said.
Valero's ethanol segment’s operating income stood at $269m in Q4 2013 compared to just $12m in the fourth quarter of 2012 on the back of higher gross margins per gallon caused by a decrease in corn prices and low industry ethanol inventories.
"Our refineries and ethanol plants ran well and at a high utilistion rate in the fourth quarter. In refining, we took advantage of favorable crude oil discounts at most locations, while our ethanol business enjoyed high margins and set a record high for quarterly and annual operating income," said Bill Klesse, Valero’s chairman and CEO.
US-based Valero reported a 2013 full-year net income of $2.7bn, up 31% compared with 2012, while sales slipped 1% to $138bn.
The San Antonio, Texas-based fuel producer reported diluted earnings per share (EPS) in 2013 at $4.97, a rise of 33% year on year.
Klesse said the company will focus on strategic investments in 2014 in order to increase its capability to process light crude oil, increase its distillates yield, and convert more natural gas into liquids.
“While making these investments, we continue to return cash to stockholders by increasing our regular dividend and buying our stock. We believe that, as we continue to lower costs and improve reliability, our stockholder value will increase,” he said.
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