© Reuters. FILE PHOTO: The logo for Valero Energy Corporation is shown at a Valero gas station in Encinitas, California, U.S., May 2, 2016. REUTERS/Mike Blake
(Reuters) -Refiner Valero Energy Corp (NYSE:) reported a bumper third-quarter profit that zoomed past Wall Street estimates on Tuesday, as margins were boosted by demand for fuel and refined products.
U.S. refineries have operated this year at record levels due to plant closings, quick recovery of domestic demand and strong export demand over Russia’s invasion of Ukraine.
San Antonio, Texas-based Valero’s total refinery throughput volumes averaged 3 million barrels per day (bpd) in the quarter, which was 141,000 bpd higher than last year.
Refinery utilization rate – the amount of oil processed compared to a plant’s rated capacity – was 95% in the reported quarter, compared with last year’s 91%.
“Refining fundamentals remain strong as product demand through our system has surpassed 2019 levels, while global product supply remains constrained due to capacity reductions and high prices in Europe are setting a higher floor on margins,” Chief Executive Officer Joe Gorder said in a statement.
Valero, the first major U.S. refiner to post results for the quarter, said refining margin more than doubled to $5.90 billion, from a year earlier and added it continues to maximize refining utilization.
Net income attributable to the company’s stockholders was $2.82 billion, or $7.19 per share, for the three months ended September 30, compared with $463 million, or $1.13 per share, a year earlier.
Excluding items, Valero posted a profit of $7.14 per share, beating analysts’ average estimate of $6.85 per share, according to Refinitiv.
The bullish results could bode well when other major refiners, including Marathon Petroleum (NYSE:) and Phillips 66 (NYSE:), report in coming weeks.
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