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Valero Energy reported Q4 margins fall

February 02/2012

(nasdaq) -- Valero Energy Corp. (VLO) swung to a fourth-quarter profit on an inventory gain from a year-earlier quarter that included losses from discontinued operations. Margins fell, however, on lower refining profit.

Valero, the largest independent oil refining company in the U.S., has reported increased revenue in recent quarters as global distillate demand grows despite continuing weakness in the U.S. gasoline market. Gasoline exports to Latin America, due to supply problems there, have also played a part.

The company warned earlier this month that weak margins on refined products, particularly for gasoline and petrochemical feedstocks, would hurt its fourth-quarter results. Refining margins were also damped by reduced discounts for heavy sour feedstocks and the narrowing of prices for West Texas Intermediate versus Brent crude oils, resulting in higher-priced crude oils flowing through the system.

Valero reported a profit of USD 45 million, or 8 cents a share, compared with a loss of USD 438 million, or 77 cents, a year earlier. Revenue jumped 56% to USD 34.7 billion. Operating margin fell to 0.5% from 1.7%.

At its refining business, operating earnings dropped 91% as the throughput margin per barrel fell to USD 5.46 from USD 7.30 a year earlier. Its smaller U.S. retail operations saw its operating profit rise 36%.

Author:Anna Larionova
Tags:oil, gazopererabotka.
Category:General News
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