MOSCOW (MRC) -- US refiner Valero Energy Corp. reported a quarterly profit that beat analysts' reduced estimates, even as the company's refining margin continued to be gutted by a spike in gasoline and distillate inventories, said Hydrocarbonprocessing.
Like other independent refiners, Valero has been struggling with record supplies of gasoline and diesel products in the US that has weighed on prices for refined products.
Refining throughput margin fell to USD8.93/bbl in the second quarter ended June 30 from USD13.71/bbl a year earlier, Valero said.
Analysts have in recent weeks slashed second-quarter estimates of refiners, with several predicting that refiners may have to take more drastic action to protect margins and force a drawdown of stockpiles.
Valero also said biofuel blending costs more than tripled to USD173 M in the latest quarter, primarily due to the purchase of biofuels compliance credits known as Renewable Identification Numbers (RIN).
The company said it continues to expect such costs to be in the range of USD750 M to USD850 M this year.
The company's compliance credit costs were USD440 M in 2015, according to filings reviewed by Reuters.
As MRC informed earlier, Valero Energy Corp.’s previously-announced USD700 million methanol plant, planned at its existing St. Charles Parish, LA, facility, was shelved indefinitely in mid-March 2016.
MRC