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MOSCOW (MRC) -- Independent US refiner
Valero Energy Corp reported a smaller-than-expected quarterly loss on Thursday,
adding that it saw “a rapid recovery” in demand for its products as the quarter
progressed, reported Reuters.
The
results, which kicked off US refining earnings, failed to lift investor
sentiment as shares of the company and other refiners fell 3% to 7%, dragged
down by oil prices that plummeted on concerns fuel demand recovery could be
capped by a resurgence in coronavirus infections.
Global fuel consumption
in the second quarter recovered from record lows in March and April, as
countries started emerging from lockdowns.
“While the impact of the
pandemic and the ensuing global economic downturn so far this year has been
significant, we saw a rapid recovery in demand for refined products as we moved
through the quarter,” Valero’s Chief Executive Officer Joe Gorder
said.
Valero forecast current-quarter throughput, or the volume of crude
processed by its refineries, to be about 2.43 million barrels per day (bpd),
down more than 18% from a year earlier.
Throughput for the second quarter
dropped 22% to 2.3 million bpd, while refining margins fell 58% to USD1.08
billion.
Credit Suisse analyst Manav Gupta said the results were
better-tha-feared, helped by Valero’s renewable diesel and ethanol segments. He
added refining equities would move higher or lower, depending upon whether
Texas, Florida and Arizona can successfully avoid another virus-led
shutdown.
On an adjusted basis, Valero lost USD1.25 per share in the
reported quarter, compared to analysts’ estimates of a loss of USD1.41 per share
loss, according to Refinitiv IBES.
The San Antonio, Texas-based company
also recorded a gain of USD1.8 billion in the quarter related to inventory
valuation.
As MRC reported
earlier, in June 2020, Valero Energy Corp’s Memphis, Tennessee, crude oil
refinery was operating at two-thirds of its 180,000 barrel-per-day (bpd)
capacity because of low demand in the COVID-19 pandemic. The Memphis refinery
cut production by as much as 50% in early April and has been raising production
gradually since then.
Ethylene and propylene are feedstocks for producing
polyethylene (PE) and polypropylene (PP).
According to MRC's DataScope report,
PE imports to Russia dropped in January-June 2020 by 7% year on year to 328,000
tonnes. High density polyethylene (HDPE) accounted for the main decrease in
imports. At the same time, PP imports into Russia rose in the first six months
of 2020 by 21% year on year to 105,300 tonnes. Propylene homopolymer
(homopolymer PP) accounted for the main increase in imports. |
