By Rob Curran
Valero Energy posted a 7% drop in third-quarter earnings as refining margins retreated from 2022 highs.
The San Antonio, Texas, oil refiner logged net income of $2.6 billion, or $7.49 a share, for the quarter ended in September, down from $2.8 billion, or $7.19 a share, a year earlier. The count of shares outstanding was higher at the end of the prior-year period. On an adjusted basis, Valero reported earnings of $7.49 a share, slightly above the average analyst target of $7.47 a share.
Third-quarter sales fell 14% to $38.4 billion, compared to the average analyst estimate of $38.46 billion, as tallied by FactSet.
Valero’s refining unit said operating income fell 11% to $3.4 billion.
Refining margin, one measure of the difference between the costs of acquiring feedstock and the price realized on refined products sold, fell 8.2% to $5.4 billion.
Gasoline prices have come down this year from 2022 peaks in most markets.
Valero made capital investments of $394 million during the three-month period.
Write to Rob Curran at [email protected]
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