Valero Energy (VLO) Crushes Estimates in Q1, Expects Refining Margins to Remain Strong

Valero Energy Corporation (NYSE:VLO) is included among the 10 Energy Stocks that Crushed Earnings Estimates in the First Quarter.

Valero Energy (VLO) Crushes Estimates in Q1, Expects Refining Margins to Remain Strong

Valero Energy Corporation (NYSE:VLO) is the world’s premier independent petroleum refiner and a leading producer of low-carbon transportation fuels.

Valero Energy Corporation (NYSE:VLO) reported an adjusted profit of $4.22 per share in its Q1 report on April 30, topping expectations by $1.06 on the back of strength in its refining segment, margins, and throughput ‌volumes. Revenue for the quarter also surged by 7% YoY to $32.4 billion and beat estimates by over $2.5 billion.

Valero Energy Corporation (NYSE:VLO)’s refining segment delivered an operating income of $1.8 billion in Q1, compared to an operating loss of $530 million in the same period last year. The company’s margin per barrel of throughput was $14.90 during the quarter, up from $9.78 in the year-ago period, while average throughput volumes also surged by 3.6% to 2.9 million barrels per day.

Valero Energy Corporation (NYSE:VLO) expects the $230 million St. Charles FCC optimization project to begin operations in the third quarter of this year. The company expects refining margins to remain strong for six months to a year even after ​the waterway of Hormuz reopens, since that will be the amount of time required to restore refined product inventories ​to pre-war levels.

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