Valero Energy reports lower quarterly profit on weak refining margins

(Reuters) -Refiner Valero Energy (NYSE:VLO ) posted a slump in third-quarter profit on Thursday, hurt by falling margins due to a slowdown in fuel demand and refinery maintenance.

The San Antonio, Texas-based refiner reported net income attributable to stockholders of $364 million, or $1.14 per share, for the three months ended Sept. 30, below $2.6 billion, or $7.49 per share, last year in the same quarter.

Refiners globally have seen a drop in profitability on soft consumer and industrial demand, especially in China, because of slowing economic growth and the rising penetration of electric vehicles.

U.S. refinery margins, measured by the 3-2-1 crack spread, dipped to $14.28 in mid-September, the lowest since early 2021, on lackluster fuel demand.

Energy majors like Exxon Mobil (NYSE:XOM ), BP (NYSE:BP ) and Shell (LON:SHEL ) had said earlier this month that they expected weaker refining margins to weigh on their earnings in the third quarter.



The refining segment reported operating income of $565 million for the third quarter, compared with $3.4 billion a year earlier.

The company's refining margins stood at $2.41 billion in the quarter, compared with $5.41 billion last year.

Source: Investing.com