Valero Energy reports second-quarter loss on falling demand
29 Jul 2009
The largest independent US refiner, Valero Energy Corporation, a Fortune 500 company, has reported a second-quarter loss of $254million, as demand for refined products fell and refining margins weakened.
The company recorded a net loss of $254 million, or $0.48 per share, for the second quarter of 2009, compared to a net income of $734 million, or $1.37 per share a year ago.
The net income for the six months ended June 30, 2009 was $55 million, or $0.11 per share, compared to net income of $995 million, or $1.85 per share for the same period a year ago.
The operating loss was $317 million, versus $1.2 billion of operating income, the same quarter a year ago, which the company attributed to lower diesel and jet fuel margins and lower sour crude oil differentials.
The benchmark Gulf Coast ultra-low-sulfur diesel margins versus West Texas Intermediate (WTI) crude oil decreased 79 per cent from $28.85 per barrel in the second quarter of 2008 to $6.16 per barrel in the second quarter of 2009. The Maya heavy sour crude oil differential to WTI decreased 78 per cent from $20.99 per barrel in the second quarter of 2008 to $4.57 per barrel in the second quarter of 2009.
Revenue fell 51 per cent to 17.9 billion dollars compared to the same quarter a year ago.