(Reuters) – Refiner Valero Energy posted lower second-quarter profit on Thursday, hurt by a slump in margins due to a tepid summer driving season and a rise in global refining capacity.
Refiners ramped up their processing capacity to 93.5% in the second quarter, compared to 91% in the prior-year period, on hopes of an uptick in demand that did not materialize, according to the Energy Information Administration.
Energy majors BP and Exxon Mobil had earlier said weak fuel prices would have a negative impact on their earnings in the reported quarter.
Valero said its refining margins stood at $3.05 billion in the second quarter, compared with $4.22 billion last year.
The San Antonio, Texas-based company reported net income of $880 million, or $2.71 per share, for the three months ended June 30, below $1.94 billion, or $5.40 per share, last year.
(Reporting by Sourasis Bose in Bengaluru; Editing by Pooja Desai)
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