Valero Energy has reported income from continuing operations of $848 million, or $1.34 per share, for the third quarter of 2007, compared to $1.6 billion, or $2.48 per share, in the same period of 2006.
The third quarter income from discontinued operations of $426 million, or $0.75 per share, represents the company’s after-tax gain on the sale of its Lima, Ohio refinery, which was effective July 1, 2007. Income from discontinued operations for periods prior to the third quarter 2007 reflects the operating results of the Lima, Ohio refinery prior to its sale.
For the nine months ended September 30, 2007, income from continuing operations was $4 billion, or $6.66 per share, compared to the company’s income from continuing operations of $4.2 billion, or $6.61 per share, for the same period last year.
Bill Klesse, chairman of the board and CEO, said: So far in the fourth quarter, the margin environment has been difficult as prices for refined products have failed to keep pace with the increase in feedstock costs.
In particular, the seasonal supply and demand patterns and higher feedstock prices have squeezed gasoline margins. However, industry fundamentals are intact with gasoline inventories near five-year lows and diesel stocks considerably below last year’s levels. And, unlike the third quarter, we’re seeing more favorable discounts for the sour and heavy feedstocks that Valero’s complex refining system processes.