Valero Energy Announces Q2 Results

Valero Energy Corporation VLO today reported income from continuing operations of $530 million, or $0.93 per share, for the second quarter of 2010, compared to a loss from continuing operations of $191 million, or $0.36 per share, for the second quarter of 2009. For the six months ended June 30, 2010, income from continuing operations was $429 million, or $0.76 per share, compared to income from continuing operations of $173 million, or $0.33 per share for the six months ended June 30, 2009. Operating income in the second quarter of 2010 was $921 million, versus an operating loss of $192 million in the second quarter of 2009. The $1.1 billion increase in operating income was mainly due to higher margins for diesel and many of the company’s secondary products, such as petrochemicals, asphalt, and lube oils, as well as better discounts for low-quality feedstocks. “It’s great to be profitable again,” said Valero Chairman and CEO Bill Klesse. “Our second quarter results really showed the earnings power of our assets. Our system of high-conversion refineries was able to take advantage of higher margins on products and wider discounts on sour crude oils. Another highlight is that our refining operating expenses for the second quarter fell to $3.55 per barrel, which was our lowest cost per barrel since the second quarter of 2009.”