Valero kicks off U.S. refiners' third-quarter earnings with profit

[October 21, 2021]  (Reuters) - Valero Energy Corp posted a quarterly profit on Thursday, compared with a year-ago loss, as a strong rebound in gasoline demand helped the refiner tide over pressure from soaring crude costs.

The Valero refinery next to the Houston Ship Channel is seen in Houston, Texas, U.S., May 5, 2019. REUTERS/Loren Elliott

Margins on refined products have jumped from a pandemic-induced slump in the world's largest fuel consumer, with gasoline and distillate demand returning to five-year averages.

The company's third-quarter refining margin was $2.597 billion, compared with $952 million in the previous year.

"We saw significant improvement in refining margins in the third quarter as economic activity and mobility continued to recover in key markets," Chief Executive Officer Joe Gorder said in a statement.

The company, the first major U.S. refiner to report quarterly earnings, said net income attributable to its stockholders stood at $463 million, or $1.13 per share, for the three months ended Sept. 30. The company posted a loss of $464 million, or $1.14 per share, a year earlier.

(Reporting by Arunima Kumar in Bengaluru; Editing by Arpan Varghese)

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