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

[April 26, 2022]    (Reuters) - Valero Energy Corp on Tuesday reported a first-quarter profit compared to a year-ago loss, as the U.S refiner benefited from strong refining margin and higher demand for fuel and refined products.

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

Global fuel demand rebounded to near pre-pandemic levels while overall crude oil supplies tightened due to the Russia-Ukraine war, boosting margins in the sale of gasoline and diesel.

Refiners have also benefited from a surge in natural gas prices in Europe, which has reduced distillate inventories worldwide.

Valero, the first major U.S. refiner to post quarterly results, said its quarterly refining margin more than doubled to $3.21 billion from a year earlier.

"The fundamentals that drove strong results in the first quarter, particularly in March, continue to provide a positive backdrop for refining margins," Chief Executive Officer Joe Gorder said in a statement.

Net profit attributable to the company's stockholders was $905 million, or $2.21 per share, for the three months ended March 31, compared with a loss of $704 million, or $1.73 per share, in the year-ago quarter.

(Reporting by Rithika Krishna in Bengaluru; Editing by Shailesh Kuber)

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