Lower refining margins cut Valero’s profit in half
5/3/2016 12:00:00 AM
May 3 (Reuters) -- US refiner Valero Energy reported a 49% fall in profit, hurt by weak margins and higher inventories.
Refiners ramped up production in 2015, leading to higher inventories and weaker margins this year as demand softened during the mild winter.
Valero's refining throughput margin fell to $7.96/bbl in the first quarter, from $12.39/bbl last year.
Net income attributable to shareholders fell to $495 million, or $1.05/share, in the first quarter ended March 31, from $964 million, or $1.87/share, a year earlier.
Operating revenue fell 26.3% to $15.71 billion in the quarter.
Up to Monday's close of $59.82, Valero's New York-listed shares have fallen 15.4% this year, while the S&P 500 oil & gas refining & marketing sub-index has fallen 13.3% over the same period.
(Reporting by Kanika Sikka in Bengaluru; Editing by Savio D'Souza and Shounak Dasgupta)
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