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UPDATE 1-Valero pumps out strong profit as refining margins rise

Published 2015-10-28, 07:57 a/m
© Reuters. UPDATE 1-Valero pumps out strong profit as refining margins rise
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(Compares with estimates, adds Q3 details)
Oct 28 (Reuters) - U.S. refiner Valero Energy Corp (N:VLO) VLO.N
reported a better-than-expected quarterly profit, helped by
robust demand for refined products and lower crude costs.
Valero also raised its quarterly cash dividend to 50 cents
per share from 40 cents.
The company's shares were up 2.4 percent at $63.99 in
premarket trading on Wednesday.
Refiners have been pumping out strong profits due to high
crack spreads, the difference between crude oil and prices of
refined products, as crude prices have more than halved since
June last year due to a supply glut.
Valero expects continued healthy gasoline demand in the
fourth quarter, Chief Executive Joe Gorder said in a statement
on Wednesday. urn:newsml:reuters.com:*:nPnbfmks4
Gasoline demand is expected to remain buoyant, helped by
lower prices, even after accounting for a seasonal winter
downturn in the consumption of motor fuel.
Valero's refining margin rose to $14.38 per barrel in the
third quarter ended Sept. 30, from $11.81 per barrel a year
earlier.
Net income from continuing operations attributable to
Valero's stockholders rose 30 percent to $1.38 billion, or $2.79
per share.
Analysts on average had expected earnings of $2.66 per
share, according to Thomson Reuters I/B/E/S.
Operating revenue fell 34.4 percent to $22.58 billion.

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