Valero Energy Corporation (NYSE:VLO) shared its third quarter earnings sheets, revealing handsome profits, almost double what the company had made last year. Earnings per share stood at 2.00 dollars, almost double what it made last year (0.57 EPS). Valero Energy Corporation (NYSE:VLO) beat analyst expectations by a large margin; quarterly revenue amounted to 34.41 billion as compared to the forecasted 31.58 billion. However it’s less than what the company made back in the same quarter a year ago.
What prospered a lot was the operating income, which soared up to 1.67 billion, almost triple than the last quarter. Valero Energy Corporation (NYSE:VLO) has lower crude costs to thank for that. The income largely came in from cuts in sweet and sour crude oils, high gasoline margins throughout regions and a raise in refining throughput volumes. Oil refining income gained 1.06 billion dollars and the ethanol section shot up to 198 million dollars, which is a lot more than it was a year ago in the same quarter (113 million).
Oil refineries were working at 98 percent when it came to capacity utilization. That meant that Valero Energy Corporation (NYSE:VLO) loaded 2.8 million barrels a day as compared to 42,000 barrels last year. This increase in the volume capacity is because of a higher throughput and decrease in turnaround activities. Things got easier for Valero Energy Corporation (NYSE:VLO) because of the support it got from young product experts and the arrival of the North American light crude oil in the U.S Gulf Coast.
Valero Energy Corporation (NYSE:VLO) said that it was aiming for a capex of 2.9 billion dollars for this year; however earnings guidance was not announced. Out of the 2.9 billion, 1.5 will be dedicated to expansion of the whole operation. For next year the company aims to spend 2.8 billion dollars, dedicating 1.3 billion to growth. Forecast reveals that Valero Energy Corporation (NYSE:VLO) will be making somewhere around 27.75 billion dollars in the next quarter while the full year earnings per share would stand at 5.52 dollars on earnings of 128.84 billion.
Ethanol business increased because of the manufacturing of a brand new plant- the 11th one dedicated to ethanol production. The business amounted to 628 million dollars out of the total operating income of 1.67 billion dollars. As far as stock market is concerned, share price went up by 1.3 percent, standing at 50.99 dollars. The expected price was 63.70 dollars, which came as a bit of a letdown. In this day and age, oil companies are prospering because of unlimited future prospects, hence attracting powerful investors.
Valero Energy Corporation (NYSE:VLO) has been a consistent earner and the quarter earnings it posted showed how much promise the company holds. Valero Energy Corporation (NYSE:VLO) managed to beat most of the consensus estimates, sending out a message to the market and ensuring its investors that their money is in safe hands. In the days to come we’ll be hearing Valero Energy Corporation (NYSE:VLO)’s name a lot, if it continues to post consistent profits.