Yahoo Finance Valero Energy's 1st-quarter profit up 27 percent
Valero Energy's 1Q profit up 27 percent on strength of ethanol and North American oil and gas
SAN ANTONIO (AP) -- Valero Energy Corp. said Tuesday that its first-quarter net income rose 27 percent thanks to the growth of its ethanol business and demand for North American oil and gas.
Its results beat Wall Street expectations, and its shares briefly hit a multiyear high.
CEO Bill Klesse said he expects demand for North American oil and gas to increase "as our economy continues to recover."
The San Antonio-based refiner said net income rose to $828 million, or $1.54 per share, in the quarter ended March 31, from $654 million, or $1.18 per share, in the same quarter a year ago. Revenue rose less than 1 percent to $33.66 billion from $33.47 billion.
Analysts expected earnings of $1.39 per share and revenue of $31.41 billion, according to FactSet.
Valero's refining segment posted operating income of $1.28 billion, up 5.5 percent from last year on higher throughput margin and volumes, partially offset by higher energy costs and depreciation expense.
The company announced in March that Klesse is stepping down as CEO May 1, and will be replaced by Chief Operating Officer Joe Gorder. Klesse will stay on as chairman.
Shares of Valero slipped 38 cents to $57.59 in morning trading. Earlier, shares touched $58.97, their highest point since April 2007.
