Yahoo Finance Valero forecasts 4Q results above expectations
Refiner Valero says 4Q profit to beat expectations on volume, lifts dividend 11 percent
SAN ANTONIO (AP) -- Valero Energy Corp. is forecasting fourth-quarter adjusted profit that's higher than analysts expect, as the oil refiner benefits from higher volumes and wider discounts for certain crude oils.
The company also announced an 11 percent increase in its dividend, and shares of Valero rallied in late trading.
The company said that fourth-quarter earnings after a one-time gain would be in the range of $1.60 to $1.80 per share.
That excludes a nontaxable gain of $325 million related to sale of an interest in CST Brands Inc. Including that gain, net income will be between $2.20 and $2.40 per share, the company said.
Analysts, who usually exclude items, expected 96 cents per share, according to FactSet.
Valero said that operating income from refining would be nearly as high as it was in the fourth quarter of 2012 due to higher volume and slightly wider discounts for so-called sour crude oil. The San Antonio company also said operating income in its ethanol business would rise "significantly" from a year earlier on higher gross margins and production volumes.
The company said separately it is raising its regular quarterly dividend 11 percent to 25 cents per share from 22.5 cents per share.
The dividend will be payable on March 12 to shareholders as of Feb. 12, the company said.
It was Valero's third dividend increase in a year.
Shares of Valero closed down 94 cents at $50.95 on Wednesday. In extended trading after the fourth-quarter outlook, they were up $2.05, or 4 percent, to $53.
