Valero Energy 4Q net income rises on CST gain

NEW YORK (AP) -- Valero Energy's net income climbed 28 percent in the fourth quarter after the spinoff of its CST Brands unit.

The refiner spun off CST in May and recorded a gain of $325 million after it disposed of its remaining interest in the company. CST had operated Valero's gas stations.

Net income rose to $1.29 billion, or $2.38 per share, from $1.01 billion, or $1.82 per share. Excluding the proceeds of the CST transaction and other one-time items the company earned $1.78 per share, down from $1.88 per share a year ago. Revenue fell 1 percent, to $34.43 billion from $34.7 billion.

The results were in line with the company's guidance from Jan. 22. Analysts expected Valero to report net income of $1.49 per share and $29.34 billion in revenue, according to FactSet.

The company, based in San Antonio, Texas, reported that net income grew 31 percent to $2.72 billion, or $4.97 per share. Revenue fell 1 percent to $138.07 billion.

Shares of Valero Energy Corp. rose 80 cents to $75.88 in midday trading.