Refiner posts smaller-than-expected loss, pins recovery hopes on vaccine rollout
1/28/2021
U.S. refiner Valero Energy Corp posted a much smaller quarterly loss than Wall Street expected and pinned hopes on widespread COVID-19 vaccinations to ease travel restrictions and improve demand for fuel.
Crude prices have continued to climb after rallying more than 20% in the last quarter, driven by optimism over the development of coronavirus vaccines, even as refiners struggled with uneven demand due to renewed lockdown measures. We expect to see continued improvement in product demand with widespread vaccine distribution around the world, Chief Executive Officer Joe Gorder said, adding that the company expects a faster recovery in margins from the shuttering of smaller, uncompetitive refineries.
Valero reports $359M loss for fourth quarter
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The Valero refinery in Port Arthur.Jon Shapley, Staff photographer / Staff photographer
Valero Energy continued to lose money in the fourth quarter but at a slower pace as the coronavirus pandemic and the near shutdown of the U.S. economy continued to reduce demand for its refined crude oil products.
The company said it lost $359 million in the last three months of the year, compared with a $1.1 billion profit during the same period in 2019. The quarterly losses declined from the third quarter as the industry showed signs of recovery.
Revenue declined 40 percent to $16.6 billion from $27.8 billion in the same period a year earlier.
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