The largest refiner in North America, Valero Energy (VLO 19.97, -0.30), reported a wider-than-expected quarterly loss as weak demand for refined products, coupled with high inventories, took a toll on margins.
Valero reported a third quarter loss of $0.39 per share, excluding nonrecurring items, $0.06 worse than the First Call consensus that expected a loss of $0.33.
Revenues fell 45.8% year-over-year to $19.49 billion; the consensus expected $18.84 billion.
Valero said its efforts to reduce costs are paying off. "Comparing the first nine months of 2008 versus 2009, our refinery operating expenses excluding depreciation and amortization were down more than $700 million," said CEO Bill Klesse. "Much of this was due to lower energy and natural gas prices, but over $200 million was due to our ongoing cost-reduction efforts."
No comments:
Post a Comment