OREANDA-NEWS. Valero Energy Corporation (NYSE: VLO, “Valero”) today reported net income from continuing operations attributable to Valero stockholders of $1.4 billion, or $2.79 per share, in the third quarter of 2015 compared to $1.1 billion, or $2.00 per share, in the third quarter of 2014.

Valero also reported that its Board of Directors approved a 25 percent increase in the regular quarterly cash dividend on common stock from $0.40 per share to $0.50 per share, effective with the quarterly dividend payable on December 17, 2015 to holders of record at the close of business on November 23, 2015.  The increase in the dividend raises the company’s annualized cash dividend to $2.00 per share.

“So far this year, we’ve invested $1.7 billion into our business, increased our dividend over 80 percent, and more than doubled our buyback total,” said Joe Gorder, Valero Chairman, President and Chief Executive Officer.  “We had solid operations and made great strides on strategic investments including the crude unit projects at Corpus Christi and Houston.” 

The company expects the Corpus Christi and Houston crude units to be complete in the fourth quarter of 2015, and the first half of 2016, respectively.

Refining
The refining segment generated third quarter 2015 operating income of $2.3 billion compared to $1.7 billion in the third quarter of 2014.  The $631 million increase in operating income primarily resulted from a $2.57 increase in throughput margin per barrel from $11.81 in the third quarter of 2014 to $14.38 in the third quarter of 2015, driven mainly by stronger gasoline and other product margins.  Partially offsetting these factors were lower distillate margins and discounts for most sweet and sour crude oils relative to Brent crude oil.

Third quarter 2015 refining throughput volumes averaged 2.8 million barrels per day, which was in line with the third quarter of 2014.  Valero’s refineries operated at 96 percent throughput capacity utilization in the third quarter of 2015.  The company delivered export volumes of 330 thousand barrels per day, a record for a third quarter.

“With strong product margins and healthy demand, we delivered solid results this quarter,” said Gorder.  “We are seeing good seasonal demand for our products in the fourth quarter.”

Ethanol
The ethanol segment generated third quarter 2015 operating income of $35 million compared to $198 million in the third quarter of 2014.  The $163 million decrease in operating income was mainly due to lower gross margin per gallon driven primarily by a decline in ethanol prices.  Average ethanol production volumes were 3.9 million gallons per day in the third quarter of 2015, an increase of 297,000 gallons per day versus the third quarter of 2014, primarily due to incremental production volumes from the Mount Vernon plant, which was acquired in 2014 and began operating in August 2014.