Jan 29 (Reuters) - U.S. refiner Valero Energy surpassed Wall Street expectations for fourth-quarter profit on Thursday, on the back of a rebound in margins as well as higher throughput volume.
Shares of the company, which is the second largest U.S. refiner by capacity, rose 1.6% to $186.97 before the bell.
During the fourth quarter, U.S. refining margins, measured by the 3-2-1 crack spread, rebounded from the multi-year lows seen in 2024, when profits eased from post-pandemic highs due to supply disruptions
from Russia's invasion of Ukraine.
The company's refining margin per barrel of throughput was $13.61 in the quarter, compared with $8.44 a year earlier.
The refiner said its average throughput volume rose slightly to 3.1 million barrels per day in the quarter, from 2.9 million bpd a year earlier.
Valero kicked off the earnings season for U.S. refiners, as the energy sector prepares to boost output in Venezuela after the Trump administration outlined a long-term plan urging companies to spend $100 billion to revive the country's oil industry.
Analysts have said Valero stands to benefit significantly from a recovery in Venezuelan crude imports into the U.S. According to BofA analysts, the refiner can run an incremental 200,000 bpd of output from the South American country in the near term.
The refiner added it was progressing with the FCC Unit optimization project at the St. Charles Refinery to enhance its ability to produce high-value products. The project is expected to cost $230 million and be completed in the second half of the year.
The Houston, Texas-based company posted an adjusted profit of $3.82 per share for the three months ended December 31, compared with analysts' expectations of $3.27 per share according to data compiled by LSEG.
(Reporting by Vallari Srivastava in Bengaluru; Editing by Krishna Chandra Eluri)
