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Oil rebound boosts financial results of refiners Valero and PBF

oil Valero refinery Louisiana

Oil increasing demand due to an easing in Covid-19 related restrictions, has boosted the financial results of refiners Valero and PBF Energy, reported Reuters; results from both companies surpassed analysts’ expectations.

Firstly, Valero Corp released this Thursday its financial results; reporting a 2Q 2021 adjusted net income attributable stockholders of $197 million, or $0.48 per share; a substantial increase, when compared to the adjusted net loss attributable to stockholders of $504 million, or $1.25 per share, in the second quarter of 2020.

Secondly, in the oil refining segment, Valero reported a $349 million of operating income for 2Q 2021; the adjusted operating income was $361 million for 2Q 2021, while in 2Q 2020 the company had an adjusted operating loss of $383 million.

Thirdly, for the refinery throughput volumes, the company averaged 2.8 million barrels per day in the second quarter of 2021; which was 514 thousand barrels per day higher than the second quarter of 2020.

Moreover, according to Reuters, the oil refining margin of Valero rose 36%, to $1,97 billion. About it, Valero’s CEO, Joe Gorder, said. “Our system’s flexibility and the team’s relentless focus on optimization in a weak; but otherwise improving margin environment, enabled us to deliver positive earnings in the second quarter.”

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Refining oil margins and Renewable diesel segments boosting in Valero

In addition, soon after the announcement, Valero’s shares jumped 2,5%; as the financial results, out passed analysts and investors expectations. As outlined above, the company had and adjusted profit per share of 48 cents; while estimations were for 14 cents.

On the other hand, PBF’s gross refining margin was $711.3 million; up from $650.2 million in the first quarter of the year. After the release of the financial results, PBF’s shares gained 3,5%, according to Reuters.

Furthermore, PBF’s CEO, Tom Nimbley, said fuel demand was gradually improving; but it is still not at pre-pandemic levels. “We expect, as demand incrementally improves, that we could see additional crude supply enter the market; which could directionally shift current headwinds to tailwinds in the commodities market.” He said.

Finally, Valero reported a strong performance in its renewable diesel unit; which consists of the Diamond Green Diesel joint venture; it reported $248 million of operating income for the second quarter of 2021; compared to $129 million for the second quarter of 2020.Sales for  Renewable diesel also peaked at 923,000 gallons per day in 2Q 2021; which was 128,000 gallons per day higher than last year’s same period.

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