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July 29 (Reuters) – U.S. refiners Valero Energy Corp (VLO.N) and PBF Energy Inc (PBF.N) released results that exceeded analysts’ expectations as they benefited from a rebound in demand for fuel due to an easing of COVID-19-related travel restrictions.
After hitting record highs in 2020, fuel consumption has increased this year as expanding vaccination campaigns encourage governments to lift restrictions linked to the virus.
Valero’s second-quarter refining margin increased nearly 36% to $ 1.97 billion, with managing director Joe Gorder saying the margin environment for refining was “weak, but otherwise improving “.
PBF’s gross refining margin, meanwhile, was $ 711.3 million, up from $ 650.2 million in the first quarter.
Valero shares jumped 2.5% pre-market, while PBF gained 3.5%.
PBF CEO Tom Nimbley said demand for fuel was gradually improving, but still not at pre-pandemic levels.
“We expect that as demand gradually improves, we may see additional supply of crude enter the market, which could shift current headwinds to tailwinds in the commodities market.” , Nimbley said.
Valero and PBF, which launched the U.S. Refiner Profit Reports, also saw 15-20% improvements in their refining throughput – the amount of crude processed by these companies.
Valero’s adjusted earnings of 48 cents per share topped analysts’ estimates by 14 cents, while PBF’s adjusted loss of $ 1.26 was lower than expected loss of $ 1.46, according to Refinitiv IBES estimates .
Report by Shariq Khan in Bangalore; edited by Uttaresh.V
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