UPDATE: Valero Energy Posts Higher Q3 Profit

Valero Energy

reported a strong rise in its third-quarter earnings. The San Antonio, Texas-based company posted a quarterly profit of $1.06 billion, or $2 per share, versus a year-ago profit of $312 million, or $0.57 per share. The company's earnings from continuing operations came in at $2.01 per share. Its revenue dropped 4.8% to $34.41 billion. However, analysts were expecting earnings of $1.58 per share on revenue of $31.6 billion. Operating income in the quarter surged to $1.7 billion from $532 million in the year-ago quarter. Operating income in the refining segment jumped to $1.66 billion from $600 million, while operating income in the ethanol segment climbed 75.2% to $198 million. Refining throughput volumes averaged 2.8 million barrels per day, a rise of 42,000 barrels per day versus the year-ago quarter. Total costs and expenses slipped 8% to $32.7 billion in the quarter. Valero raised its quarterly dividend by 10% to $0.275 per share. "Our strong performance during the quarter reflects the capabilities of our team and our assets to capitalize on market opportunities," said Valero CEO and President Joe Gorder. "Our ability to do so has been enhanced by the capital invested in our refineries and logistics systems. Valero Energy shares gained 1.29% to $50.99 in pre-market trading.