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Maker of transportation fuels and petrochemical products $VLO said that it successfully commissioned new Corpus Christi crude unit, hydrocracker expansion at Port Arthur refinery, and crude unit expansion at the McKee refinery during 4Q15. The company's Quebec City refinery also began receiving crud via Enbridge's Line 9B pipeline.
$VLO and $MMP announced the expansion of marine storage facility currently under construction in Pasadena, Texas. The facility is to be owned by a limited liability company that is owned 50/50 by $MMP and Valero Terminaling and Distribution Company, an arm of $VLO. The two-phase expansion, to be funded equally by both, costs approx. $820MM.
V-Tex Logistics, LLC, an indirect subsidiary of $VLO, agreed with Magellan Pipeline Co., an indirect unit of $MMP, to jointly build about 135-mile, 16-inch products pipeline from Houston to Hearne, Texas. Also, $VLO will separately build a terminal in Hearne, a terminal in Williamson County, Texas, and pipeline connecting the two terminals.
Valero Marketing and Supply de Mexico, a subsidiary of $VLO, inked long-term deals with Infraestructura Energetica Nova (IEnova) to import refined products at Port of Veracruz. It has contracted with IEnova to use 3 upcoming terminals at Veracruz, Puebla and Mexoci City for the purpose. Valero can acquire a 50% interest in each of the terminals.
$VLO clarified that the California Attorney General filed suit against a proposed acquisition by $VLO’s subsidiary of two petroleum storage and distribution terminals owned by a subsidiary of $PAA. Erroneous reports said the AG filed suit to prevent a merger between $VLO, Valero Energy Partners LP, and $PAA. This motion has been denied in court.
Going forward, $VLO estimates that the demand in U.S. is going to continue to grow. For the next five to ten years, the company forecasts a slight decline in gasoline demand in the U.S., which will be determined the economic activity. $VLO added that it will look for opportunities to increase its market presence in different international markets.
Valero remains on track to invest $2.7Bil of total capital in FY17, consisting of $1.1Bil for growth projects and $1.6Bil for sustaining the business, the company said as it posted 1Q17 results. $VLO exported a total of 365,000 barrels per day of gasoline and diesel during the first quarter.
In 1Q17, $VLO's capital investments totaled $641MM, of which $245MM was for turnarounds and catalyst. The company generated $988MM of net cash from operating activities. Valero ended 1Q17 with $8.5Bil of total debt and $4.5Bil of cash and temporary cash investments. The debt to capital ratio, net of $2.0Bil in cash, was 24%.
$VLO posted a drop in attributable net income of $305MM or $0.68 per share for 1Q17, compared to $495MM or $1.05 per share a year ago. Total operating revenues were $21.77Bil, vs. last year's $15.71Bil. The refining segment reported $647MM of operating income, down from $915MM. The ethanol segment operating income dropped to $22MM from $39MM.
Petroleum refining and marketing company $VLO reported 23% rise in its 4Q16 earnings, helped by higher revenues. Net income was $367MM, or $0.81 per share, compared to $298MM, or $0.62 per share during 4Q15. Operating revenues rose 10% YoverY to $20.7Bil. Excluding items, $VLO earned $0.817 per share.