Valero
Energy Corp reported an 11.7 percent rise in net income on Tuesday sending its
shares up in premarket trades. The company also announced a plan to spin-off
its gas retailing business.
Get Free Trend
Analysis on VLO
The
oil refiner notched up earnings of $831 million, or $1.50 per share, in the
June quarter. That compares with $744 million, or $1.30 per share, in the
year-ago quarter. Revenue increased by 10.8 percent to $34.7 billion.
Analysts
were expecting earnings of $1.44 per share on revenue of $33.6 billion.
The
decision to spin-off its gasoline retailing into a separate business is
expected to make the company more flexible and easier to manage in terms of
strategic focus.
"As
independent companies, both retail and the remaining business will be
better-positioned to focus on their industry-specific strategies,"
Chairman and CEO Bill Klesse said.
How
Should Investors Trade VLO Now
The
gasoline retailing business was responsible for 27 percent growth in the income
for the company in the second quarter. The Pembroke refinery it bought last
year also boosted its results in the June quarter.
Shares
in the company were up nearly 7 percent at $27.90 in mid-morning trades in New
York.
No comments:
Post a Comment