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.
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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.
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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.