Refiner Valero Energy posted its highest-ever quarterly profit on Thursday, beating Wall Street expectations, as disruptions caused by the Middle East conflict sent refining margins soaring during the third quarter.
Shares of the company rose 2.6% in premarket trading.
The US refining industry has been reaping bumper profits since the start of the war in Iran, with benchmark margins for converting crude into transportation fuels rising over two-fold.
The 3-2-1 crack spread, which measures refinery margins, gained more than 150% on average during the July-September period, from a year earlier.
Valero Energy said its refining margin per barrel of throughput was $39.24 in the quarter, compared with $13.14 a year earlier.
Valero’s refining segment reported adjusted operating earnings of $8.8 billion, compared with $1.7 billion a year earlier.
The San Antonio, Texas-based company kicked off the earnings season for refiners with an adjusted profit of $23.90 per share, marking its second straight quarter of record profit. Analysts were expecting Valero to report a profit of $21.07 per share, according to data compiled by LSEG.
(Reporting by Vallari Srivastava and Anushree Mukherjee in Bengaluru; Editing by Maju Samuel)