Valero's Q2 beats expectations as refining volume jumps

Valero Energy (NYSE:VLO) +1.2% premarket after Q2 earnings and revenues beat Wall Street expectations, as VLO's refining segment reported higher volumes and operating income.

Q2 refining throughput volumes averaged 2.7M bbl/day, an increase of 115K bbl/day from the year-ago quarter, due primarily to less turnaround activity and higher utilization rates spurred by the availability of discounted North American light crude oil on the U.S. Gulf coast.

Refining operating income rose 18% Y/Y to $1.08B, reflecting higher volumes and bigger discounts on certain kinds of oil, which the company had projected earlier this month.

The ethanol segment's operating income nearly doubled to $187M, boosted by higher margins related to lower corn costs.

Expects 2014 capex of $3B, including $870M for logistics investments, most of which are expected to be eligible for drop-down into Valero Energy Partners (NYSE:VLP) in the future.

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