Valero Energy Corporation, the largest San Antonio based company and one of the largest energy companies in the country, today reported stronger than expected First Quarter earnings on the strength of growing production and demand for gasoline, News Radio 1200 WOAI reports.
"In the first quarter, we saw healthy domestic and export demand for refined products, driven by low prices and season weather conditions in the United States and Europe, and a resurgence in domestic oil patch activity," Valero CEO Joe Gorder said.
Operating revenue from refining jumped from $14.92 billion in the First Quarter of 2016, to $ 20.89 billion.
Valero reported total net income attributable to shareholders fell by about 38% compared with last year, due largely to investments and the higher costs of manufacturing alternative fuels.
The earnings of 68 cents a share, however, vastly surpassed analysts estimates.
Gorder says all signs are in place for continued strength in the oil sector for the rest of this year.
"We con tinue to see rig count increases in the U.S, particularly in the Permian Basin," he said. "As production ramps up and more domestic sweet crude makes its way to the Gulf Coast, our refineries are positioned to capture the opportunities."
Valero said one surprise is the strength of the export market for gasoline.
"We're seeing a stronger pull on exports from what we saw last year, particularly a strong pull of gasoline into Mexico and South America."