(Reuters) - Valero Energy Corp (VLO.N) reported a 32.2% fall in quarterly profit on Thursday, as the company struggled to find low-cost heavy crude, hurting its refining margins.
Like other U.S. refiners, Valero has been facing a lack of low-cost heavy crude in the market that has been hit by production cuts from Canada’s Alberta and the Organisation of Petroleum Exporting Countries as well as sanctions on Venezuela and Iran.
The San Antonio, Texas-based company said its refining margins fell to $2.58 billion in the second quarter from $2.93 billion a year earlier.
Throughput volumes, or the total volume of crude oil refined, averaged about 2.97 million barrels per day (bpd) in the quarter, up from 2.90 million bpd, a year earlier.
Adjusted net income attributable to Valero stockholders fell to $629 million, or $1.51 per share, in the quarter ended June 30, from $928 million, or $2.15 per share, a year earlier.
Valero’s refineries ran at a utilization rate of 94% in the quarter, compared with 93% a year earlier.
Valero is the first major U.S. refiner to announce results for the quarter.
Reporting by Debroop Roy in Bengaluru; Editing by Shinjini Ganguli and James Emmanuel