(Reuters) - Western Refining Inc WNR.N said it was seeing “good refining margins” and strong demand for gasoline and diesel.
U.S. refiners, which had already been benefiting from access to cheap U.S. shale crude, have seen crude costs fall due to a near 60 percent drop in global oil prices since last June.
Western Refining’s cost of products sold fell nearly 44 percent to $1.90 billion in the third quarter ended Sept. 30.
However, a 37 percent fall in revenue due to lower retail fuel sales weighed on net income.
Net income fell 18 percent to $160 million, or $1.61 per share. Excluding items, profit was $1.69 per share, higher than the average analyst estimate of $1.60, according to Thomson Reuters I/B/E/S.
The company’s revenue of $2.57 billion also beat analysts expectations of $2.38 billion.
Reporting by Manish Parashar in Bengaluru; Editing by Maju Samuel