Valero Upbeat on Refining Margins, Mexico's Export Potential

April 26, 2024--Researched by Industrial Info Resources (Sugar Land, Texas)--Thanks to a tight crude-oil supply at the start of 2024, Valero Energy Corporation (NYSE:VLO) (San Antonio, Texas) was able to mitigate the effects of heavier-than-average planned maintenance during the first quarter of 2024. Strong refining margins--which resulted partly from global shocks, such as weaker Russian refining capacity due to Ukrainian drone attacks--are allowing refining majors like Valero to keep their numbers in the black.

Industrial Info is tracking about $1.5 billion worth of active and planned projects from Valero across the U.S. and Canada, more than 70% of which is attributed to refining-related projects. U.S.-based refiners are poised to see growing export potential from Mexico, according to Valero's analysts. The company's Mexican subsidiary believes the country will not be able to meet growing demand with its own refining capacity.

Other companies featured: Petroleos Mexicanos, Darling Ingredients Incorporated and Burns & McDonnell Incorporated.