February 1, 2008 at 11:52 pm #3812
Valero taps JPMorgan to study Memphis refinery’s future
Memphis Business Journal, Wednesday January 30, 3:39 pm ET
After reporting earnings losses for the second straight quarter, Valero Energy Corp. officials announced they have retained JPMorgan to explore “strategic alternatives” for the Memphis and Krotz Springs, La. refineries.
Rising crude and feedstock prices helped hit the San Antonio-based oil refining and marketing company with another quarter of loses.
Valero reported net income of $567 million, or $1.02 per share, on revenues of $28.6 billion for the quarter. This compares to net income of $1.1 billion, or $1.74 per share, on revenues of $18.8 billion for the year ago quarter.
Valero acquired the Memphis refinery at 543 Mallory in 2005 as part of its $8 billion merger with Premcor Inc.
Valero (NYSE: VLO) owns and operates 17 refineries throughout the United States, Canada and the Caribbean with a combined throughput capacity of 3.1 million barrels of oil per day.
The company also is one of the nation’s largest gasoline operations, with 5,800 wholesale and retail outlets under the Valero, Diamond Shamrock, Shamrock, Ultramar and Beacon brands.
Published January 30, 2008 by the Memphis Business Journal
February 1, 2008 at 11:59 pm #7072
Looks like lot Valero Refineries are still on block for sale: Aruba, Houston, Memphis & Krotz Springs.
Here is news item on Houston.
Valero chief talks to local refinery workers about sale rumors
Bloomberg News Jan 31, 2008
Valero Energy Corp., the largest U.S. refiner, may sell its plant in Houston plant rather than invest in the upgrades needed to improve the facility’s profitability.
“I’m not going to dodge the big question,” Chief Executive Officer Bill Klesse told employees at the refinery in a meeting today.
No decision on the plant’s future has been made, said Klesse, who noted that employees had asked repeatedly about rumors the plant would be sold.
“We’re not going to fund every single refinery,” Klesse told workers.
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