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SAN ANTONIO -- Valero Energy Corp. saw the highest quarterly net income in the company's history for its recently completed second quarter, at $2.2 billion, helped by high refining margins, the San Antonio Business Journal reported.
Valero's revenue reached $24.2 billion for the three months ended June 30, compared to $25.6 billion for the year-ago period.
"We are enjoying another outstanding year in 2007, as the company posted its best ever quarterly profits," Valero chairman and CEO Bill Klesse said in a written statement. "The environment for refining margins was terrific in the second quarter, and we continued to benefit from our complex, geographically diverse refining system."
Company officials stated gasoline and diesel demand in the U.S. continues to be strong, while the growing worldwide demand has increased competition for refined products.
"On the supply side, the industry has suffered from higher than normal unplanned refinery downtime," Klesse added.
Meanwhile, production is impacted by more stringent refined product specifications and a tight supply for skilled labor and equipment, according to Klesse. All of the above factors "have contributed to the lowest inventory levels we've seen in years for gasoline and distillate on a days-of-supply basis," he said.
"It's a very exciting time to be in the refining business," Klesse concluded. "Margins and earnings have been outstanding, and when you consider the underlying supply and demand trends, we see a great outlook for the industry."