(Reuters) – Refiner Valero Energy reported lower second-quarter profit on Thursday, hurt by a drop in margins due to a tepid summer season and an increase in global refining capacity.
Refineries increased their processing capacity to 93.5% in the second quarter, compared with 91% in the same period a year ago, in hopes of a surge in demand that did not materialize, according to the Energy Information Administration.
Energy majors BP and Exxon Mobil had previously said that weak fuel prices would have a negative impact on their profits in the reported quarter.
Valero said its refining margins were $3.05 billion in the second quarter, compared with $4.22 billion last year.
The San Antonio, Texas-based company reported net income of $880 million, or $2.71 per share, for the three months ended June 30, down from $1.94 billion, or $5 .40 per share last year.
(Reporting by Sourasis Bose in Bengaluru; Editing by Pooja Desai)
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