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Article: Hard-Hit Valero Suffers Short-Term Pain In Hope of Making Long-Term.
- Article from:
- The Oil Daily
- Article date:
- February 12, 1999
- Author:
CopyrightCOPYRIGHT 1999 Energy Intelligence Group. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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BY Antoine Halff
Gains
Few companies have been hit harder by low oil prices than Valero Energy Corp., once a Wall Street darling and a leading light among the nation's fast-growing independent refiners.
Most U.S. refiners were punished for high runs last year with weak product prices. But San Antonio, Texas-based Valero proved to be one of the most vulnerable. It chalked up a net loss in 1998 of $47.3 million, and lost a hefty $85.7 million in the fourth quarter because of low margins and inventory write-downs.
Valero has 735,000 b/d of refining capacity, heavily concentrated in the ailing U.S. Gulf Coast market, and no retail outlets ...