Valero Energy Corp. warned Thursday its second-quarter profit will fall below estimates because of higher costs and shallower discounts for heavy sour crude oil.
Valero, the nation’s largest independent refiner, said it expects to report net income of 80 cents to 90 cents a share for the period ended June 30. The company reported net income of $1.50 a share for the second quarter of 2012.
Analysts had expected the independent refiner to report a profit of $1.27 a share, according to Thomson Reuters I/B/E/S.
San Antonio-based Valero said its results will be affected by lower discounts for heavy sour crude oil, higher costs for natural gas, as well as maintenance work at its plants in Quebec City in Canada and Meraux, La., as well as its McKee and Port Arthur plants in Texas.
Valero also said higher costs for complying with federal Renewable Fuels Standard will be a greater than expected drag on earnings. The standard requires that a certain percentage of transportation fuels come from renewable sources.
The company said its estimate includes an after-tax charge of about $29 million, or 5 cents a share, related to the May 1 spinoff of its retail segment, CST Brands.
Also included in the estimate are charges of about $52 million related to environmental and legal matters.
Valero will release second-quarter earnings on July 23.