By Tess Stynes

Valero Energy Corp. said its third-quarter earnings fell 55% as its refining business was hit by weaker margins for gasoline and other refined products.

Narrower discounts on domestic crudes compared with other crudes and higher costs related to biofuel blending requirements also weighed on results.

However, per-share earnings, excluding certain items, and revenue topped expectations. Shares rose 2.6% to $57.64 in early trading.

Over all, Valero Energy reported a profit of $613 million, or $1.33 a share, down from $1.38 billion, or $2.79 a share, a year earlier. Excluding items, per-share earnings were $1.24. Revenue decreased 13% to $19.65 billion.

Analysts expected adjusted per-share profit of 93 cents and revenue of $16.62 billion, according to FactSet.

U.S. refiners haven't been benefiting as much from regional price differences for crude lately as domestic production has fallen and the country is allowing crude exports. New pipelines also have smoothed out price differences between regions.

The company expects that its 2016 capital expenditures will come in $200 million below its previous guidance of $2.6 billion.

Write to Tess Stynes at tess.stynes@wsj.com

(END) Dow Jones Newswires

October 25, 2016 10:37 ET (14:37 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.
Valero Energy (NYSE:VLO)
Historical Stock Chart
From Mar 2024 to Apr 2024 Click Here for more Valero Energy Charts.
Valero Energy (NYSE:VLO)
Historical Stock Chart
From Apr 2023 to Apr 2024 Click Here for more Valero Energy Charts.