By San Antonio Business Journal

Valero Energy Corp. is reporting the companyâ¿¿s best quarterly financial results since the third quarter of 2008.

Valero (NYSE: VLO) reported net income from continuing operations of $530 million, or 93 cents, on revenues of $21.8 billion for the quarter ended June 30, 2010.

This compares to a loss from continuing operations of $191 million, or 36 cents per share, on revenues of $17.4 billion for the same period a year ago.

Discontinued operations refer to Valeroâ¿¿s refinery in Delaware City, which the company shut down in 2009 and sold in the second quarter of 2010.

⿿It⿿s great to be profitable again,⿝ says Valero Chairman and CEO Bill Klesse. ⿿Our second quarter results really showed the earnings power of our assets.

⿿Our system of high-conversion refineries was able to take advantage of higher margins on products and wider discounts on sour crude oils,⿝ Klesse says. ⿿Another highlight is that our refining operating expenses for the second quarter fell to $3.55 per barrel, which was our lowest cost per barrel since the second quarter of 2009.⿝

Valeroâ¿¿s management set a goal early in the year to achieve $100 million in pre-tax cost savings this year. At the end of June, Valero was ahead of schedule by identifying $90 million in cost savings.

San Antonio-based Valero is refining and marketing company with 21,000 employees. The company owns or operates 15 refineries with a combined throughput capacity of 2.8 million barrels per day.

Valero distributes petroleum products through its national network of 5,800 retail and wholesale branded outlets in the United States, Canada and the Caribbean.

Valero is also a leading ethanol producer with 10 ethanol plants in the Midwest with a combined capacity of 1.1 billion gallons per year.

Copyright 2010 American City Business Journals

Copyright 2010