Valero sees second-quarter profit below expectations
July 14 (Reuters) - U.S. refining company Valero Energy Corp on Monday said second-quarter income will be higher than a year ago but profit will fall short of Wall Street estimates on seasonal weakness in its biggest Gulf Coast market.
Doug Terreson, analyst at ISI Group, said the company's capture rate in the Gulf Coast typically weakens in the second quarter. Capture rates represent a refining company's ability to profit from current market conditions.
Valero expects income from continuing operations of $1.10 to $1.25 per share for the second quarter of 2014. Analysts on average had expected a profit of $1.39 per share, according to Thomson Reuters I/B/E/S.
Valero also expects to report a loss from discontinued operations of $63 million, or 12 cents per share, related primarily to a non-cash charge associated with the closure of its Aruba refinery.
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