Energy company Valero has reported a 44% decline in third quarter net profit after weak margins in its refining operations a once-off charge booked on converting an Aruban refining complex into a storage facility dragged down its earnings.
Valero was forced to pay an impairment charge of $341 million as a result of its decision to go ahead with the conversion, while $41m had to be paid to workers as part of severance pay packages for ex-workers.
Overall net income was reported at $674m for the quarter (July to September), down from $1.2bn recorded at the same time last year.
The company, which operates 16 refineries and 6,800 convenience stores across the North American mainland and the Caribbean, said that its retail income dropped from $97m a year ago to $41m, mainly because of lower margins.
Shares in Valero have been suspended temporarily because of the damage caused by the arrival of Hurricane Sandy.
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