Valero Energy Partners’ net income jumped 79 percent to $31.4 million from growth directly attributed to acquisitions including the St. Charles terminal in its recently reported third quarter earnings.
In the same period last year, the figure was $17.5 million, showing the increase is substantially due to increased refinery production and low crude prices.
Valero Energy Partners stock shares also shot up 5.2 percent from $52 to $54.
“We exceeded our target to complete $1 billion of acquisitions from Valero in 2015,” said Joe Gorder, chairman and CEO of Valero Energy Partners. “Our distribution growth plans remain intact.”
The San Antonio-based company’s third-quarter net revenue overall also soared 84 percent to $62 million from $33.7 million reported at the same time last year.
The company attributed the increase mostly to revenue generated from terminals in Louisiana and Houston.
Valero Energy Partners is a limited partnership formed by Valero Energy Corp. to develop and acquire pipelines, terminals and other transportation and logistics assets.
With headquarters in San Antonio, the partnership’s assets include crude oil and refined petroleum products pipeline and terminal systems in the Gulf Coast and Mid-Continent regions of the United States that are integral to the operations of nine of Valero’s refineries.
According to Valero, the St. Charles Refinery in Norco was acquired with the purchase of Orion in 2003 for $400 million plus about $100 million for working capital.
At the time of the purchase, Bill Greehey, Valero’s board chairman and CEO, said the acquisition was a strategic fit for Valero’s refining network, projecting it would generate more than $108 million in annual net income.
“The refinery will also benefit from millions of dollars in synergies with our other Gulf Coast refineries as well as Valero’s significant expertise in sour crude processing and economies of scale in sour crude purchasing,” Greehey said at the time of the purchase. “As a result, this refinery’s tremendous earnings potential can finally be realized.”
Calling the St. Charles Parish location “a great refinery with unrealized potential,” Valero said it had throughout capacity of 185,000 barrels per day and a crude capacity of 155,000 barrels per day. About 74 percent of the refinery’s products are composed of gasoline, distillate and other light products.
The 1,000-acre site is in St. Charles Parish, along the Mississippi River. Valero owns and operates five docks on the river.
The refinery’s major process units were built in the early 1980s or later, making this refinery one of the newest in the United States. From 2000 through 2002, major upgrades included the construction of a large fluid catalytic cracking unit, alkylation unit and continuous catalytic reformer unit.
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