Valero Energy Corp. (VLO:NYSE)

Valero Energy Corp. announced that it intends to permanently shut down its Delaware City refinery due to financial losses caused by very poor economic conditions, significant capital spending requirements and high operating costs. The shutdown will affect approximately 550 employees at the plant. The company estimates the shutdown will reduce pre-tax operating expenses by approximately $450 million, including $125 million of non-cash costs, in 2010 and will reduce capital spending and turnaround costs by approximately $200 million through 2010. In addition, the company expects to receive after-tax cash flows in 2010 in the range of $600 million to $700 million from inventory sales assuming current prices and other cash benefits from discontinued operations.

Valero Energy Corp. reported unaudited consolidated earnings results for the third quarter and nine months ended September 30, 2009. For the quarter, the company reported net loss of CAD 629 million or CAD 1.12 per share on operating revenues of CAD 19,489 million compared to net income of CAD 1,152 million or CAD 2.20 per share on operating revenues of CAD 35,960 million for the same period last year. Operating loss was CAD 693 million compared to income of CAD 1,840 million for the same period last year. Loss before income tax expense was CAD 814 million compared to income of CAD 1,795 million for the same period last year. For the nine months, the company reported net loss of CAD 574 million or CAD 1.08 per share on operating revenues of CAD 51,238 million compared to net income of CAD 2,147 million or CAD 4.07 per share on operating revenues of CAD 100,545 million for the same period last year. Operating loss was CAD 503 million compared to income of CAD 3,470 million for the same period last year. Loss before income tax expense was CAD 574 million compared to income of CAD 3,280 million for the same period last year. Cash used in continuing operating activities was CAD 1,940 million compared to CAD 3,520 million for the same period last year.

Valero Energy Corp. reported unaudited consolidated earnings results for the third quarter and nine months ended September 30, 2009. For the quarter, the company reported net loss of $489 million or $0.87 per basic and diluted share on operating revenues of $19,489 million against net income of $1,152 million or $2.20 per basic share and $2.18 per diluted share on operating revenues of $35,960 million for the same period a year ago. Operating loss of $579 million compared to operating income of $1,840 million for the same period a year ago. Loss before income tax expense of $694 million compared to income before income tax expense of $1,795 million for the same period a year ago. Regarding cash flows, the company's capital spending was $521 million, of which $52 million was for turnaround and catalyst expenditures. For the nine months, the company reported net loss of $434 million or $0.81 per basic and diluted share on operating revenues of $51,238 million against net income of $2,147 million or $4.07 per basic share and $4.02 per diluted share on operating revenues of $100,545 million for the same period a year ago. Operating loss of $389 million compared to operating income of $3,470 million for the same period a year ago. Loss before income tax expense of $690 million compared to income before income tax expense of $3,280 million for the same period a year ago.