Valero Energy, an international manufacturer and marketer of transportation fuels, other petrochemical products, has posted a 44% fall in net income to $674m for the third quarter of 2012, compared to $1.2bn for the same period in 2011.
The company noted that the 44% decline in profit was mainly due to the closing of its Aruba refinery.
Valero Energy reported a 3% rise in revenue to $34.7bn, as compared to $33.71bn in the same quarter last year.
Valero Energy chairman and CEO Bill Klesse said even with lower margins than last year, the company reported solid financial results.
"During the third quarter, we elected to reorganize the Aruba refinery into a crude oil and refined products terminal, did major-reliability work at the Meraux refinery, and continued to pursue the separation of our retail business," Klesse added.
Valero’s retail segment reported $41m of operating income in the third quarter of 2012, compared to $97m in the third quarter of 2011.
The decrease in operating income was attibuted to lower fuel margins and volumes in the US and Canada plus a non-cash asset impairment of $12m.
The company is looking to separate their retail business and unlock value for their shareholders.
"Later this quarter, we expect to file a registration statement with the Securities and Exchange Commission," Klesse said.
"Given the typical timing of this process, we expect to complete the retail separation late in the first quarter or early in the second quarter of 2013."
Valero Energy is an independent refining and marketing company, which owns and operates refineries in the US and Canada.
The company sells branded and unbranded refined products through a network of 6,800 retail and wholesale branded outlets in the UK, Canada and Aruba.
It operates Valero and Diamond Shamrock gas stations and convenience stores.