In yet another indication of rebounding consumer demand, San Antonio-based companies Valero and NuStar Energy have posted sunny profit earnings for their second quarter of 2021.
After a year of record low fuel consumption, demand is blossoming as vaccinations continue, governments lift pandemic restrictions, and tourists and commuters get back on the road.
Along with stronger demand, prices at the pump have also risen. The price of gas in San Antonio has risen by a little more than a dollar since this time last year to $2.79, AAA Texas reported Thursday, and it continues to rise; the price is 5 cents higher than it was last week.
Still, San Antonio boasted the least expensive pump prices of any major city in Texas.
NuStar, the San Antonio-based petroleum and pipeline company, reported Thursday it had earned $63 million in net income, or 25 cents per share, for the second quarter ended June 30, more than doubling what it made in the same quarter last year. Total revenue topped slightly more than $427 million.
“Product demand has continued to improve as more Americans have returned to normal day-to-day activities,” NuStar’s President and CEO Brad Barron said in an earnings call with investors.
The company is still $3.48 billion in debt, which motivated it to sell eight terminal locations on the East Coast for $250 million in a deal announced last week.
“While selling assets is never easy, this transaction is a win-win for all parties, as we’re exiting non-core assets at an attractive valuation,” Barron said.
Valero, the world’s largest independent petroleum refiner, last week reported it had made $162 million, or 39 center per share, in the second quarter. Revenue more than doubled to $27.7 billion compared to the $10.4 billion generated in the second quarter last year. For much of last year, the energy giant was plagued by the same depressed demand that sagged NuStar’s earnings.
Valero’s results rebounded from the first quarter, when the historic winter storm in February contributed to a net loss of $704 million. The $579 million the company paid in what it called “excess energy costs” were responsible for the lion’s share of that quarter’s losses.
Disclosure: Valero and NuStar Energy are financial supporters of the San Antonio Report. For a full list of business members, click here.