Valero expects $605M charge for Aruba refinery closure

SAN ANTONIO — Valero Energy Corp. said that it will report a loss in the first quarter after taking a charge of $605 million to close an oil refinery in Aruba. Valero said charges related to the refinery closure will cost it about $1.10 per share, and it expects to report a loss of 75 to 85 cents per share for the first quarter. Without that charge, its profit would be 25 to 35 cents per share.

Analysts expected Valero to report a profit of 26 cents per share, according to Fact Set. The company is scheduled to report first-quarter results on May 1.

Valero said on March 19 that it will stop producing gasoline and other fuels at its refinery in Aruba because of weak energy demand and high oil prices.

Valero, which operates 16 refineries around the world, said Monday that the Aruba facility will close at the end of the month. Refineries have been hit hard by the rising price of oil, and Valero said the Aruba refinery was no longer profitable.

Shares of Valero fell 78 cents, or 3.2 percent, to close at $23.36. They rose 18 cents to $23.54 in aftermarket trading.

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