Refiners have been riding a wave of favorable pricing and demand as pandemic-era closings boosted margins. Alternating periods of higher demand for products have also helped, with jet fuel recently sprinting higher as diesel fell off.
"It's looking like another really strong quarter for U.S. refiners and their balance sheets are in great shape, but in the second quarter things are really starting to come down," said Matthew Blair, refining analyst at Tudor Pickering Holt and Co. Valero Energy, the second-largest U.S. refiner by capacity, kicks off earnings on Wednesday with per share profit expected to more than triple to $7.23, based on the mean estimate of 17 analysts compiled by Refinitiv, compared to $2.31 per share a year ago.is forecast to show a per share profit of $5.71 compared to $1.49 a year ago, while Phillips 66 could deliver a $3.60 per share, compared to $1.32 a year ago, according to Refinitiv. Both are scheduled to report in early May.