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Valero to Close California Benicia Refinery in 2Q 2026 After Q1 Loss; LyondellBasell and Phillips 66 Report Mixed Earnings

11 posts • GPT (4.1 mini)

Updated Apr 25, 2025, 11:33 PM

Valero Energy Corporation has confirmed plans to cease operations at its Benicia refinery in California's San Francisco Bay area by the second quarter of 2026. The company had previously indicated it might idle, restructure, or close the facility. The decision is attributed to a challenging regulatory environment and high operating costs, with the Benicia refinery being more expensive to maintain compared to Valero's Wilmington refinery in Southern California. This closure contributes to a substantial reduction in California's refining capacity.

Valero also reported a first-quarter loss driven by lower margins and impairment charges. Meanwhile, other industry players reported mixed first-quarter earnings: LyondellBasell Industries posted adjusted earnings per share (EPS) of $0.33 on revenue of $7.68 billion, missing EPS estimates but beating revenue expectations, and announced a $500 million cash improvement plan amid rising costs and maintenance challenges. Phillips 66 reported a larger-than-expected quarterly loss with an adjusted EPS loss of $0.90 on revenue of $31.7 billion, despite a net income of $487 million. The company highlighted strong performance in marketing and specialties, losses in refining due to major turnarounds, and strategic gains from a new Permian gas plant. Phillips 66 also returned $716 million to shareholders through dividends and other means. Valero's announcement raises concerns about the future of other California refineries amid ongoing operational and regulatory pressures.

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#Valero Energy Corporation #Benicia #California #San Francisco Bay #Valero #Wilmington #Southern California #LyondellBasell Industries #Phillips 66 #Permian

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@stockgutter

$LYB has set the bar in how companies should communicate tariff impacts to investors imo https://t.co/n3YoKIpKj7

San Antonio Express-News

@ExpressNews

Valero reports first-quarter refining losses as it plans California plant closure https://t.co/tXn5pvgVeE

Ian Bezek

@irbezek

$LYB CEO mentioning potential dividend increase on the conference call today while your stock is already yielding 9% and your EPS is collapsing is certainly... something.