April 30, 2026 [Reuters]- U.S. refiner Valero Energy surpassed Wall Street expectations for first-quarter adjusted profit on ​Thursday, helped by strength in its refining segment, margins and throughput ‌volumes.

Diesel and jet fuel margins climbed sharply in the first quarter after U.S.-Israeli attacks on Iran disrupted Middle Eastern supply, pushing finished fuel prices up faster than crude oil costs ​and widening profit margins for refiners.

U.S. refiners, less dependent on Middle ​Eastern crude, stand to benefit from global fuel shortfalls by expanding ⁠international sales from the U.S. Gulf Coast hub.

Quarterly U.S. refinery margins, ​measured by the 3-2-1 crack spread , were up about 73% on an average ​in the first quarter from a year earlier.

Valero said it is progressing with its FCC Unit optimization project at the St. Charles Refinery that will enable the refinery ​to increase the yield of high value products.

The project is expected ​to cost $230 million and begin operations in the third quarter.

The company’s refining segment reported operating earnings of $1.8 ‌billion, ⁠compared with a loss of $530 million a year earlier.

Its refining margin per barrel of throughput was $14.90 in the quarter, compared with $9.78 a year earlier, while average throughput volumes rose 3.6% to 2.9 million barrels per day ​in the quarter.

Valero ​posted renewable diesel ⁠operating income at $139 million, compared with a loss of $141 million last year.

At the ethanol segment, operating income rose ​to $90 million from $20 million a year earlier.

Rival Phillips 66 ​posted a surprise ⁠first quarter profit on Wednesday, helped by higher refining margins and capacity utilization.

San Antonio, Texas-based Valero reported an adjusted profit of $4.22 per share for the three months ⁠ended March ​31, compared with analysts’ expectations of $3.16 per ​share, according to data compiled by LSEG.