SAN ANTONIO -- Valero Energy Corp. announced today that Joe Gorder, executive vice president and chief operating officer, has been named president and COO by the company's board of directors, effective Jan. 1, 2013.
As president and COO, Gorder will continue to be responsible for Valero's refining operations, as well as commercial operations in marketing, supply and transportation.
"This new title reflects Joe's commitment to excellence in all aspects of our business and his ongoing leadership in our operations," said Bill Klesse, currently chairman, chief executive officer and president of Valero. He will continue as chairman and CEO. "We thank him for his hard work and dedication to our company."
Gorder previously was chief commercial officer and president of Valero Europe. He oversaw all commercial trading and related activity for the company, including crude and feedstock supply and trading, products supply and trading, wholesale marketing, logistics operations, commercial business development, transportation and specialty products marketing. In addition, he was responsible for all business activity and operations of Valero's assets in the United Kingdom and Ireland.
Gorder also has served as Valero's executive vice president-marketing and supply, following tenure as senior vice president for corporate development and strategic planning.
Prior to joining Valero, Gorder served as vice president of business development for Ultramar Diamond Shamrock, and as director of commercial and industrial sales, assistant treasurer and director of information systems for Diamond Shamrock.
In other company news, Valero Energy recently reported net income of $674 million for third-quarter 2012 compared to net income attributable to Valero stockholders of $1.2 billion for third-quarter 2011. Third-quarter 2012 operating income was $1.3 billion versus $2 billion of operating income in third-quarter 2011.
"Even with lower margins than last year, we reported solid financial results," said Klesse. "Looking at the fourth quarter, gasoline margins have narrowed significantly, but distillate margins and sour crude discounts remain wide. U.S. demand for refined products continues to be weak, reflecting high unemployment and high prices, but exports remain strong. As we approach winter, U.S. inventories of refined products look favorable."
Valero's retail segment reported $41 million of operating income in third-quarter 2012 versus $97 million of operating income in third-quarter 2011. The decrease in operating income was mainly due to lower fuel margins and volumes in the United States and Canada plus a noncash asset impairment of $12 million.
"We are making progress on our plan to separate our retail business and unlock value for our shareholders," said Klesse. "In October, we submitted our request to the Internal Revenue Service for a private letter ruling on a tax-efficient distribution of our retail business to shareholders. Later this quarter, we expect to file a registration statement with the Securities & Exchange Commission. Given the typical timing of this process, we expect to complete the retail separation late in the first quarter or early in the second quarter of 2013."
San Antonio-based Valero Energy Corp., through its subsidiaries, is an international manufacturer and marketer of transportation fuels, other petrochemical products and power. Assets include 15 petroleum refineries with a combined throughput capacity of approximately 2.8 million barrels per day, 10 ethanol plants with a combined production capacity of 1.2 billion gallons per year, and a 50-megawatt wind farm. Approximately 6,800 retail and branded wholesale outlets carry the Valero, Diamond Shamrock, Shamrock and Beacon brands in the United States and the Caribbean; Ultramar in Canada; and Texaco in the United Kingdom and Ireland.