(Reuters) -U.S. refiner Valero Energy ( VLO ) surpassed Wall Street expectations for third-quarter profit on Thursday, helped by a rebound in refining margins.

Refining margins have rebounded from multi-year lows in 2024 after two years of bumper profits, as refiners cashed in on supply shortages caused by geopolitical tensions in Ukraine.

U.S. refinery margins, measured by the 3-2-1 crack spread, in the third quarter rose nearly 29% on average from a year earlier, helped by strong diesel and gasoline margins on the back of robust demand and low inventories.

The company said its average throughput volume rose to 3.1 million barrels per day in the quarter, from 2.9 million bpd a year earlier.

Valero's refining margin per barrel of throughput was up at $13.14 in the quarter, compared with $9.09 a year earlier.

The company, which kicked off the earnings season for U.S. refiners, posted an adjusted profit of $3.66 per share for the three months ended September 30, compared with analysts' expectations of $3.05, according to data compiled by LSEG.