Summary
In 2009, Valero Energy Corporation (VLO) navigated a challenging economic environment, reporting a net loss of $1.98 billion ($3.67 per share) compared to a net loss of $1.13 billion ($2.16 per share) in 2008. This deterioration was largely driven by a significant pre-tax loss of $1.9 billion associated with the permanent shutdown of its Delaware City Refinery, alongside asset impairment charges totaling $230 million for continuing operations. Despite these headwinds, the company's refining segment saw improved gasoline margins, while ethanol operations, bolstered by acquisitions, contributed positively with $165 million in operating income. Financially, Valero took steps to bolster its liquidity by issuing $1 billion in notes and raising approximately $800 million through a common stock offering. The company also saw a significant reduction in income tax expense in 2009. While the company faced headwinds from lower refining margins and a temporary shutdown of its Aruba refinery, its diversified operations, including a growing ethanol segment and retail presence, provided some resilience. Investors should note the company's strategic focus on managing costs and capital expenditures amidst continued economic uncertainty and evolving regulatory landscapes.
Financial Highlights
46 data points| Operating Expenses | $64.52B |
| Operating Income | $83.00M |
| Interest Expense | $520.00M |
| Net Income | -$1.98B |
| EPS (Basic) | $-3.67 |
| EPS (Diluted) | $-3.67 |
| Shares Outstanding (Basic) | 541.00M |
| Shares Outstanding (Diluted) | 541.00M |
Key Highlights
- 1Valero reported a net loss of $1.98 billion ($3.67 per share) for 2009, a worsening from a net loss of $1.13 billion ($2.16 per share) in 2008.
- 2The company recorded a significant pre-tax loss of $1.9 billion related to the permanent shutdown of its Delaware City Refinery in Q4 2009.
- 3Asset impairment losses of $230 million were recorded for continuing operations in 2009 due to unfavorable refining industry fundamentals.
- 4The ethanol segment, acquired in 2009, contributed positively with $165 million in operating income.
- 5Valero raised capital through a $1 billion note issuance in March 2009 and a $799 million net proceeds common stock offering in June 2009.
- 6Refining throughput margins decreased by $5.25 per barrel compared to 2008, primarily due to lower distillate margins and narrowing sour crude oil differentials.
- 7The Aruba refinery was temporarily shut down in July 2009 due to uneconomical operating conditions.