Summary
Valero Energy Corporation (VLO) reported net income attributable to stockholders of $2.1 billion for the year ended December 31, 2012, which was comparable to the prior year. However, this included $983 million in non-cash asset impairment losses, primarily related to the Aruba Refinery. Excluding these and other significant items, the company's operating income showed a favorable increase. The company's refining segment was the primary driver of profitability, benefiting from improved margins in the U.S. Mid-Continent and North Atlantic regions. These improvements were largely due to favorable crude oil price differentials (WTI vs. Brent) and supply disruptions in the North Atlantic. Conversely, the ethanol segment experienced a significant decline in operating income due to higher corn prices and market oversupply. Valero also announced plans to separate its retail business into a new company, CST Brands, Inc., through an 80% pro rata distribution to stockholders, expected in the second quarter of 2013.
Financial Highlights
50 data points| Operating Expenses | $133.35B |
| Operating Income | $5.04B |
| Interest Expense | $314.00M |
| Net Income | $2.08B |
| EPS (Basic) | $3.77 |
| EPS (Diluted) | $3.75 |
| Shares Outstanding (Basic) | 550.00M |
| Shares Outstanding (Diluted) | 556.00M |
Key Highlights
- 1Net income attributable to stockholders from continuing operations was $2.1 billion for 2012, consistent with 2011.
- 2The refining segment drove operating income growth, with U.S. Mid-Continent and North Atlantic regions showing significant margin improvements.
- 3Ethanol segment operating income decreased by $443 million in 2012 due to higher corn prices and ethanol oversupply.
- 4Valero plans to spin off its retail business into a new entity, CST Brands, Inc., distributing 80% of its shares to Valero stockholders.
- 5The Aruba Refinery operations were suspended in March 2012 and the company recorded an asset impairment loss of $983 million related to this facility.
- 6Valero actively repurchased shares, purchasing approximately $4.2 million worth of stock in Q4 2012, as part of ongoing stock purchase programs.
- 7The company declared and paid dividends, with the quarterly dividend increasing from $0.15 to $0.175 in 2012 and a $0.20 dividend declared for Q1 2013.