Summary
Valero Energy Corporation (VLO) reported net income attributable to stockholders of $2.7 billion ($4.97 per diluted share) for the year ended December 31, 2013. This represents a significant increase compared to the previous year, primarily driven by the absence of substantial asset impairment losses recorded in 2012, as well as a non-taxable gain from the disposition of its retained interest in CST Brands, Inc. However, excluding these one-time items, the company experienced a decline in operating income, largely due to lower refining segment operating income, which was impacted by compressed refining margins across its various regions. The company also completed the separation of its retail business through a spin-off of CST Brands, Inc. in May 2013, thereby exiting the retail segment. The ethanol segment showed a strong performance, with operating income increasing significantly due to higher gross margins and production volumes, driven by lower corn prices and higher ethanol prices. Valero also announced the initial public offering of Valero Energy Partners LP (VLP) in December 2013, creating a midstream master limited partnership to support its refining operations. The company ended the year with a robust cash position, enabling significant capital expenditures, debt repayments, and shareholder returns through dividends and share repurchases.
Financial Highlights
49 data points| Operating Expenses | $134.12B |
| Operating Income | $3.96B |
| Interest Expense | $365.00M |
| Net Income | $2.72B |
| EPS (Basic) | $4.99 |
| EPS (Diluted) | $4.97 |
| Shares Outstanding (Basic) | 542.00M |
| Shares Outstanding (Diluted) | 548.00M |
Key Highlights
- 1Net income attributable to stockholders of $2.7 billion ($4.97 per diluted share) for the year ended December 31, 2013, an increase from $2.1 billion ($3.75 per diluted share) in 2012, primarily due to the absence of asset impairment losses and a gain on disposition of retained interest in CST Brands.
- 2Refining segment operating income decreased by $233 million to $4.2 billion in 2013, primarily due to lower refining margins and higher biofuel credit costs, partially offset by increased distillate margins from new hydrocracker units.
- 3Ethanol segment operating income saw a substantial increase of $538 million to $491 million in 2013, driven by lower corn prices, higher ethanol prices, and increased production volumes.
- 4Completed the separation of its retail business by spinning off 80% of CST Brands, Inc. on May 1, 2013, exiting the retail segment.
- 5Valero Energy Partners LP (VLP) completed its initial public offering in December 2013, raising $369 million in net proceeds.
- 6The company repurchased approximately $8.28 million of its common stock during the fourth quarter of 2013, with $2.6 billion remaining under an ongoing share repurchase program.
- 7Dividends per common share increased from $0.65 in 2012 to $0.85 in 2013, reflecting the company's commitment to returning capital to shareholders.