Summary
Valero Energy Corporation (VLO) reported strong performance in its 2017 10-K filing, driven by a significant income tax benefit stemming from the Tax Cuts and Jobs Act of 2017, which provided a $1.9 billion boost to net income. Excluding this one-time benefit, adjusted net income attributable to stockholders was $2.2 billion, an increase from $1.7 billion in the prior year. The company's refining segment was the primary driver of this improvement, with adjusted operating income rising by $942 million due to higher refining margins and increased throughput volumes. The company's operations are diversified across refining, ethanol production, and logistics through its majority-owned master limited partnership, Valero Energy Partners LP (VLP). The refining segment processed an average of 2.9 million barrels per day in 2017, leveraging a diverse feedstock mix. The ethanol segment experienced a decline in adjusted operating income due to lower product prices. VLP saw an increase in adjusted operating income, primarily driven by new terminals and pipeline systems acquired during the year. Valero demonstrated robust cash flow generation, with operations providing $5.5 billion in cash. This strong liquidity supported capital investments of $2.3 billion, share repurchases totaling $1.4 billion, and dividend payments of $1.2 billion. The company also maintained a solid financial position with significant liquidity available under its credit facilities.
Financial Highlights
52 data points| Revenue | $93.98B |
| Cost of Revenue | $89.47B |
| Gross Profit | $4.50B |
| Operating Income | $3.56B |
| Interest Expense | $468.00M |
| Net Income | $4.07B |
| EPS (Basic) | $9.17 |
| EPS (Diluted) | $9.16 |
| Shares Outstanding (Basic) | 442.00M |
| Shares Outstanding (Diluted) | 444.00M |
Key Highlights
- 1Net income attributable to Valero stockholders was $4.1 billion in 2017, boosted by a $1.9 billion income tax benefit from Tax Reform.
- 2Adjusted net income attributable to Valero stockholders increased to $2.2 billion in 2017 from $1.7 billion in 2016, driven by improved refining segment performance.
- 3The refining segment's adjusted operating income increased by $942 million, primarily due to higher refining margins and increased throughput volumes.
- 4Valero generated $5.5 billion in cash flow from operations in 2017, supporting significant capital investments ($2.3 billion), share repurchases ($1.4 billion), and dividends ($1.2 billion).
- 5The company's refining system processed an average of 2.9 million barrels per day, with strong performance across its diverse refinery locations in the U.S., Canada, and the U.K.
- 6Valero Energy Partners LP (VLP) reported an increase in adjusted operating income, attributed to acquisitions of new terminals and pipeline systems.
- 7The company maintained investment-grade credit ratings, indicating a stable financial position and access to capital markets.