Summary
Valero Energy Corporation (VLO) reported net income attributable to stockholders of $2.4 billion for 2019, a decrease from $3.1 billion in 2018. This decline was primarily driven by a $1.1 billion decrease in the Refining segment's adjusted operating income, largely due to lower discounts on crude oil and feedstocks, and reduced throughput volumes, partially offset by improved distillate margins. The Ethanol segment also saw a decrease in adjusted operating income due to higher corn prices and operating expenses, despite higher ethanol prices. In contrast, the Renewable Diesel segment experienced a significant increase in adjusted operating income, driven by higher sales volumes and the benefit from the blender's tax credit. For the full year 2019, Valero generated $5.5 billion in cash from operations, which, along with other financing activities, funded significant capital investments, stock repurchases, and dividend payments. The company's liquidity remained strong, with $7.8 billion in total liquidity at year-end 2019. Looking ahead to 2020, Valero anticipates improving distillate margins due to anticipated increases in global demand and compliance with new IMO sulfur specifications for bunker fuel. However, concerns remain regarding potential impacts from global economic conditions, including the coronavirus outbreak, and the ongoing developments related to Brexit.
Financial Highlights
51 data points| Revenue | $108.32B |
| Cost of Revenue | $103.55B |
| Gross Profit | $4.78B |
| Operating Income | $3.84B |
| Interest Expense | $454.00M |
| Net Income | $2.42B |
| EPS (Basic) | $5.84 |
| EPS (Diluted) | $5.84 |
| Shares Outstanding (Basic) | 413.00M |
| Shares Outstanding (Diluted) | 414.00M |
Key Highlights
- 1Net income attributable to Valero stockholders decreased to $2.4 billion in 2019 from $3.1 billion in 2018, primarily due to weaker refining segment performance.
- 2The Refining segment's adjusted operating income declined by $1.1 billion, driven by lower feedstock discounts and throughput volumes, partially offset by better distillate margins.
- 3The Renewable Diesel segment saw a substantial increase in adjusted operating income, primarily due to higher sales volumes and increased blender's tax credits.
- 4Valero generated $5.5 billion in cash flow from operations in 2019, demonstrating strong operational cash generation.
- 5The company maintained robust liquidity, with $7.8 billion in total liquidity available at the end of 2019.
- 6Valero returned capital to shareholders through $1.5 billion in dividends and $777 million in stock repurchases during 2019.
- 7The company expects improved distillate margins in 2020 due to increased global demand and IMO 2020 regulations.