Summary
Valero Energy Corporation (VLO) reported a significant recovery in 2021 compared to the pandemic-affected 2020, driven by increased demand and market prices for its refined petroleum products. The company achieved a net income of $930 million, a substantial improvement from a net loss in the prior year. This recovery was bolstered by strong performance across all segments, particularly Refining, which saw a significant increase in margins and throughput volumes. The company continues to invest in its low-carbon fuels business, specifically renewable diesel, with expansions to its Diamond Green Diesel (DGD) plant underway. Valero also highlighted its robust liquidity position with $9.3 billion in total liquidity as of December 31, 2021, and successful debt reduction efforts throughout the year. Despite facing challenges like Winter Storm Uri and Hurricane Ida, Valero demonstrated operational resilience and a commitment to returning capital to shareholders through dividends.
Financial Highlights
49 data points| Revenue | $113.98B |
| Cost of Revenue | $110.85B |
| Gross Profit | $3.13B |
| Operating Income | $2.13B |
| Interest Expense | $603.00M |
| Net Income | $930.00M |
| EPS (Basic) | $2.27 |
| EPS (Diluted) | $2.27 |
| Shares Outstanding (Basic) | 407.00M |
| Shares Outstanding (Diluted) | 407.00M |
Key Highlights
- 1Valero Energy Corporation returned to profitability in 2021, reporting a net income of $930 million, a significant turnaround from a net loss in 2020.
- 2Refining segment margins and throughput volumes saw substantial increases, contributing significantly to the improved financial performance.
- 3The Renewable Diesel segment, through its joint venture DGD, experienced growth in sales volumes and margins, with ongoing expansions to increase production capacity.
- 4The company generated $5.9 billion in operating cash flow in 2021, enabling it to fund $2.5 billion in capital investments and return $1.6 billion to stockholders via dividends.
- 5Valero successfully reduced its long-term debt by $1.3 billion during 2021 through debt reduction and refinancing transactions.
- 6Total liquidity stood strong at $9.3 billion as of December 31, 2021, providing ample financial flexibility.
- 7The company demonstrated resilience by navigating events like Winter Storm Uri and Hurricane Ida, which caused temporary disruptions but had a manageable impact on overall results.