01—Abstract
Summary
Summary of the 10-K filed February 26, 2025. Cited figures are marked; the original filing is the authoritative source.
Valero Energy Corporation's 2024 10-K filing indicates a challenging year for its refining segment, with operating income significantly declining compared to 2023 due to lower gasoline and distillate margins, as well as reduced crude oil differentials and throughput volumes.
The Renewable Diesel and Ethanol segments also saw decreased operating income, primarily driven by lower product prices, although feedstock costs provided some offset. Despite these headwinds, Valero generated substantial operating cash flow, which was utilized for capital investments and returned to stockholders through share repurchases and dividends. The company continues to invest in its low-carbon fuels strategy, with significant capital deployed in renewable diesel and ethanol businesses.
Valero is also strategically positioned to capitalize on the growing demand for low-carbon transportation fuels, driven by government regulations and incentives in key markets. The company maintains a strong liquidity position and is managing its debt effectively. Looking ahead, Valero anticipates stable demand for its products, with typical seasonal patterns expected for gasoline and diesel, while jet fuel demand continues to improve.
02—Key points
Key Highlights
- Refining segment operating income decreased by $7.5 billion year-over-year, primarily due to lower refining margins and throughput volumes.
- Renewable Diesel segment operating income decreased by $345 million, mainly driven by lower product prices.
- Ethanol segment operating income decreased by $265 million, largely due to lower ethanol and co-product prices.
- The company generated $6.7 billion in cash flow from operations, utilizing it for $2.1 billion in capital investments and returning $4.3 billion to stockholders.
- Valero has invested $5.8 billion in its low-carbon fuels businesses, with ongoing evaluation of additional projects.
- Completed a Sustainable Aviation Fuel (SAF) project at the DGD Port Arthur Plant in Q4 2024.
- Maintains a strong liquidity position with $9.6 billion in liquidity as of December 31, 2024.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2024, Valero Energy kept $0.02.
- Revenue$129.88B100.0%
- Cost of revenue−$125.08B96.3%
- Gross profit$4.80B3.7%
- Operating costs−$1.05B0.8%
- Operating income$3.75B2.9%
- Interest, other & tax−$985.0M0.8%
- Net income$2.77B2.1%
Where FY2024 revenue went
$129.88B- Cost of revenue: $125.08B, 96% of revenue
- Net income: $2.77B, 2.1% of revenue
- Operating costs: $1.05B, 0.8% of revenue
- Interest, other & tax: $985.0M, 0.8% of revenue
Kept 2.1% as net incomeNet income $2.77B · 2.1%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2024filed February 26, 2025Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $129.88B$144.77B | −10.3% |
| Cost of Revenue | $125.08B$131.83B | −5.1% |
| Gross Profit | $4.80B$12.93B | −62.8% |
| Operating Income | $3.75B$11.86B | −68.3% |
| Interest Expense | $556.00M$592.00M | −6.1% |
| Net Income | $2.77B$8.84B | −68.6% |
| EPS (Basic) | $8.58$24.93 | −65.6% |
| EPS (Diluted) | $8.58$24.92 | −65.6% |
| Shares Outstanding (Basic) | 322.00M353.00M | −8.8% |
| Shares Outstanding (Diluted) | 322.00M353.00M | −8.8% |
05—Questions
Frequently Asked Questions
What were the main drivers of the decline in Valero's operating income in 2024?
The primary driver for the significant decrease in operating income was the Refining segment, which experienced lower gasoline and distillate margins, a decline in crude oil differentials, and reduced throughput volumes. The Renewable Diesel and Ethanol segments also contributed to the decline due to lower product prices.
How is Valero investing in the low-carbon fuels market?
Valero has invested $5.8 billion in its low-carbon fuels businesses, specifically in its renewable diesel and ethanol segments. The company continues to evaluate additional low-carbon projects and recently completed a SAF project at its DGD Port Arthur Plant.
What is Valero's current financial health and liquidity position?
Valero generated $6.7 billion in operating cash flow in 2024 and maintained a strong liquidity position with $9.6 billion available as of December 31, 2024. The company also managed its debt effectively, repaying $7.8 billion in debt and finance lease obligations.
What are Valero's expectations for demand and market conditions in 2025?
Valero anticipates stable demand for its products, with gasoline and diesel demand expected to follow typical seasonal patterns and jet fuel demand continuing to improve. The company expects refining capacity reductions to support high utilization rates, and crude oil differentials are anticipated to remain relatively stable, though potential geopolitical events could introduce volatility.
06—Continue