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VLO · Valero Energy

50 filings

10-Q

VLO 10-Q Quarterly Reports

Valero Energy - 50 quarterly reports

Filing record · 2016–202610-K1110-Q338-K138

VLO filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 138 current reports (8-K) between 2016 and 2026.

  1. FY2016 annual report10-K · Feb ’17Feb ’17
  2. Leadership change8-K · Dec ’19Dec ’19
  3. Material agreement8-K · Nov ’21Nov ’21
  4. Leadership change8-K · Oct ’25Oct ’25
  1. 2026-Q3

    Valero Energy Quarterly Report for Q3 Ended Sep 30, 2026

    Valero Energy Corporation's third-quarter 2026 Form 10-Q shows a sharp earnings rebound. Net income attributable to Valero Energy Corporation stockholders was $6.8 billion for the third quarter of 2026, compared with $1.1 billion a year earlier, and $11.8 billion for the first nine months of 2026, versus $1.2 billion. The company attributes this to strong refining margins, driven by resilient demand and constrained global supply, along with higher Renewable Diesel and Ethanol results. Operating income for the quarter was $9.1 billion, and Refining segment margin rose $7.0 billion year over year. Revenues were $46.1 billion for the quarter and $123.0 billion for the nine months. Cash flow and capital returns were also substantial. Operating cash flow was $13.9 billion for the nine months, and the company returned $7.3 billion to stockholders through share repurchases and dividends. Cash and cash equivalents rose to $9.8 billion on the balance sheet, and total liquidity was $14.7 billion. In October 2026, the Board authorized a new buyback of up to $10.0 billion, in addition to the $3.0 billion remaining under the July 2026 program, and declared a quarterly dividend of $1.20 per share. The filing also flags several risks. The Port Arthur Refinery suffered a fire in March 2026 that forced a full shutdown, with insurance expected to cover a substantial portion of repair costs. The company faces lawsuits, including a proposed class action, and has received proposed regulatory citations and penalties that it intends to contest. The Benicia Refinery ceased refining operations by April 2026, and its decommissioning costs are now reported within corporate expenses. Working capital also shifted materially, with receivables and accounts payable both rising sharply over the nine months.

    Oct 28, 2026
  2. 2026-Q2

    Valero Energy Quarterly Report for Q2 Ended Jun 30, 2026

    Valero Energy Corporation (VLO) reported strong financial results for the six months ended June 30, 2026, driven by robust demand for petroleum-based transportation fuels amidst constrained global supply, leading to significantly higher refining margins. Net income attributable to Valero stockholders surged to $5.0 billion for the period, a substantial increase from $119 million in the prior year. This performance was bolstered by strong operational execution across its Refining, Renewable Diesel, and Ethanol segments. The company generated significant operating cash flow of $7.0 billion, enabling substantial returns to shareholders through share repurchases and dividends, totaling $3.6 billion. Valero also strengthened its balance sheet by issuing $850 million in senior notes and ended the period with $12.7 billion in total liquidity. Despite some operational disruptions, including a fire at the Port Arthur Refinery and the phased idling of the Benicia Refinery, Valero demonstrated resilience, with a positive outlook for continued strong demand in its key markets.

    Jul 30, 2026
  3. 2026-Q1

    Valero Energy Quarterly Report for Q1 Ended Mar 31, 2026

    Valero Energy Corporation (VLO) reported a strong first quarter for 2026, with net income attributable to Valero stockholders of $1.3 billion, a significant turnaround from a net loss of $595 million in the first quarter of 2025. This improvement was driven by robust global demand for petroleum-based transportation fuels, coupled with constrained worldwide supply, which led to higher refining margins. The company's financial performance benefited from strong demand for diesel and an increase in crude oil differentials. The Renewable Diesel segment also showed improvement due to higher product prices and increased clean fuel production credits. However, gasoline margins experienced a decrease, and the company is managing the impact of a fire at its Port Arthur Refinery, which has resumed operations at reduced capacity. Valero generated substantial operating cash flow of $1.4 billion in the quarter and ended with $5.9 billion in cash, cash equivalents, and restricted cash, indicating a healthy liquidity position. The company also continued its share repurchase program and paid dividends, demonstrating a commitment to returning value to shareholders.

    Apr 30, 2026
  4. 2025-Q3

    Valero Energy Quarterly Report for Q3 Ended Sep 30, 2025

    Valero Energy Corporation (VLO) reported solid financial performance for the third quarter of 2025, with net income attributable to stockholders reaching $1.1 billion, a significant increase from $364 million in the same period of the previous year. This improvement was driven by a substantial rise in operating income, largely due to stronger performance in the Refining segment, which benefited from higher gasoline and distillate margins and increased throughput volumes. Despite a notable $1.1 billion asset impairment loss related to its California operations, the company maintained robust cash flow generation, amounting to $3.8 billion for the first nine months of 2025. Valero also actively managed its capital structure, issuing new debt and returning capital to shareholders through share repurchases and dividends. The company ended the period with a strong liquidity position of $9.9 billion, providing ample financial flexibility for its ongoing operations and strategic initiatives.

    Oct 23, 2025
  5. 2025-Q2

    Valero Energy Quarterly Report for Q2 Ended Jun 30, 2025

    Valero Energy Corporation (VLO) reported a decrease in net income attributable to stockholders for the second quarter and the first six months of 2025 compared to the prior year, primarily driven by a significant asset impairment loss of $1.1 billion related to its California refining operations and a decline in segment margins, particularly in Renewable Diesel and Ethanol. Despite lower reported net income, the company generated substantial operating cash flow of $1.9 billion in the first six months of 2025. Valero also maintained a strong liquidity position, with total liquidity of $9.6 billion as of June 30, 2025, supported by cash and cash equivalents and available credit facilities. The company continued its capital allocation strategy, investing in its business, repurchasing shares, and paying dividends, while also managing its debt obligations.

    Jul 24, 2025
  6. 2025-Q1

    Valero Energy Quarterly Report for Q1 Ended Mar 31, 2025

    Valero Energy Corporation (VLO) reported a net loss attributable to stockholders of $595 million for the first quarter of 2025, a significant decrease from a net income of $1.2 billion in the same period of the prior year. This downturn was largely driven by an $1.1 billion asset impairment loss recognized in the Refining segment related to its California operations, specifically the Benicia and Wilmington refineries, coupled with weaker refining and renewable diesel margins. Despite the overall loss, the company generated $952 million in cash flow from operations and maintained substantial liquidity of $9.7 billion. The company also strategically issued $650 million in senior notes. While the refining segment experienced a substantial operating loss due to the impairment and challenging margins, Valero continues to navigate market dynamics and manage its capital resources effectively. Investors should monitor the impact of the California asset impairment, ongoing margin pressures, and the company's strategy in the renewable fuels sector.

    Apr 24, 2025
  7. 2024-Q3

    Valero Energy Quarterly Report for Q3 Ended Sep 30, 2024

    Valero Energy Corp. reported a significant decrease in net income for the third quarter and the first nine months of 2024 compared to the same periods in 2023. This decline is primarily attributed to a substantial drop in operating income, largely driven by lower product margins in the Refining segment, particularly for gasoline and diesel. The company experienced reduced profitability across all its operating segments (Refining, Renewable Diesel, and Ethanol) due to lower product prices and, in some cases, declining margins, although feedstock costs also decreased, providing some offset. Despite the lower profitability, Valero generated $5.6 billion in operating cash flow for the first nine months of 2024. The company utilized this cash and existing liquidity to invest in its business, repay debt, and return $3.7 billion to stockholders through share repurchases and dividends. As of September 30, 2024, Valero maintained a strong liquidity position with approximately $10.3 billion available. The company remains focused on managing its operations through volatile market conditions and continues to evaluate strategic alternatives for its California operations due to regulatory uncertainties.

    Oct 30, 2024
  8. 2024-Q2

    Valero Energy Quarterly Report for Q2 Ended Jun 30, 2024

    Valero Energy Corp/TX (VLO) reported its second quarter and first six months of 2024 financial results, showing a significant decrease in net income compared to the prior year. For the three months ended June 30, 2024, net income attributable to Valero stockholders was $880 million ($2.71 per share), a substantial drop from $1.9 billion ($5.41 per share) in the same period of 2023. This decline was primarily driven by lower operating income across all segments, particularly in Refining, due to reduced margins for gasoline and distillates, and lower crude oil differentials. Despite the year-over-year decrease in profitability, the company's operations generated $4.3 billion in cash flow from operating activities for the first six months of 2024. Valero utilized this strong cash generation to invest $1.1 billion in capital expenditures, return $2.8 billion to stockholders through share repurchases and dividends, and reduce its outstanding debt. As of June 30, 2024, the company maintained a healthy liquidity position of $10.1 billion, indicating financial stability to meet ongoing obligations.

    Jul 25, 2024
  9. 2024-Q1

    Valero Energy Quarterly Report for Q1 Ended Mar 31, 2024

    Valero Energy Corporation (VLO) reported a significant decrease in net income attributable to stockholders for the first quarter of 2024, down to $1.245 billion ($3.75 per share) from $3.067 billion ($8.30 per share) in the prior year's comparable period. This decline was primarily driven by a substantial reduction in operating income, largely stemming from lower refining margins, particularly for distillates and gasoline, as well as a decrease in crude oil differentials and throughput volumes. Despite the year-over-year earnings drop, Valero generated $1.846 billion in cash flow from operating activities during the quarter. The company returned $1.4 billion to shareholders through stock repurchases and dividends, while also reducing its outstanding debt. Valero ended the quarter with $4.9 billion in cash and cash equivalents and maintained strong liquidity of $10.0 billion, indicating financial stability despite the challenging operating environment in the refining segment.

    Apr 25, 2024
  10. 2023-Q3

    Valero Energy Quarterly Report for Q3 Ended Sep 30, 2023

    Valero Energy Corporation (VLO) reported solid financial results for the third quarter and the first nine months of 2023, despite a slight year-over-year decrease in net income attributable to stockholders. The company generated substantial operating cash flow, driven by strong demand for its products and favorable refining margins. Valero returned significant capital to shareholders through stock repurchases and dividends while also managing its debt. The company's diversified business segments, including Refining, Renewable Diesel, and Ethanol, all contributed to financial performance, with notable operational improvements in the Renewable Diesel and Ethanol segments. The outlook suggests continued demand for refined products and stable renewable diesel margins, though crude oil markets may experience increased volatility due to geopolitical events. The company maintains a strong liquidity position and remains committed to capital investments in its low-carbon businesses, aligning with its emissions reduction targets. Investors should note potential regulatory uncertainties, particularly in California, which could impact operations.

    Oct 26, 2023
  11. 2023-Q2

    Valero Energy Quarterly Report for Q2 Ended Jun 30, 2023

    Valero Energy Corporation (VLO) reported a notable decline in financial performance for the second quarter and first six months of 2023 compared to the same periods in 2022. Net income attributable to Valero stockholders decreased from $4.7 billion to $1.9 billion in Q2 and from $5.6 billion to $5.0 billion in the first six months. This reduction was primarily driven by a significant decrease in operating income, largely due to lower refining margins, particularly for gasoline and distillates, despite an increase in crude oil discounts. Despite the overall decline, the Renewable Diesel segment showed strong performance, with operating income increasing significantly due to lower feedstock costs and higher sales volumes, aided by the new DGD Port Arthur Plant. The Ethanol segment also saw improved operating income, driven by lower corn prices and higher production volumes. The company maintained a strong liquidity position with $10.1 billion at the end of June 2023 and continued to return capital to shareholders through share repurchases and dividends.

    Jul 27, 2023
  12. 2023-Q1

    Valero Energy Quarterly Report for Q1 Ended Mar 31, 2023

    Valero Energy Corporation (VLO) reported a strong first quarter of 2023, with net income attributable to stockholders soaring to $3.1 billion, a significant increase from $905 million in the same period last year. This performance was driven by robust demand for petroleum-based transportation fuels and a favorable supply-demand imbalance, which supported strong refining margins. The company generated $3.2 billion in operating cash flow and increased its cash and cash equivalents to $5.5 billion, while maintaining $10.8 billion in total liquidity. Strategic investments were made in the business, with $524 million allocated to capital expenditures, including significant contributions to its low-carbon initiatives. Valero also returned substantial value to shareholders, with $1.8 billion deployed towards stock repurchases and dividend payments. The company's diversified operations, including its Refining, Renewable Diesel, and Ethanol segments, all contributed positively to the strong financial results, with the Refining segment showing a particularly substantial improvement in operating income.

    Apr 27, 2023
  13. 2022-Q3

    Valero Energy Quarterly Report for Q3 Ended Sep 30, 2022

    Valero Energy Corporation (VLO) reported strong financial results for the third quarter and first nine months of 2022, driven by a favorable market environment characterized by recovering demand for petroleum-based transportation fuels and constrained global supply. This imbalance led to significantly improved refining margins, contributing to substantial increases in revenue and net income compared to the prior year periods. The company generated significant operating cash flow, which was utilized for capital investments, returning capital to stockholders through share repurchases and dividends, and debt reduction. The company's Renewable Diesel segment also showed growth, benefiting from increased sales volumes and higher prices, although this was partially offset by rising feedstock costs. The Ethanol segment experienced increased margins due to higher ethanol and co-product prices, despite facing higher corn prices and operating expenses. Valero maintains a strong liquidity position and expects continued favorable market conditions in the near term, supporting its outlook.

    Oct 26, 2022
  14. 2022-Q2

    Valero Energy Quarterly Report for Q2 Ended Jun 30, 2022

    Valero Energy Corporation (VLO) reported a strong financial performance for the second quarter and the first six months of 2022, driven by a significant increase in refining margins amidst a constrained global supply of petroleum-based transportation fuels and robust demand. Net income attributable to Valero stockholders surged to $4.7 billion for the quarter and $5.6 billion for the six-month period, a substantial improvement from the prior year. This performance was largely fueled by the Refining segment, which saw its operating income rise dramatically due to higher gasoline and distillate margins and increased throughput volumes. The company generated substantial operating cash flow, allowing for significant capital investments and substantial returns to stockholders through dividends and share repurchases. Valero also actively managed its debt, reducing its overall debt by $1.05 billion in the first half of 2022. Despite positive operational and financial results, the company acknowledges ongoing uncertainties in the global energy markets, including the impact of the Russia-Ukraine conflict and inflation, which could affect future performance.

    Jul 28, 2022
  15. 2022-Q1

    Valero Energy Quarterly Report for Q1 Ended Mar 31, 2022

    Valero Energy Corporation (VLO) reported a significant turnaround in its financial performance for the first quarter of 2022 compared to the same period in 2021. The company posted a net income attributable to Valero stockholders of $905 million, a substantial improvement from a net loss of $704 million in Q1 2021. This turnaround was primarily driven by a strong recovery in refining margins, fueled by increased demand for refined petroleum products and higher crude oil prices, exacerbated by geopolitical events impacting global supply. The company's operations generated $588 million in cash flow, which was utilized for capital investments, debt reduction, and shareholder returns through dividends and stock repurchases. Despite a decrease in cash and cash equivalents due to these activities and debt repayment, Valero maintained robust liquidity. The outlook for the second quarter suggests sustained demand for gasoline and diesel, with stable margins expected for renewable diesel and potential improvement for ethanol.

    Apr 28, 2022
  16. 2021-Q3

    Valero Energy Quarterly Report for Q3 Ended Sep 30, 2021

    Valero Energy Corporation (VLO) reported a significant turnaround in its financial performance for the third quarter of 2021, achieving net income of $463 million, a stark contrast to the $464 million net loss in the same period of the prior year. This improvement was driven primarily by a substantial increase in operating income, fueled by stronger refining margins, particularly for gasoline and distillates, and increased throughput volumes. While the nine-month period still showed a net loss of $79 million, this was a considerable improvement from the $1.1 billion loss in the first nine months of 2020, indicating a positive recovery trajectory. The company's liquidity remains robust, with $8.5 billion in total liquidity as of September 30, 2021, supported by strong operational cash flow generation. Despite significant capital investments, dividend payments, and debt redemptions, Valero managed to increase its cash and cash equivalents. The company's outlook suggests continued recovery, with expectations of stable gasoline and diesel demand, moderating renewable diesel margins, and improved ethanol margins due to lower corn prices.

    Oct 27, 2021
  17. 2021-Q2

    Valero Energy Quarterly Report for Q2 Ended Jun 30, 2021

    Valero Energy Corp. (VLO) reported a net income of $162 million for the second quarter of 2021, a significant recovery from the net loss of $542 million in the first six months of the year. This turnaround was driven by improving demand for gasoline and diesel, nearing pre-pandemic levels, and a rebound in refining margins. Despite the positive quarterly performance, the company faced headwinds earlier in the year, including substantial excess energy costs due to Winter Storm Uri, which impacted overall six-month profitability. The company maintained a strong liquidity position with $8.4 billion in available liquidity as of June 30, 2021. Revenue growth was substantial, with a $17.4 billion increase in Q2 2021 compared to Q2 2020, primarily due to higher refined petroleum product prices and increased sales volumes in the refining segment. The renewable diesel and ethanol segments also showed strong performance with increased margins and sales volumes. Valero continues to invest in its business, with capital investments of $1.1 billion in the first six months of 2021, a significant portion allocated to expanding its renewable diesel operations.

    Jul 29, 2021
  18. 2021-Q1

    Valero Energy Quarterly Report for Q1 Ended Mar 31, 2021

    Valero Energy Corp./TX (VLO) reported a net loss attributable to stockholders of $704 million for the first quarter of 2021, a significant improvement from the $1.9 billion net loss in the same period of 2020. This improvement was primarily driven by a lower operating loss, partly due to the absence of a large $2.5 billion LCM inventory valuation adjustment that impacted the prior year's first quarter. However, the company highlighted substantial excess energy costs of $579 million due to Winter Storm Uri, which significantly impacted its first-quarter results. Despite these challenges, the company observed signs of recovery in demand and market prices for gasoline and diesel, approaching pre-pandemic levels by March 2021. The company's liquidity remained robust, with $7.97 billion in total liquidity as of March 31, 2021, although cash and cash equivalents decreased by $1.0 billion during the quarter to $2.25 billion. This decrease was attributed to operational cash usage, capital investments, and dividend payments. Valero continues to navigate the uncertain economic environment shaped by the COVID-19 pandemic, with ongoing efforts to manage costs and align operations with market demand.

    Apr 30, 2021
  19. 2020-Q3

    Valero Energy Quarterly Report for Q3 Ended Sep 30, 2020

    Valero Energy Corporation (VLO) reported a net loss of $464 million for the third quarter of 2020, a significant decline from the $609 million net income in the same period of 2019. This downturn was primarily driven by a substantial decrease in operating income, largely attributable to challenging market conditions in the refining segment due to the COVID-19 pandemic's impact on fuel demand and prices. Despite the overall loss, the company's cash position strengthened, with cash and cash equivalents increasing by $1.4 billion year-to-date to $4.0 billion, bolstered by proceeds from debt offerings and operational cash flow, which included a notable reduction in inventory levels. The company has implemented several measures to mitigate the pandemic's impact, including deferring capital investments and operational adjustments, and maintaining a strong liquidity position of $9.6 billion as of September 30, 2020. The company's performance in the third quarter was heavily influenced by the ongoing economic disruption from COVID-19, which led to reduced demand and lower prices for refined petroleum products. While the renewable diesel segment showed improved performance driven by higher sales volumes, the refining and ethanol segments experienced significant headwinds. Valero ended the quarter with a solid liquidity buffer, indicating a resilient financial position despite the adverse operating environment, and has initiated a quarterly cash dividend of $0.98 per common share.

    Oct 28, 2020
  20. 2020-Q2

    Valero Energy Quarterly Report for Q2 Ended Jun 30, 2020

    Valero Energy Corporation (VLO) reported its second quarter 2020 results, a period significantly impacted by the COVID-19 pandemic and volatile oil markets. Despite a challenging operating environment, the company reported a net income attributable to Valero stockholders of $1.3 billion for the quarter, a substantial increase from $612 million in the prior year period. This improvement was largely driven by a significant recovery in the Lower of Cost or Market (LCM) inventory valuation, which resulted in a $2.2 billion reversal of a prior quarter's writedown. However, excluding this inventory adjustment, the company's adjusted operating income showed a notable decline, reflecting reduced refining and ethanol segment margins and lower throughput volumes due to decreased demand. For the first six months of 2020, Valero reported a net loss of $598 million, a reversal from a net income of $753 million in the same period last year. This loss was also significantly influenced by inventory valuation adjustments. The company has taken proactive measures to navigate the economic downturn, including deferring capital projects, managing operating costs, and securing additional liquidity through a new revolving credit facility. Despite the ongoing uncertainties surrounding the pandemic and its economic effects, Valero expects an improvement in product prices and margins in the coming quarters.

    Jul 31, 2020
  21. 2020-Q1

    Valero Energy Quarterly Report for Q1 Ended Mar 31, 2020

    Valero Energy Corp.'s first quarter of 2020 filing reveals a significant impact from the early stages of the COVID-19 pandemic and volatile oil markets, resulting in a substantial net loss of $1.851 billion attributable to Valero Energy Corporation stockholders. This contrasts sharply with a net income of $141 million in the prior year's first quarter. The primary driver of this downturn was a significant $2.5 billion lower of cost or market (LCM) inventory valuation adjustment, largely impacting the refining segment. Despite the overall loss, the company's liquidity remained a focus, with $6.3 billion in total liquidity as of March 31, 2020. Management has implemented several measures to navigate the challenging environment, including reducing refinery throughput, idling certain production units, deferring capital expenditures, and securing additional credit facilities and completing a public debt offering in April 2020. While the company has taken proactive steps, significant uncertainties remain regarding the duration and ultimate economic impact of the pandemic.

    Apr 29, 2020
  22. 2019-Q3

    Valero Energy Quarterly Report for Q3 Ended Sep 30, 2019

    Valero Energy Corporation's (VLO) third quarter 2019 results showed a decrease in net income attributable to stockholders, falling to $609 million from $856 million in the same period last year. This decline was primarily driven by lower operating income, which was impacted by weaker refining margins due to lower crude oil discounts and reduced throughput volumes, partially offset by improved distillate margins. The ethanol segment also faced headwinds from higher corn prices. Despite the year-over-year decline in quarterly profit, the company's renewable diesel segment demonstrated robust growth, with operating income increasing significantly due to higher sales volumes and favorable commodity derivative impacts. For the first nine months of 2019, net income attributable to stockholders also saw a substantial decrease compared to the prior year, reflecting similar trends in the refining segment. The company maintained a strong liquidity position with $7.4 billion in available borrowing capacity and cash, and continued its share repurchase program, underscoring a focus on returning capital to shareholders.

    Nov 7, 2019
  23. 2019-Q2

    Valero Energy Quarterly Report for Q2 Ended Jun 30, 2019

    Valero Energy Corporation (VLO) reported financial results for the second quarter and first six months ended June 30, 2019. The company experienced a decrease in net income attributable to stockholders compared to the prior year, largely driven by lower operating income across its segments, particularly the refining segment. Despite a challenging refining environment characterized by narrower crude oil discounts and weaker gasoline margins, Valero's renewable diesel segment showed strong growth in operating income and margins due to increased sales volumes from its expanded facility. The ethanol segment faced headwinds from higher corn prices and lower co-product values. The company's outlook anticipates improving distillate margins and potential benefits from evolving crude oil discounts, though ethanol margins are expected to remain weak. Valero maintained a strong liquidity position with significant available borrowing capacity and cash. The company continued its capital allocation strategy, including share repurchases and dividend payments, alongside ongoing capital investments in sustaining and growth projects.

    Aug 6, 2019
  24. 2019-Q1

    Valero Energy Quarterly Report for Q1 Ended Mar 31, 2019

    Valero Energy Corporation (VLO) reported a significant decrease in net income attributable to stockholders for the first quarter of 2019 compared to the same period in 2018, falling from $469 million to $141 million. This decline was primarily driven by a substantial drop in operating income, which decreased from $801 million to $308 million. The refining segment, the largest contributor to revenue, experienced a significant reduction in operating income, largely due to lower gasoline margins, although this was partially offset by improved crude oil discounts. The company also completed the acquisition of Valero Energy Partners LP (VLP) in January 2019, which was funded by existing cash. Despite the decrease in net income, Valero maintained a strong liquidity position with significant available borrowing capacity and cash. The company reaffirmed its outlook for improved gasoline margins in the second quarter due to the upcoming summer driving season.

    May 7, 2019
  25. 2018-Q3

    Valero Energy Quarterly Report for Q3 Ended Sep 30, 2018

    Valero Energy Corporation (VLO) reported solid financial results for the third quarter and the first nine months of 2018. For the third quarter, net income attributable to stockholders was $856 million ($2.01 per share), a slight increase from $841 million ($1.91 per share) in the prior year period. The nine-month period showed a more significant increase in net income to $2.17 billion ($5.05 per share) from $1.69 billion ($3.80 per share) in the same period of 2017. These improved results were driven by strong performance in the refining segment, which benefited from higher distillate margins, favorable crude oil discounts, and increased throughput volumes. While gasoline and other product margins softened, these were offset by positive factors. The ethanol segment experienced a decline in operating income due to lower ethanol prices, despite some support from co-product prices and lower corn prices. VLP (Valero Logistics Partnership) showed growth in operating income due to incremental revenues from recent acquisitions. The company also highlighted its strategic initiatives, including an agreement to acquire three ethanol plants and the pending merger with Valero Energy Partners LP (VLP). Valero maintains a strong liquidity position with significant available borrowing capacity and cash on hand, enabling continued investments in capital projects, acquisitions, dividends, and share repurchases.

    Nov 6, 2018
  26. 2018-Q2

    Valero Energy Quarterly Report for Q2 Ended Jun 30, 2018

    Valero Energy Corporation (VLO) reported strong financial performance for the second quarter and first six months of 2018, demonstrating significant year-over-year growth in net income and operating income. This improvement was primarily driven by a robust refining segment, which benefited from higher distillate margins and favorable crude oil discounts. The ethanol and VLP segments also contributed positively, albeit to a lesser extent. Key financial highlights include a substantial increase in revenues and net income attributable to Valero stockholders, supported by effective cost management and favorable market conditions in the refining sector. The company also made strategic investments, notably the acquisition in Peru, which is expected to broaden its geographic reach. Despite certain headwinds such as lower gasoline margins and increased feedstock costs, Valero's diversified business model and strong operational execution position it well for continued performance.

    Aug 6, 2018
  27. 2018-Q1

    Valero Energy Quarterly Report for Q1 Ended Mar 31, 2018

    Valero Energy Corporation (VLO) reported strong financial performance for the first quarter of 2018, with net income attributable to Valero stockholders increasing significantly to $469 million, up from $305 million in the same period of 2017. This robust growth was driven by a substantial increase in operating income, which rose to $801 million from $528 million year-over-year. The refining segment was the primary contributor to this improvement, benefiting from higher distillate margins and increased throughput volumes. The company also saw positive contributions from its ethanol and VLP segments, though the refining segment's gains were partially offset by factors such as lower discounts on crude oils and higher biofuel credit costs. Despite a fire at its Texas City Refinery in April 2018, the company anticipates no material adverse effect on its operational results. Valero maintained a strong liquidity position and continued its commitment to returning capital to shareholders through dividends and share repurchases.

    May 7, 2018
  28. 2017-Q3

    Valero Energy Quarterly Report for Q3 Ended Sep 30, 2017

    Valero Energy Corporation (VLO) reported strong financial results for the third quarter and the first nine months of 2017, driven by robust performance in its Refining segment. For the third quarter of 2017, Valero's net income attributable to stockholders increased significantly to $841 million ($1.91 per diluted share) from $613 million ($1.33 per diluted share) in the same period of 2016. This improvement was primarily fueled by a substantial rise in the Refining segment's operating income, which benefited from higher margins on refined petroleum products and increased throughput volumes, despite a $44 million impact from Hurricane Harvey. The Ethanol segment experienced a slight decline in operating income due to higher corn prices, while the VLP segment saw a modest increase in operating income. For the first nine months of 2017, net income attributable to stockholders was $1.7 billion ($3.80 per diluted share), a decrease from $1.9 billion ($4.12 per diluted share) in the prior year. This decrease was mainly due to a higher operating income in the prior year boosted by a favorable inventory valuation adjustment and an asset impairment loss recovery. However, excluding these items, adjusted operating income for the first nine months of 2017 showed a significant increase of $529 million, again driven by the strong performance in the Refining segment, higher throughput volumes, and improved margins.

    Nov 7, 2017
  29. 2017-Q2

    Valero Energy Quarterly Report for Q2 Ended Jun 30, 2017

    Valero Energy Corporation (VLO) reported its financial results for the quarter and six months ended June 30, 2017. For the second quarter of 2017, net income attributable to stockholders was $548 million ($1.23 per diluted share), a decrease from $814 million ($1.73 per diluted share) in the same period of 2016. This decline was primarily driven by lower operating income, which fell to $871 million from $1.23 billion year-over-year. The company experienced strong performance in its Refining segment, with increased margins and throughput volumes, contributing positively to overall results. However, challenges in the Ethanol segment, including lower product prices and higher operating costs, weighed on profitability. Valero continues to invest in growth strategies, including significant capital expenditures and joint venture investments, while also returning capital to shareholders through dividends and share repurchases.

    Aug 7, 2017
  30. 2017-Q1

    Valero Energy Quarterly Report for Q1 Ended Mar 31, 2017

    Valero Energy Corporation (VLO) reported its first-quarter 2017 financial results, showing a decrease in net income attributable to stockholders to $305 million from $495 million in the prior year's comparable period. This decline was primarily driven by lower operating income, which fell to $537 million from $829 million, largely due to an absence of a significant inventory valuation adjustment that benefited the first quarter of 2016. Excluding this adjustment, adjusted operating income saw a slight increase, reflecting mixed performance across segments. The Refining segment experienced a decrease in operating income, impacted by lower margins on certain refined products and increased operating expenses, despite improved distillate margins. The Ethanol segment, however, showed improved operating income driven by higher ethanol margins. The VLP (Valero Energy Partners LP) segment demonstrated growth in operating income due to increased transportation and terminaling services from acquired businesses and assets. The company also continues to manage its liquidity through operational cash flows, capital investments, share repurchases, and dividend payments.

    May 8, 2017
  31. 2016-Q3

    Valero Energy Quarterly Report for Q3 Ended Sep 30, 2016

    Valero Energy Corporation (VLO) reported a decrease in net income attributable to stockholders for the nine months ended September 30, 2016, down to $1.92 billion from $3.70 billion in the prior year period. This decline was primarily driven by a significant reduction in operating income, particularly within the Refining segment, which saw a $2.82 billion decrease. Factors contributing to this were lower refining margins on products and less favorable crude oil discounts. The company also recorded a substantial non-cash benefit of $747 million related to the reversal of its lower of cost or market inventory valuation reserve, which positively impacted net income, but the core operational performance saw a decline. Despite the lower profitability, Valero maintained a strong operational stance. The company generated $3.82 billion in cash flow from operations during the first nine months of 2016. Significant capital investments were made, including growth strategies like the Diamond Pipeline project. Valero also continued its commitment to shareholder returns, repurchasing $1.17 billion in common stock and paying $840 million in dividends for the nine-month period. The company's liquidity remains robust, with substantial cash on hand and strong credit ratings, positioning it to navigate market volatility.

    Nov 8, 2016
  32. 2016-Q2

    Valero Energy Quarterly Report for Q2 Ended Jun 30, 2016

    Valero Energy Corporation (VLO) reported a decrease in net income attributable to stockholders for the second quarter and first six months of 2016 compared to the prior year. The decline was largely driven by lower refining margins and higher feedstock costs, impacting both operating and adjusted operating income. Notably, the company benefited from a significant non-cash gain of $454 million ($747 million for the six months) due to a favorable change in the lower of cost or market inventory valuation. However, this was partially offset by an asset impairment loss of $56 million related to the Aruba Terminal. Despite the year-over-year decrease in earnings, Valero maintained a strong liquidity position, generating substantial cash flow from operations. The company continued its capital allocation strategy, repurchasing shares and paying dividends. Management expects continued volatility in energy markets but anticipates slight improvements in ethanol margins due to lower corn prices. Investors should monitor refining margins, crude oil differentials, and regulatory developments impacting biofuel credit costs.

    Aug 4, 2016
  33. 2016-Q1

    Valero Energy Quarterly Report for Q1 Ended Mar 31, 2016

    Valero Energy Corporation (VLO) reported a significant year-over-year decrease in net income for the first quarter of 2016. Net income attributable to Valero stockholders was $495 million, or $1.05 per diluted share, down from $964 million, or $1.87 per diluted share, in the first quarter of 2015. This decline was primarily driven by lower refining margins, particularly in distillate and gasoline products, and less favorable crude oil pricing differentials. The company also experienced a decrease in operating revenues due to lower refined product prices and feedstock costs. Despite the lower profitability, Valero maintained a strong operational performance. The company benefited from a substantial non-cash gain from an inventory valuation adjustment of $293 million, which mitigated some of the margin pressure. Valero continued its capital return to shareholders through dividends and share repurchases, and maintained a robust liquidity position with $3.78 billion in cash and temporary cash investments. The company also highlighted its strategic investments, including progress on the Diamond Pipeline project, and expressed confidence in its ability to fund ongoing operations and future growth initiatives.

    May 5, 2016
  34. 2015-Q3

    Valero Energy Quarterly Report for Q3 Ended Sep 30, 2015

    Valero Energy Corporation (VLO) reported strong financial performance for the nine months ended September 30, 2015, with net income attributable to stockholders significantly increasing to $3.7 billion from $2.5 billion in the same period of 2014. This growth was primarily driven by a substantial improvement in operating income, which rose by $1.6 billion. The refining segment was the main contributor to this increase, showing a $2.1 billion rise in operating income due to higher refining margins, particularly on gasoline and other refined products, despite some headwinds from narrowing crude oil discounts and increased processing costs for certain feedstocks. The company's outlook suggests continued volatility in energy markets. Refining margins are expected to be influenced by seasonal gasoline trends and fluctuating crude oil discounts. Ethanol margins are anticipated to remain under pressure due to low gasoline prices. Valero also highlighted its robust cash flow generation, with operating activities providing $5.1 billion in cash for the nine months ended September 30, 2015. The company actively returned capital to shareholders through substantial share repurchases, totaling $2.1 billion during the period, and dividend payments of $608 million.

    Nov 4, 2015
  35. 2015-Q2

    Valero Energy Quarterly Report for Q2 Ended Jun 30, 2015

    Valero Energy Corp. (VLO) reported strong financial results for the second quarter and first half of 2015, driven by significantly improved refining margins. Net income attributable to Valero stockholders from continuing operations surged to $1.35 billion ($2.66 per diluted share) in Q2 2015, a substantial increase from $651 million ($1.22 per diluted share) in Q2 2014. For the first six months, net income was $2.32 billion ($4.52 per diluted share), up from $1.48 billion ($2.77 per diluted share) in the prior year period. This performance was largely due to favorable refining margins on gasoline and other refined products, coupled with lower natural gas costs, which more than offset a decline in the ethanol segment's profitability. Despite a challenging pricing environment for ethanol, Valero demonstrated robust operational execution in its refining segment. The company's liquidity position strengthened, with operating cash flows increasing significantly year-over-year. Valero also continued its commitment to returning capital to shareholders, authorizing a substantial additional $2.5 billion stock repurchase program and declaring a quarterly dividend. The company's outlook anticipates continued volatility in energy markets but highlights strong underlying operational performance.

    Aug 6, 2015
  36. 2015-Q1

    Valero Energy Quarterly Report for Q1 Ended Mar 31, 2015

    Valero Energy Corp. (VLO) reported a strong first quarter for 2015, with net income attributable to stockholders from continuing operations increasing to $964 million ($1.87 per share) from $829 million ($1.54 per share) in the prior year's first quarter. This improvement was primarily driven by a significant increase in refining segment operating income, which rose by $361 million due to improved margins on gasoline and other refined products, as well as lower natural gas costs. However, the ethanol segment experienced a substantial decline in operating income, down $231 million, attributed to lower ethanol and co-product prices relative to corn feedstock costs. The company's liquidity position strengthened, with cash and temporary cash investments increasing by $1.2 billion to $4.9 billion. This was supported by robust operating cash flow and new debt issuances totaling $1.25 billion in March 2015. Valero also continued its capital allocation strategy, investing in capital expenditures and returning capital to shareholders through dividends and share repurchases. Management anticipates continued market volatility but expects slight improvements in refining margins, particularly for gasoline, in the second quarter.

    May 7, 2015
  37. 2014-Q3

    Valero Energy Quarterly Report for Q3 Ended Sep 30, 2014

    Valero Energy Corporation (VLO) reported a significant increase in financial performance for the nine months ended September 30, 2014, compared to the same period in 2013. Net income attributable to stockholders more than doubled to $2.475 billion from $1.432 billion, driven primarily by a substantial improvement in the refining segment's operating income. This growth was largely attributed to wider crude oil discounts (especially for sour and light sweet crudes relative to Brent) and stronger gasoline margins, partially offset by weaker distillate margins and higher energy costs. The company also saw strong performance in its ethanol segment, with operating income more than doubling. This was driven by lower corn costs and higher production volumes, despite lower co-product and ethanol prices. Valero's balance sheet shows total assets increasing to $48.455 billion from $47.260 billion, with a notable increase in inventories. The company continued its capital return program, repurchasing shares and paying dividends, while also managing its debt effectively with a low debt-to-capitalization ratio.

    Nov 6, 2014
  38. 2014-Q2

    Valero Energy Quarterly Report for Q2 Ended Jun 30, 2014

    Valero Energy Corporation's (VLO) second quarter 2014 report shows a strong financial performance, driven primarily by its refining segment. Net income attributable to Valero stockholders from continuing operations was $651 million, or $1.22 per diluted share, a significant increase from $463 million, or $0.84 per diluted share, in the prior year's quarter. This improvement was fueled by higher refining throughput margins and volumes, benefiting from wider discounts on sour and light sweet crude oils compared to Brent crude. The company also saw a substantial increase in its ethanol segment's operating income, largely due to lower corn prices despite a decrease in production volumes. However, Valero announced the abandonment of its Aruba Refinery, resulting in a $63 million charge classified under discontinued operations. Despite the charge and the inherent volatility in energy markets, Valero maintained a solid balance sheet with $3.48 billion in cash and temporary cash investments and a healthy debt-to-capitalization ratio of 14%. The company also continued its capital return to shareholders through dividends and share repurchases.

    Aug 7, 2014
  39. 2014-Q1

    Valero Energy Quarterly Report for Q1 Ended Mar 31, 2014

    Valero Energy Corporation (VLO) reported strong financial performance for the first quarter of 2014, with net income attributable to Valero stockholders increasing to $828 million, or $1.54 per diluted share, up from $654 million, or $1.18 per diluted share, in the same period of 2013. This substantial improvement was driven by a significant increase in operating income, primarily from the refining and ethanol segments. The refining segment saw a $67 million increase in operating income due to higher throughput margins and volumes, despite rising energy costs. The ethanol segment experienced a remarkable $229 million surge in operating income, attributed to favorable corn prices and higher ethanol prices, leading to improved gross margins and increased production. The company also noted the absence of retail segment results due to the prior year's separation of its retail business. Valero's liquidity remained robust, with $3.6 billion in cash and temporary cash investments. The company continues to return capital to shareholders through dividends and share repurchases, with $133 million in dividends paid and significant share repurchases in the quarter. Looking ahead, Valero anticipates continued volatility in energy markets but remains focused on leveraging favorable crude oil discounts and managing operational efficiencies.

    May 8, 2014
  40. 2013-Q3

    Valero Energy Quarterly Report for Q3 Ended Sep 30, 2013

    Valero Energy Corporation (VLO) reported a decrease in net income attributable to stockholders for the third quarter of 2013, with $312 million ($0.57 per diluted share) compared to $674 million ($1.21 per diluted share) in the same period of 2012. This decline was primarily driven by a significant drop in operating income, largely due to lower refining margins across all regions, impacted by reduced gasoline and diesel margins, narrower discounts on crude oil, and increased costs for biofuel credits (RINs). The separation of its retail business on May 1, 2013, also contributed to the year-over-year decline in consolidated results as this segment is no longer included. Despite the quarterly dip, the first nine months of 2013 showed an increase in net income to $1.4 billion ($2.61 per diluted share) from $1.1 billion ($1.93 per diluted share) in the prior year. This improvement was largely due to a substantial decrease in income tax expense. The company also highlighted its successful spin-off of its retail business into CST Brands, Inc., and is advancing plans for an initial public offering of its master limited partnership, Valero Energy Partners LP (VLP), to further enhance its strategic positioning.

    Nov 5, 2013
  41. 2013-Q2

    Valero Energy Quarterly Report for Q2 Ended Jun 30, 2013

    Valero Energy Corporation (VLO) reported a decrease in net income attributable to stockholders to $466 million for the second quarter of 2013, down from $831 million in the same period of 2012. This decline was primarily driven by lower refining margins, impacted by narrower discounts on heavy sour crude oils and higher costs for biofuel credits and natural gas. The company also completed the separation of its retail business on May 1, 2013, creating CST Brands, Inc., which impacted segment reporting for the retail segment. For the first six months of 2013, net income was $1.1 billion, a significant increase from $399 million in the first six months of 2012. This improvement was largely due to the absence of significant asset impairment losses ($611 million in H1 2012) and improved refining margins, although this was partially offset by higher biofuel credit costs and natural gas prices. The company generated strong operating cash flow of $2.8 billion in the first six months of 2013, which was used to fund capital expenditures, stock repurchases, and dividends, while also increasing cash on hand.

    Aug 7, 2013
  42. 2013-Q1

    Valero Energy Quarterly Report for Q1 Ended Mar 31, 2013

    Valero Energy Corporation (VLO) reported a significant turnaround in its financial performance for the first quarter of 2013 compared to the same period in 2012. The company posted a net income attributable to stockholders of $654 million, or $1.18 per share, a substantial improvement from a net loss of $432 million, or $0.78 per share, in Q1 2012. This recovery was primarily driven by a strong rebound in the Refining segment, which saw its operating income surge by $1.3 billion year-over-year, largely due to improved refining throughput margins and wider crude oil discounts. A key strategic development during this period was the upcoming separation of Valero's retail business into a new independent company, CST Brands, Inc., which was completed shortly after the quarter's end. This move is expected to allow Valero to focus more intently on its core refining and logistics operations. The company also highlighted its ongoing investment in logistics and capabilities to process cost-advantaged domestic crude oils, positioning itself to benefit from the evolving energy landscape.

    May 8, 2013
  43. 2012-Q3

    Valero Energy Quarterly Report for Q3 Ended Sep 30, 2012

    Valero Energy Corporation (VLO) reported net income attributable to stockholders from continuing operations of $674 million ($1.21 per diluted share) for the third quarter of 2012, a decrease from $1.2 billion ($2.11 per diluted share) in the same period of 2011. This decline was primarily driven by a $670 million decrease in operating income across its segments, notably a $419 million reduction in refining operating income. The quarter was significantly impacted by a $333 million asset impairment loss related to the Aruba Refinery, alongside $41 million in severance expenses for the same facility. For the first nine months of 2012, net income from continuing operations was $1.1 billion ($1.93 per diluted share), down from $2.1 billion ($3.59 per diluted share) in the corresponding period of 2011. This year-to-date decrease was largely due to a $1.1 billion drop in operating income, heavily influenced by a substantial $928 million asset impairment loss for the Aruba Refinery and other factors affecting refining and ethanol margins. The company is strategically evaluating options for its retail business, including a potential tax-efficient separation. Despite reduced profitability, Valero generated strong operating cash flow of $5.1 billion for the first nine months of 2012, which was used to fund capital expenditures, debt repayments, and shareholder returns through dividends and share repurchases. The company's liquidity remains robust, supported by its revolving credit facility and accounts receivable sales program.

    Nov 6, 2012
  44. 2012-Q2

    Valero Energy Quarterly Report for Q2 Ended Jun 30, 2012

    Valero Energy Corporation (VLO) reported solid financial results for the second quarter of 2012, demonstrating a recovery in profitability compared to the previous year. Net income attributable to stockholders from continuing operations increased by 11.5% to $831 million, or $1.50 per diluted share, up from $745 million, or $1.30 per diluted share, in the second quarter of 2011. This improvement was primarily driven by a significant increase in operating income within the refining segment, largely due to the contributions from recently acquired Meraux and Pembroke refineries. However, the first six months of 2012 saw a notable decline in net income to $399 million ($0.72 per diluted share) compared to $849 million ($1.48 per diluted share) in the same period of 2011. This year-over-year decrease was significantly influenced by a substantial asset impairment loss of $595 million related to the Aruba Refinery, coupled with reduced operating income in the refining and ethanol segments, the latter affected by lower margins due to excess ethanol supply and higher corn prices.

    Aug 8, 2012
  45. 2012-Q1

    Valero Energy Quarterly Report for Q1 Ended Mar 31, 2012

    Valero Energy Corporation (VLO) reported a net loss attributable to stockholders of $(432) million, or $(0.78) per share, for the first quarter of 2012. This contrasts with a net income of $98 million, or $0.17 per share, in the same period of the prior year. The significant loss in the current quarter was heavily influenced by an asset impairment charge of $611 million related to the decision to suspend operations at the Aruba Refinery. Excluding this one-time impairment charge, the company's adjusted net income from continuing operations was $173 million, or $0.31 per share, a decrease from $456 million, or $0.80 per share, in Q1 2011. This decline was primarily driven by a substantial drop in operating income from the refining segment, which was down $395 million year-over-year, largely due to narrower sour crude oil differentials and increased operating expenses, partially offset by improved gasoline and distillate margins in certain regions. The company is navigating a volatile energy market with expectations of continued margin pressure due to refining capacity rationalization and potential shifts in crude oil pricing.

    May 8, 2012
  46. 2011-Q3

    Valero Energy Quarterly Report for Q3 Ended Sep 30, 2011

    Valero Energy Corporation (VLO) reported a significant increase in net income attributable to stockholders for the nine months ended September 30, 2011, reaching $2.045 billion ($3.58 per share) compared to $762 million ($1.34 per share) in the same period of 2010. This substantial improvement was driven by a strong performance in the refining segment, which benefited from wider sour crude oil differentials and favorable pricing between different crude oil types, leading to significantly improved refining margins. The company also completed two major acquisitions during the period: the Pembroke Refinery in the UK and the Meraux Refinery in Louisiana, expanding its geographic reach and operational capacity. Despite the overall positive financial results, the company faces ongoing volatility in energy markets and potential impacts from environmental regulations. Management highlighted increased capital expenditures for improvements to refineries and environmental projects. Valero maintained a strong liquidity position, with significant cash from operations and available credit facilities, enabling these strategic investments and acquisitions.

    Nov 9, 2011
  47. 2011-Q2

    Valero Energy Quarterly Report for Q2 Ended Jun 30, 2011

    Valero Energy Corporation (VLO) reported strong financial performance for the second quarter and first six months of 2011, demonstrating significant year-over-year improvements in net income and operating income. The company's profitability was primarily driven by a substantial increase in operating income from its refining segment, benefiting from wider crude oil differentials and improved product margins. The retail and ethanol segments also contributed positively, showing increased operating income due to higher margins and production volumes, respectively. Financially, VLO saw a healthy increase in cash from operating activities, which was utilized for capital expenditures, debt repayments, and dividends. The company also announced a significant strategic acquisition, the Pembroke Refinery in the UK, highlighting its focus on geographic diversification and growth. Despite ongoing volatility in financial markets, Valero maintained a positive outlook, supported by strong operational performance and strategic initiatives.

    Aug 9, 2011
  48. 2011-Q1

    Valero Energy Quarterly Report for Q1 Ended Mar 31, 2011

    Valero Energy Corporation (VLO) reported a significant financial turnaround in the first quarter of 2011 compared to the same period in 2010. The company posted income from continuing operations of $104 million ($0.18 per share), a substantial improvement from a loss of $80 million ($0.14 per share) in Q1 2010. This positive shift was largely driven by a strong rebound in the refining segment, which saw operating income surge to $276 million from a $15 million loss year-over-year. Improved refining margins, wider sour crude oil differentials, and increased throughput volumes were key contributors to this segment's performance. Despite the overall improvement, the company recorded a substantial $542 million loss on commodity derivative contracts related to forward sales of refined products, which impacted the reported refining segment results. The retail and ethanol segments experienced slight declines in operating income, primarily due to increased operating expenses. Looking ahead, Valero announced a significant strategic move with an agreement to acquire Chevron's Pembroke Refinery in the UK for $730 million, signaling international expansion. Overall, the quarter demonstrated Valero's ability to capitalize on improving market conditions in its core refining business, though risk management around commodity derivatives remains a noteworthy factor. Investors should monitor the integration of the UK acquisition and ongoing volatility in energy markets.

    May 9, 2011
  49. 2010-Q3

    Valero Energy Quarterly Report for Q3 Ended Sep 30, 2010

    Valero Energy's Q3 2010 10-Q shows a company recovering from the 2009 downturn. Third-quarter 2010 income from continuing operations was $292 million ($0.51 per diluted share), a sharp swing from a $343 million loss in Q3 2009. Operating revenues rose 20% to $22.2 billion, driven by higher refined product prices. Refining operating income reached $571 million versus a $219 million loss a year earlier, reflecting stronger distillate margins, wider sour crude discounts, and the absence of prior-year impairments and Aruba tax accruals. For the first nine months, income from continuing operations was $721 million ($1.27 per share), with refining operating income of about $1.4 billion. Net income for the nine months was $1.34 per share after a gain on the Delaware City Refinery sale and discontinued operations results. Balance sheet and liquidity look stable. Cash rose to $2.35 billion, operating cash flow was $2.6 billion for the nine months (helped by a $923 million tax refund), and the debt-to-capitalization ratio improved to 27.0% from 30.9%. Valero issued $1.25 billion of notes at favorable rates and redeemed higher-coupon debt. Dividends were cut to $0.05 per quarter from $0.15 in the prior-year period, though the board declared the $0.05 payment for Q4 2010. The main risks are asset-level and regulatory. The Paulsboro Refinery sale to PBF Holding for $363 million plus working capital faces significant uncertainty because it depends on an emissions permit that management believes is unlikely by the December 1, 2010 deadline. If the sale closes, Valero expects a loss of about $920 million. The Aruba Refinery, shut since 2009, is at risk of impairment if sour crude differentials do not widen. The EPA's disapproval of Texas flexible permits adds compliance uncertainty for five major refineries, and retail fuel temperature class actions remain pending with no loss accrued.

    Nov 3, 2010
  50. 2010-Q2

    Valero Energy Quarterly Report for Q2 Ended Jun 30, 2010

    Valero Energy (VLO) reported a strong second quarter of 2010, with income from continuing operations of $530 million, or $0.93 per diluted share, compared with a loss of $191 million, or $0.36 per share, in the year-ago quarter. The swing was driven primarily by the refining segment, which earned $921 million of operating income versus a $143 million operating loss in Q2 2009. Management attributed the improvement to much wider distillate margins (Gulf Coast No. 2 fuel oil benchmark up $5.37/bbl year over year) and wider sour crude discounts (Maya at $9.75/bbl below WTI versus $4.57/bbl a year earlier), partly offset by weaker gasoline margins. Retail and ethanol also contributed higher operating income, benefiting from cheaper ethanol blended into gasoline. Six-month continuing operations earnings were $429 million, or $0.76 per share. The balance sheet and liquidity picture improved. Cash rose to $2.0 billion from year-end levels, helped by a $923 million tax refund, and the company issued $1.25 billion of notes at favorable rates while redeeming higher-coupon debt. The debt-to-capitalization ratio fell to 28.6% from 30.9%, well inside the Revolver's 60% covenant. Valero sold its shuttered Delaware City Refinery for $220 million, recording a $92 million gain in discontinued operations. Net income for the quarter was boosted by this gain and by a $30 million after-tax benefit from the Aruba tax settlement. Key risks remain. The Aruba and Paulsboro refineries carry net book values of $1.1 billion and $1.3 billion, respectively, and a future impairment could be material. The EPA's June 30, 2010 disapproval of Texas flexible air permits puts five Texas and Louisiana-area refineries' permit status in question. Valero also faces 21 consumer class actions over retail fuel temperature. Ratings agencies maintain negative outlooks on the company's BBB/Baa2 senior unsecured debt.

    Aug 6, 2010