Summary
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.
Financial Highlights
49 data points| Operating Expenses | $35.60B |
| Operating Income | $532.00M |
| Interest Expense | $102.00M |
| Net Income | $312.00M |
| EPS (Basic) | $0.58 |
| EPS (Diluted) | $0.57 |
| Shares Outstanding (Basic) | 540.00M |
| Shares Outstanding (Diluted) | 545.00M |
Key Highlights
- 1Net income attributable to Valero stockholders for Q3 2013 was $312 million, down from $674 million in Q3 2012, reflecting lower refining margins and the impact of the retail business separation.
- 2For the first nine months of 2013, net income attributable to stockholders increased to $1.4 billion, up from $1.1 billion in the same period of 2012, primarily due to a significant decrease in income tax expense.
- 3Operating income for the refining segment decreased by $928 million in Q3 2013 compared to Q3 2012, primarily due to lower refining margins per barrel.
- 4The company completed the separation of its retail business on May 1, 2013, resulting in no retail segment operating income for Q3 2013.
- 5Ethanol segment operating income saw a substantial improvement, increasing by $186 million in Q3 2013 compared to Q3 2012, driven by higher gross margins per gallon and increased production volumes.
- 6Valero announced plans for an initial public offering of Valero Energy Partners LP (VLP), its master limited partnership, which will focus on owning and operating logistics assets integral to its refining operations.
- 7The company managed its debt effectively, maintaining a debt-to-capitalization ratio of 20% as of September 30, 2013, well within the 60% covenant limit of its revolving credit facility.