Early Access

10-QPeriod: Q2 FY2014

VALERO ENERGY CORP/TX Quarterly Report for Q2 Ended Jun 30, 2014

Filed August 7, 2014For Securities:VLO

Summary

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.

Financial Highlights

47 data points
Beta

Net Income

$588.00M

EPS (Diluted)

$1.10

Total Assets

$47.01B

Cash & Equivalents

$3.48B

Free Cash Flow

$568.00M

Financial Statements
Beta
Operating Expenses$33.83B
Operating Income$1.08B
Interest Expense$98.00M
Net Income$588.00M
EPS (Basic)$1.11
EPS (Diluted)$1.10
Shares Outstanding (Basic)529.00M
Shares Outstanding (Diluted)534.00M

Key Highlights

  • 1Net income from continuing operations increased significantly year-over-year, reaching $651 million ($1.22/share) in Q2 2014 compared to $463 million ($0.84/share) in Q2 2013.
  • 2Refining segment operating income rose by $161 million year-over-year, driven by wider crude oil discounts (sour and light sweet) and increased throughput volumes.
  • 3Ethanol segment operating income saw a substantial increase of $92 million, primarily due to lower corn prices improving gross margins per gallon.
  • 4The company reported a $63 million charge related to the abandonment of the Aruba Refinery, classified as discontinued operations.
  • 5Cash and temporary cash investments stood at $3.48 billion as of June 30, 2014.
  • 6Valero's debt-to-capitalization ratio remained low at 14% as of June 30, 2014, well within its 60% covenant limit.
  • 7The company declared a quarterly cash dividend of $0.275 per common share and continued its share repurchase program.

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