Summary
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.
Financial Highlights
47 data points| Operating Expenses | $32.74B |
| Operating Income | $1.67B |
| Interest Expense | $98.00M |
| Net Income | $1.06B |
| EPS (Basic) | $2.01 |
| EPS (Diluted) | $2.00 |
| Shares Outstanding (Basic) | 526.00M |
| Shares Outstanding (Diluted) | 530.00M |
Key Highlights
- 1Net income attributable to Valero stockholders surged to $2.475 billion for the first nine months of 2014, a substantial increase from $1.432 billion in the prior year period.
- 2Operating income for the refining segment saw a significant boost, increasing by $1.3 billion for the nine months ended September 30, 2014, primarily due to wider crude oil discounts and improved gasoline margins.
- 3The ethanol segment also demonstrated strong growth, with operating income rising to $628 million from $222 million for the first nine months, driven by lower corn prices and increased production volumes.
- 4Total assets grew to $48.455 billion as of September 30, 2014, up from $47.260 billion at the end of 2013, with inventories increasing significantly.
- 5Valero continued its share repurchase program, spending $799 million on treasury stock during the first nine months of 2014, in addition to paying $411 million in common stock dividends.
- 6The company maintained a healthy liquidity position, with $4.191 billion in cash and temporary cash investments as of September 30, 2014, and a strong debt-to-capitalization ratio of 10% as of the same date.
- 7The Aruba Refinery operations were abandoned in May 2014 and are now presented as discontinued operations, resulting in a pre-tax loss of $64 million for the nine months ended September 30, 2014.