Summary
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.
Financial Highlights
47 data points| Operating Expenses | $19.84B |
| Operating Income | $1.50B |
| Interest Expense | $101.00M |
| Net Income | $964.00M |
| EPS (Basic) | $1.87 |
| EPS (Diluted) | $1.87 |
| Shares Outstanding (Basic) | 513.00M |
| Shares Outstanding (Diluted) | 516.00M |
Key Highlights
- 1Net income attributable to Valero stockholders increased by 16% to $964 million in Q1 2015 from $828 million in Q1 2014.
- 2Earnings per diluted share from continuing operations rose to $1.87 in Q1 2015, up from $1.54 in Q1 2014.
- 3Refining segment operating income saw a significant increase of $361 million, primarily driven by higher gasoline and other product margins, as well as lower natural gas costs.
- 4Ethanol segment operating income decreased sharply by $231 million due to lower ethanol and co-product prices impacting margins.
- 5Cash and temporary cash investments significantly increased by $1.2 billion to $4.87 billion as of March 31, 2015.
- 6The company issued $1.25 billion in new senior notes in March 2015 to bolster liquidity and manage debt.
- 7Valero continued to return capital to shareholders, paying $206 million in dividends and repurchasing $325 million of its stock during the quarter.