Summary
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.
Financial Highlights
47 data points| Operating Expenses | $23.04B |
| Operating Income | $2.08B |
| Interest Expense | $113.00M |
| Net Income | $1.35B |
| EPS (Basic) | $2.67 |
| EPS (Diluted) | $2.66 |
| Shares Outstanding (Basic) | 505.00M |
| Shares Outstanding (Diluted) | 508.00M |
Key Highlights
- 1Net income attributable to Valero stockholders from continuing operations increased significantly to $1.35 billion ($2.66/share) in Q2 2015, up from $651 million ($1.22/share) in Q2 2014.
- 2Refining segment operating income more than doubled year-over-year, driven by substantial improvements in refining margins, particularly for gasoline.
- 3The ethanol segment experienced a decline in operating income due to lower ethanol and co-product margins, despite lower feedstock costs.
- 4Operating cash flow improved dramatically, reaching $3.76 billion for the first six months of 2015, compared to $1.38 billion in the same period of 2014.
- 5The company declared a quarterly dividend of $0.40 per share and authorized a significant $2.5 billion stock repurchase program, underscoring its commitment to shareholder returns.
- 6Valero Energy Partners LP (VLP) contributed to the company's strategic initiatives, with Valero contributing terminal assets and receiving cash and VLP units.