VALERO ENERGY CORP/TX Quarterly Report for Q2 Ended Jun 30, 2017

Summary

Valero Energy Corporation (VLO) reported its financial results for the quarter and six months ended June 30, 2017. For the second quarter of 2017, net income attributable to stockholders was $548 million ($1.23 per diluted share), a decrease from $814 million ($1.73 per diluted share) in the same period of 2016. This decline was primarily driven by lower operating income, which fell to $871 million from $1.23 billion year-over-year. The company experienced strong performance in its Refining segment, with increased margins and throughput volumes, contributing positively to overall results. However, challenges in the Ethanol segment, including lower product prices and higher operating costs, weighed on profitability. Valero continues to invest in growth strategies, including significant capital expenditures and joint venture investments, while also returning capital to shareholders through dividends and share repurchases.

Key Highlights

• 1Net income attributable to Valero stockholders for Q2 2017 was $548 million, down from $814 million in Q2 2016.
• 2Diluted earnings per share for Q2 2017 were $1.23, compared to $1.73 in Q2 2016.
• 3Total assets slightly decreased to $45.97 billion as of June 30, 2017, from $46.17 billion as of December 31, 2016.
• 4Operating income for Q2 2017 was $871 million, a decrease from $1.23 billion in Q2 2016, primarily due to lower refining margins and higher operating expenses.
• 5The Refining segment showed resilience with an increase in operating income of $57 million (adjusted), driven by higher margins and throughput volumes.
• 6The Ethanol segment experienced a decrease in operating income of $18 million (adjusted) due to lower product prices and increased operating expenses.
• 7Valero returned $627 million to shareholders through dividends and $660 million through share repurchases in the first six months of 2017.

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