Summary
Valero Energy Corporation (VLO) reported strong financial results for the third quarter and the first nine months of 2017, driven by robust performance in its Refining segment. For the third quarter of 2017, Valero's net income attributable to stockholders increased significantly to $841 million ($1.91 per diluted share) from $613 million ($1.33 per diluted share) in the same period of 2016. This improvement was primarily fueled by a substantial rise in the Refining segment's operating income, which benefited from higher margins on refined petroleum products and increased throughput volumes, despite a $44 million impact from Hurricane Harvey. The Ethanol segment experienced a slight decline in operating income due to higher corn prices, while the VLP segment saw a modest increase in operating income. For the first nine months of 2017, net income attributable to stockholders was $1.7 billion ($3.80 per diluted share), a decrease from $1.9 billion ($4.12 per diluted share) in the prior year. This decrease was mainly due to a higher operating income in the prior year boosted by a favorable inventory valuation adjustment and an asset impairment loss recovery. However, excluding these items, adjusted operating income for the first nine months of 2017 showed a significant increase of $529 million, again driven by the strong performance in the Refining segment, higher throughput volumes, and improved margins.
Financial Highlights
49 data points| Revenue | $23.56B |
| Cost of Revenue | $21.95B |
| Gross Profit | $1.61B |
| Operating Income | $1.33B |
| Interest Expense | $114.00M |
| Net Income | $841.00M |
| EPS (Basic) | $1.91 |
| EPS (Diluted) | $1.91 |
| Shares Outstanding (Basic) | 439.00M |
| Shares Outstanding (Diluted) | 441.00M |
Key Highlights
- 1Net income attributable to Valero stockholders for Q3 2017 was $841 million, a substantial increase from $613 million in Q3 2016, reflecting improved operational performance.
- 2Refining segment performance was a key driver, with Q3 2017 adjusted operating income up $536 million due to higher margins and throughput volumes.
- 3Despite a challenging corn price environment, the Ethanol segment's adjusted operating income saw a decrease of $24 million in Q3 2017 compared to Q3 2016.
- 4The VLP segment reported an increase in adjusted operating income of $16 million for Q3 2017, driven by incremental revenues from acquisitions.
- 5Total assets grew to $47.99 billion as of September 30, 2017, from $46.17 billion as of December 31, 2016, indicating investments in the business.
- 6Valero declared a quarterly cash dividend of $0.70 per common share, consistent with recent dividend payments.
- 7The company maintained strong liquidity, with $5.18 billion in cash and temporary cash investments as of September 30, 2017.