Summary
Valero Energy Corporation (VLO) reported strong financial performance for the first quarter of 2018, with net income attributable to Valero stockholders increasing significantly to $469 million, up from $305 million in the same period of 2017. This robust growth was driven by a substantial increase in operating income, which rose to $801 million from $528 million year-over-year. The refining segment was the primary contributor to this improvement, benefiting from higher distillate margins and increased throughput volumes. The company also saw positive contributions from its ethanol and VLP segments, though the refining segment's gains were partially offset by factors such as lower discounts on crude oils and higher biofuel credit costs. Despite a fire at its Texas City Refinery in April 2018, the company anticipates no material adverse effect on its operational results. Valero maintained a strong liquidity position and continued its commitment to returning capital to shareholders through dividends and share repurchases.
Financial Highlights
48 data points| Revenue | $26.44B |
| Cost of Revenue | $25.38B |
| Gross Profit | $1.06B |
| Operating Income | $801.00M |
| Interest Expense | $121.00M |
| Net Income | $469.00M |
| EPS (Basic) | $1.09 |
| EPS (Diluted) | $1.09 |
| Shares Outstanding (Basic) | 431.00M |
| Shares Outstanding (Diluted) | 432.00M |
Key Highlights
- 1Net income attributable to Valero stockholders surged to $469 million in Q1 2018, a significant increase from $305 million in Q1 2017.
- 2Operating income rose substantially to $801 million in Q1 2018, up from $528 million in Q1 2017, driven by strong performance in the refining segment.
- 3The refining segment experienced improved distillate margins and higher throughput volumes, contributing to a $122 million increase in adjusted operating income for the segment.
- 4Ethanol segment operating income increased by $23 million, primarily due to higher corn co-product prices.
- 5VLP segment operating income grew by $14 million, largely from incremental revenues following asset acquisitions in late 2017.
- 6The company reported a lower effective tax rate of 20% in Q1 2018 due to the U.S. statutory income tax rate reduction from the Tax Cuts and Jobs Act.
- 7Valero maintained a strong liquidity position with $8.8 billion in available liquidity as of March 31, 2018, including $4.6 billion in cash and temporary cash investments.