Summary
Valero Energy Corporation (VLO) reported solid financial results for the third quarter and the first nine months of 2018. For the third quarter, net income attributable to stockholders was $856 million ($2.01 per share), a slight increase from $841 million ($1.91 per share) in the prior year period. The nine-month period showed a more significant increase in net income to $2.17 billion ($5.05 per share) from $1.69 billion ($3.80 per share) in the same period of 2017. These improved results were driven by strong performance in the refining segment, which benefited from higher distillate margins, favorable crude oil discounts, and increased throughput volumes. While gasoline and other product margins softened, these were offset by positive factors. The ethanol segment experienced a decline in operating income due to lower ethanol prices, despite some support from co-product prices and lower corn prices. VLP (Valero Logistics Partnership) showed growth in operating income due to incremental revenues from recent acquisitions. The company also highlighted its strategic initiatives, including an agreement to acquire three ethanol plants and the pending merger with Valero Energy Partners LP (VLP). Valero maintains a strong liquidity position with significant available borrowing capacity and cash on hand, enabling continued investments in capital projects, acquisitions, dividends, and share repurchases.
Financial Highlights
49 data points| Revenue | $30.85B |
| Cost of Revenue | $29.40B |
| Gross Profit | $1.45B |
| Operating Income | $1.22B |
| Interest Expense | $111.00M |
| Net Income | $856.00M |
| EPS (Basic) | $2.01 |
| EPS (Diluted) | $2.01 |
| Shares Outstanding (Basic) | 425.00M |
| Shares Outstanding (Diluted) | 427.00M |
Key Highlights
- 1Net income attributable to Valero stockholders for the third quarter of 2018 was $856 million ($2.01 per share), up from $841 million ($1.91 per share) in Q3 2017.
- 2For the first nine months of 2018, net income attributable to Valero stockholders was $2.17 billion ($5.05 per share), a significant increase from $1.69 billion ($3.80 per share) in the same period of 2017.
- 3The refining segment showed improved performance, driven by higher distillate margins and favorable crude oil discounts, partially offset by lower gasoline and other product margins.
- 4Valero announced an agreement to acquire three ethanol plants for $300 million, expected to close in Q4 2018.
- 5The company entered into an agreement to acquire all outstanding publicly held common units of Valero Energy Partners LP (VLP) for approximately $950 million.
- 6Total assets increased to $51.89 billion as of September 30, 2018, from $50.16 billion at the end of 2017, with a notable increase in Property, plant, and equipment, net.
- 7Valero reported strong liquidity, with total available borrowing capacity of $4.3 billion and $3.3 billion in cash and cash equivalents as of September 30, 2018.