Summary
Valero Energy Corporation (VLO) reported a significant decrease in net income attributable to stockholders for the first quarter of 2019 compared to the same period in 2018, falling from $469 million to $141 million. This decline was primarily driven by a substantial drop in operating income, which decreased from $801 million to $308 million. The refining segment, the largest contributor to revenue, experienced a significant reduction in operating income, largely due to lower gasoline margins, although this was partially offset by improved crude oil discounts. The company also completed the acquisition of Valero Energy Partners LP (VLP) in January 2019, which was funded by existing cash. Despite the decrease in net income, Valero maintained a strong liquidity position with significant available borrowing capacity and cash. The company reaffirmed its outlook for improved gasoline margins in the second quarter due to the upcoming summer driving season.
Financial Highlights
45 data points| Revenue | $24.26B |
| Cost of Revenue | $23.73B |
| Gross Profit | $533.00M |
| Operating Income | $308.00M |
| Interest Expense | $112.00M |
| Net Income | $141.00M |
| EPS (Basic) | $0.34 |
| EPS (Diluted) | $0.34 |
| Shares Outstanding (Basic) | 416.00M |
| Shares Outstanding (Diluted) | 418.00M |
Key Highlights
- 1Net income attributable to Valero stockholders decreased significantly by $328 million to $141 million in Q1 2019 compared to $469 million in Q1 2018.
- 2Operating income saw a substantial decline of $493 million, from $801 million in Q1 2018 to $308 million in Q1 2019.
- 3The refining segment's adjusted operating income decreased by $330 million, primarily due to lower gasoline margins, despite higher crude oil discounts.
- 4Valero completed the acquisition of Valero Energy Partners LP (VLP) on January 10, 2019, for $950 million, funded by cash on hand.
- 5The company's liquidity remains strong, with $8.024 billion in liquidity as of March 31, 2019, including $5.354 billion in available borrowing capacity.
- 6The company has revised its reportable segments to include 'renewable diesel' as a distinct segment, reflecting growing investments in this area.
- 7Capital expenditures for 2019 are expected to be around $2.5 billion, with approximately 60% allocated to sustaining capital and 40% to growth strategies.