Summary
Valero Energy Corporation's (VLO) third quarter 2019 results showed a decrease in net income attributable to stockholders, falling to $609 million from $856 million in the same period last year. This decline was primarily driven by lower operating income, which was impacted by weaker refining margins due to lower crude oil discounts and reduced throughput volumes, partially offset by improved distillate margins. The ethanol segment also faced headwinds from higher corn prices. Despite the year-over-year decline in quarterly profit, the company's renewable diesel segment demonstrated robust growth, with operating income increasing significantly due to higher sales volumes and favorable commodity derivative impacts. For the first nine months of 2019, net income attributable to stockholders also saw a substantial decrease compared to the prior year, reflecting similar trends in the refining segment. The company maintained a strong liquidity position with $7.4 billion in available borrowing capacity and cash, and continued its share repurchase program, underscoring a focus on returning capital to shareholders.
Financial Highlights
46 data points| Revenue | $27.25B |
| Cost of Revenue | $26.13B |
| Gross Profit | $1.12B |
| Operating Income | $881.00M |
| Interest Expense | $111.00M |
| Net Income | $609.00M |
| EPS (Basic) | $1.48 |
| EPS (Diluted) | $1.48 |
| Shares Outstanding (Basic) | 412.00M |
| Shares Outstanding (Diluted) | 413.00M |
Key Highlights
- 1Net income attributable to Valero stockholders decreased by $247 million year-over-year in Q3 2019, reaching $609 million.
- 2Refining segment operating income decreased by $337 million in Q3 2019 compared to Q3 2018, primarily due to weaker crude oil discounts and lower throughput volumes.
- 3Renewable diesel segment operating income increased significantly by $70 million in Q3 2019 compared to Q3 2018, driven by higher sales volumes and favorable derivative impacts.
- 4Total cash flows from operating activities for the first nine months of 2019 were $3.8 billion, an increase from $2.7 billion in the prior year period.
- 5The company's liquidity remains strong, with $7.4 billion in available borrowing capacity and cash as of September 30, 2019.
- 6Valero continued its share repurchase program, with $1.7 billion remaining available under its stock purchase program as of September 30, 2019.