Summary
Valero Energy Corp./TX (VLO) reported a net loss attributable to stockholders of $704 million for the first quarter of 2021, a significant improvement from the $1.9 billion net loss in the same period of 2020. This improvement was primarily driven by a lower operating loss, partly due to the absence of a large $2.5 billion LCM inventory valuation adjustment that impacted the prior year's first quarter. However, the company highlighted substantial excess energy costs of $579 million due to Winter Storm Uri, which significantly impacted its first-quarter results. Despite these challenges, the company observed signs of recovery in demand and market prices for gasoline and diesel, approaching pre-pandemic levels by March 2021. The company's liquidity remained robust, with $7.97 billion in total liquidity as of March 31, 2021, although cash and cash equivalents decreased by $1.0 billion during the quarter to $2.25 billion. This decrease was attributed to operational cash usage, capital investments, and dividend payments. Valero continues to navigate the uncertain economic environment shaped by the COVID-19 pandemic, with ongoing efforts to manage costs and align operations with market demand.
Financial Highlights
44 data points| Revenue | $20.81B |
| Cost of Revenue | $21.21B |
| Gross Profit | -$408.00M |
| Operating Income | -$666.00M |
| Interest Expense | $149.00M |
| Net Income | -$704.00M |
| EPS (Basic) | $-1.73 |
| EPS (Diluted) | $-1.73 |
| Shares Outstanding (Basic) | 407.00M |
| Shares Outstanding (Diluted) | 407.00M |
Key Highlights
- 1Reported a net loss of $704 million for Q1 2021, an improvement from a $1.9 billion loss in Q1 2020.
- 2Winter Storm Uri resulted in an estimated $579 million in excess energy costs during Q1 2021.
- 3Revenue decreased by $1.3 billion to $20.8 billion in Q1 2021 compared to $22.1 billion in Q1 2020.
- 4Operating loss improved significantly to $666 million in Q1 2021 from $2.3 billion in Q1 2020, aided by the absence of a large LCM inventory valuation adjustment from the prior year.
- 5Total liquidity remained strong at $7.97 billion as of March 31, 2021.
- 6Cash and cash equivalents decreased by $1.0 billion during the quarter to $2.25 billion, primarily due to operational cash usage and capital expenditures.
- 7The company noted recovery in demand and market prices for gasoline and diesel, reaching near pre-pandemic levels by March 2021.