Summary
Valero Energy Corporation (VLO) reported a significant turnaround in its financial performance for the third quarter of 2021, achieving net income of $463 million, a stark contrast to the $464 million net loss in the same period of the prior year. This improvement was driven primarily by a substantial increase in operating income, fueled by stronger refining margins, particularly for gasoline and distillates, and increased throughput volumes. While the nine-month period still showed a net loss of $79 million, this was a considerable improvement from the $1.1 billion loss in the first nine months of 2020, indicating a positive recovery trajectory. The company's liquidity remains robust, with $8.5 billion in total liquidity as of September 30, 2021, supported by strong operational cash flow generation. Despite significant capital investments, dividend payments, and debt redemptions, Valero managed to increase its cash and cash equivalents. The company's outlook suggests continued recovery, with expectations of stable gasoline and diesel demand, moderating renewable diesel margins, and improved ethanol margins due to lower corn prices.
Financial Highlights
44 data points| Revenue | $29.52B |
| Cost of Revenue | $28.60B |
| Gross Profit | $918.00M |
| Operating Income | $693.00M |
| Interest Expense | $152.00M |
| Net Income | $463.00M |
| EPS (Basic) | $1.13 |
| EPS (Diluted) | $1.13 |
| Shares Outstanding (Basic) | 407.00M |
| Shares Outstanding (Diluted) | 408.00M |
Key Highlights
- 1Valero reported a net income of $463 million for Q3 2021, a substantial recovery from a $464 million net loss in Q3 2020.
- 2Nine-month period results improved significantly with a net loss of $79 million in 2021, compared to a $1.1 billion net loss in 2020.
- 3Refining segment operating income saw a strong rebound, driven by higher gasoline and distillate margins and increased throughput volumes.
- 4The company maintained a strong liquidity position with $8.5 billion available as of September 30, 2021.
- 5Capital expenditures remain a focus, with significant investments allocated to sustaining the business and growing the renewable diesel segment.
- 6Valero's outlook anticipates continued recovery with expected seasonal patterns in gasoline and diesel demand and improved ethanol margins.