Early Access

10-QPeriod: Q1 FY2024

VALERO ENERGY CORP/TX Quarterly Report for Q1 Ended Mar 31, 2024

Filed April 25, 2024For Securities:VLO

Summary

Valero Energy Corporation (VLO) reported a significant decrease in net income attributable to stockholders for the first quarter of 2024, down to $1.245 billion ($3.75 per share) from $3.067 billion ($8.30 per share) in the prior year's comparable period. This decline was primarily driven by a substantial reduction in operating income, largely stemming from lower refining margins, particularly for distillates and gasoline, as well as a decrease in crude oil differentials and throughput volumes. Despite the year-over-year earnings drop, Valero generated $1.846 billion in cash flow from operating activities during the quarter. The company returned $1.4 billion to shareholders through stock repurchases and dividends, while also reducing its outstanding debt. Valero ended the quarter with $4.9 billion in cash and cash equivalents and maintained strong liquidity of $10.0 billion, indicating financial stability despite the challenging operating environment in the refining segment.

Financial Statements
Beta
Revenue$31.76B
Cost of Revenue$29.78B
Gross Profit$1.98B
Operating Income$1.68B
Interest Expense$140.00M
Net Income$1.25B
EPS (Basic)$3.75
EPS (Diluted)$3.75
Shares Outstanding (Basic)331.00M
Shares Outstanding (Diluted)331.00M

Key Highlights

  • 1Net income attributable to Valero stockholders decreased significantly to $1.245 billion ($3.75/share) from $3.067 billion ($8.30/share) year-over-year.
  • 2Operating income fell by $2.364 billion, largely driven by a $2.317 billion decrease in the Refining segment's adjusted operating income.
  • 3Lower refining margins, particularly for distillates and gasoline, along with reduced crude oil differentials and throughput volumes, were key factors impacting profitability.
  • 4Despite the decline in profitability, the company generated robust operating cash flow of $1.846 billion.
  • 5Valero returned $1.4 billion to stockholders via stock repurchases ($1.023 billion) and dividends ($356 million).
  • 6Total assets decreased slightly to $62.574 billion from $63.056 billion, while total equity increased to $28.824 billion from $28.524 billion.
  • 7The company maintained strong liquidity with $10.0 billion available at the end of the quarter.

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