Summary
Valero Energy Corp/TX (VLO) reported its second quarter and first six months of 2024 financial results, showing a significant decrease in net income compared to the prior year. For the three months ended June 30, 2024, net income attributable to Valero stockholders was $880 million ($2.71 per share), a substantial drop from $1.9 billion ($5.41 per share) in the same period of 2023. This decline was primarily driven by lower operating income across all segments, particularly in Refining, due to reduced margins for gasoline and distillates, and lower crude oil differentials. Despite the year-over-year decrease in profitability, the company's operations generated $4.3 billion in cash flow from operating activities for the first six months of 2024. Valero utilized this strong cash generation to invest $1.1 billion in capital expenditures, return $2.8 billion to stockholders through share repurchases and dividends, and reduce its outstanding debt. As of June 30, 2024, the company maintained a healthy liquidity position of $10.1 billion, indicating financial stability to meet ongoing obligations.
Financial Highlights
44 data points| Revenue | $34.49B |
| Cost of Revenue | $33.05B |
| Gross Profit | $1.44B |
| Operating Income | $1.22B |
| Interest Expense | $140.00M |
| Net Income | $880.00M |
| EPS (Basic) | $2.71 |
| EPS (Diluted) | $2.71 |
| Shares Outstanding (Basic) | 324.00M |
| Shares Outstanding (Diluted) | 324.00M |
Key Highlights
- 1Net income attributable to Valero stockholders significantly decreased to $880 million ($2.71/share) for Q2 2024, down from $1.9 billion ($5.41/share) in Q2 2023, primarily due to lower refining margins.
- 2For the first six months of 2024, net income attributable to Valero stockholders was $2.1 billion ($6.47/share), a decrease from $5.0 billion ($13.75/share) in the first six months of 2023.
- 3Total revenues remained relatively flat for Q2 2024 at $34.5 billion compared to $34.5 billion in Q2 2023, but decreased by approximately $4.7 billion year-over-year for the first six months.
- 4Operating income for the Refining segment, the largest contributor, saw a substantial decline, decreasing by $1.2 billion year-over-year for Q2 and $3.5 billion for the first six months.
- 5The Renewable Diesel segment's operating income decreased by $328 million in Q2 and $343 million for the first six months, largely due to lower product prices and reduced sales volumes.
- 6The company generated $4.3 billion in cash flow from operations for the first six months of 2024.
- 7Valero returned $2.8 billion to stockholders through share repurchases ($2.1 billion) and dividends ($0.7 billion) in the first six months of 2024, while also reducing debt.