Valero Energy Tops Q2 Estimates

Valero Energy Corp VLO reported Q2 2023 revenues of $34.5 billion, beating the consensus of $34.37 billion.

Operating income fell significantly to $2.8 billion from $6.2 billion a year ago.

The Refining segment's operating income declined to $2.4 billion from $6.2 billion a year ago, with throughput volumes averaging 3.0 million barrels daily.

Operating income at the Renewable Diesel segment came in at $440 million, higher than $152 million in the prior year, with sales volumes averaging 4.4 million gallons per day (up +2.2 million Y/Y) on volume addition from the startup of the DGD Port Arthur plant in Q4 2022.

The Ethanol segment's operating income was $127 million (vs. $101 million a year ago), with production volumes averaging 4.4 million gallons per day in Q2.

Adjusted EPS of $5.40 came above the consensus of $5.08.

In Q2, Valero repurchased shares worth $951 million and paid dividends worth $367 million. 

Operating cash flow stood at $1.5 billion in Q2 2023. Capital investment was $458 million in Q2 compared to $653 million a year ago.

Valero's cash and equivalents stood at $5.1 billion at the end-Q2. It held a debt of $9.1 billion as of quarter-end.

Dividend: Last week, the company declared a quarterly cash dividend of $1.02 per share, payable on September 5, 2023, to stockholders of record as on August 3, 2023.

Price Action: VLO shares are trading lower by 0.74% at $125.25 on the last check Thursday.