Yahoo Finance Valero (VLO) Q1 Earnings Beat on Higher Refinery Throughput
Valero Energy Corporation VLO has reported first-quarter 2023 adjusted earnings of $8.27 per share, significantly improving from $2.31 in the year-ago quarter. The bottom line beat the Zacks Consensus Estimate of $7.24 per share.
Total quarterly revenues declined from $38,542 million in the prior-year quarter to $36,439 million. The top line surpassed the Zacks Consensus Estimate of $34,207 million.
Strong quarterly earnings have been driven by increased refinery throughput volumes and a higher refining margin per barrel of throughput.
Valero Energy Corporation Price, Consensus and EPS Surprise
Valero Energy Corporation price-consensus-eps-surprise-chart | Valero Energy Corporation Quote
Segmental Performance
Adjusted operating income in the Refining segment amounted to $4,067 million, improving from $1,469 million in the year-ago quarter. Higher refinery throughput volumes aided the segment.
In the Ethanol segment, Valero reported an adjusted operating profit of $39 million, up from $2 million in the year-ago quarter. Higher ethanol production volumes aided the segment.
Operating income in the Renewable Diesel segment increased to $205 million from $149 million in the year-ago quarter. Renewable diesel sales volumes increased to 2,988 thousand gallons per day from 1,738 thousand gallons per day a year ago.
Throughput Volumes
In the quarter, Valero’s refining throughput volumes were 2,930 thousand barrels per day (MBbls/d), up from the 2,800 MBbls/d reported in the first quarter of 2022.
In terms of feedstock composition, sweet crude, medium/light sour crude and heavy sour crude accounted for 50.8%, 11% and 11.7%, respectively, of the total volume. The remaining volume came from residuals, other feedstock, and blendstocks and others.
The Gulf Coast contributed 58.5% to the total throughput volume. Mid-Continent, North Atlantic and West Coast regions accounted for 16.8%, 15.8% and 9%, respectively, of the total throughput volume.
Throughput Margins
The refining margin per barrel of throughput significantly increased to $22.37 from the year-ago level of $12.74. Refining operating expenses per barrel of throughput was $4.78 compared with $4.73 in the year-ago quarter.
Depreciation and amortization expenses declined to $2.17 a barrel from $2.18 in the prior-year quarter. As such, Valero’s adjusted refining operating income was $15.42 per barrel of throughput compared with $5.83 in the prior-year quarter.
Cost of Sales
Valero’s total cost of sales declined to $32,132 million in the first quarter from the year-ago figure of $36,923 million primarily due to lower material costs.
Capital Investment & Balance Sheet
The first-quarter capital investment was $524 million. Of the total, $341 million was allotted for sustaining the business.
At the first-quarter end, the company had cash and cash equivalents of $5,521 million. As of Mar 31, 2023, it had total debt and finance lease obligations of $11,431 million.
Zacks Rank & Stocks to Consider
Valero currently carries a Zacks Rank #3 (Hold).
Investors interested in the energy sector might look at the following companies that presently flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Sunoco LP SUN is scheduled to release first-quarter results on May 2. Valued at $4.5 billion, Sunoco has gained 8.3% in a year against the 3.4% decline of the composite stocks belonging to the industry.
Sunoco has an Earnings ESP of +5.66%. The Zacks Consensus Estimate for SUN’s earnings is pegged at $1.21 per share, suggesting a decline from the prior-year reported figure.
Cactus Inc. WHD is scheduled to release first-quarter results on May 9. Compared with composite stocks belonging to the industry, Cactus has significantly lower exposure to debt capital.
Cactus has an Earnings ESP of +1.79%. The Zacks Consensus Estimate for WHD’s earnings is pegged at 56 cents per share, suggesting an increase from the prior-year reported figure.
Marathon Petroleum Corporation MPC is scheduled to release first-quarter 2023 earnings on May 2. Valued at around $55 billion, the company has gained 41.1% in a year compared with 9.6% growth of the composite stocks belonging to the industry.
Marathon Petroleum has seen an upward revision in earnings estimates for 2023 in the past seven days. The Zacks Consensus Estimate for MPC’s earnings is pegged at $5.44 per share, suggesting an increase from the prior-year reported figure.
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