On October 26, 2023, Valero Energy Corp (VLO, Financial) released its third-quarter earnings report for 2023. The company reported a net income attributable to Valero stockholders of $2.6 billion, or $7.49 per share, compared to $2.8 billion, or $7.19 per share, for the third quarter of 2022.
Financial Highlights
The Refining segment reported operating income of $3.4 billion for the third quarter of 2023, compared to $3.8 billion for the same period in 2022. The Renewable Diesel segment reported $123 million of operating income for the third quarter of 2023, compared to $212 million for the same period in 2022. The Ethanol segment reported $197 million of operating income for the third quarter of 2023, compared to $1 million for the same period in 2022.
Investing and Financing Activities
Net cash provided by operating activities was $3.3 billion in the third quarter of 2023. Capital investments totaled $394 million in the third quarter of 2023, of which $303 million was for sustaining the business. Valero returned $2.2 billion to stockholders in the third quarter of 2023, of which $360 million was paid as dividends and $1.8 billion was for the purchase of approximately 13 million shares of common stock.
Liquidity and Financial Position
Valero ended the third quarter of 2023 with $9.2 billion of total debt, $2.3 billion of finance lease obligations, and $5.8 billion of cash and cash equivalents. The debt to capitalization ratio, net of cash and cash equivalents, was 17 percent as of September 30, 2023.
Strategic Update
The Sustainable Aviation Fuel (SAF) project at the DGD Port Arthur plant remains on schedule and is expected to be completed in 2025 and cost $315 million, with half of that attributable to Valero. The project is expected to give the plant the optionality to upgrade approximately 50 percent of its current 470 million gallon renewable diesel annual production capacity to SAF.
About Valero
Valero Energy Corporation, through its subsidiaries, is a multinational manufacturer and marketer of petroleum-based and low-carbon liquid transportation fuels and petrochemical products. It sells its products primarily in the United States, Canada, the United Kingdom, Ireland, and Latin America.
Explore the complete 8-K earnings release (here) from Valero Energy Corp for further details.
