Valero(VLO)2025-01-30 13:20Financial Performance - Valero reported net income attributable to stockholders of $281 million, or $0.88 per share, for Q4 2024, down from $1.2 billion, or $3.55 per share, in Q4 2023[3]. - For the full year 2024, net income attributable to stockholders was $2.8 billion, or $8.58 per share, compared to $8.8 billion, or $24.92 per share, in 2023[4]. - Net income attributable to Valero Energy Corporation stockholders for the three months ended December 31, 2024, was $281 million, compared to $1,202 million for the same period in 2023, a decrease of 76.7%[31]. - Adjusted net income attributable to Valero Energy Corporation stockholders for the year ended December 31, 2024, was $2,739 million, down from $8,850 million in 2023, a decline of 69.0%[31]. - Total revenues for the year ended December 31, 2024, were $129,881 million, a decrease of 10.2% from $144,766 million in 2023[29]. - Net cash provided by operating activities was $1.1 billion in Q4 2024, with adjusted net cash provided by operating activities at $951 million[9]. - Valero's adjusted net cash provided by operating activities for the year ended December 31, 2024, was $5,517 million, a decrease of 50.0% from $11,043 million in 2023[59]. Segment Performance - The Refining segment reported operating income of $437 million for Q4 2024, a significant decrease from $1.6 billion in Q4 2023, with throughput volumes averaging 3.0 million barrels per day[5]. - The Renewable Diesel segment achieved operating income of $170 million in Q4 2024, up from $84 million in Q4 2023, with sales volumes averaging 3.4 million gallons per day[6]. - Operating income for the refining segment for the year ended December 31, 2024, was $3,971 million, down from $11,511 million in 2023, representing a decline of 65.5%[29]. - Refining operating income for Q4 2024 was $437 million, a decrease of 72.2% compared to $1,577 million in Q4 2023[34]. - Renewable Diesel operating income increased to $170 million in Q4 2024 from $84 million in Q4 2023, representing a growth of 102.4%[34]. - Ethanol operating income decreased to $20 million in Q4 2024 from $190 million in Q4 2023, a decline of 89.5%[34]. Shareholder Returns - Valero returned $601 million to stockholders in Q4 2024, including $339 million in dividends and $262 million in stock buybacks, resulting in a payout ratio of 63% of adjusted net cash provided by operating activities[12]. - The company increased its quarterly cash dividend by 6% to $1.13 per share on January 16, 2025[13]. - The company declared dividends per common share of $1.07 for the three months ended December 31, 2024, compared to $1.02 in the same period of 2023, representing a 4.9% increase[61]. Debt and Capital Expenditures - Valero's total debt at the end of 2024 was $8.1 billion, with a debt to capitalization ratio of 17%[14]. - The total debt of Valero as of December 31, 2024, was $8,085 million, down from $9,218 million in 2023, reflecting a reduction of 12.3%[59]. - Capital expenditures attributable to Valero for the year ended December 31, 2024, were $1,888 million, an increase of 7.4% compared to $1,758 million in 2023[61]. - The capital investments expected for the year ending December 31, 2025, are projected to be $1,950 million after adjustments[61]. Operational Developments - The Sustainable Aviation Fuel (SAF) project at the DGD Port Arthur plant was completed and is now operational, allowing for the upgrade of approximately 50% of its renewable diesel production capacity to SAF[15]. - Valero is progressing with an FCC Unit Optimization project at the St. Charles Refinery, estimated to cost $230 million and expected to be completed in 2026[16]. Market Conditions - Brent crude oil price averaged $73.98 per barrel in Q4 2024, down from $82.72 per barrel in Q4 2023, a decrease of 11%[56]. - The average market reference price for ULS diesel was $2.23 per gallon for the three months ended December 31, 2024, down 21.8% from $2.85 per gallon in 2023[57]. - The biodiesel Renewable Identification Number (RIN) price was $0.66 per RIN for the three months ended December 31, 2024, down 21.4% from $0.84 in 2023[57]. Performance Metrics - The refining margin is a key performance measure, defined as refining segment operating income excluding operating expenses, depreciation, and amortization, which is critical for evaluating the segment's financial performance[69]. - Renewable Diesel margin is similarly defined and is essential for assessing the Renewable Diesel segment's operating and financial performance[69]. - Ethanol margin is defined as Ethanol segment operating income excluding operating expenses and is a significant measure for evaluating the Ethanol segment's performance[69]. - Adjusted refining operating income for the period is an important measure as it excludes non-core operating performance items[69].