Valero(US:VLO)2025-10-23 12:20Financial Performance - Valero reported net income attributable to stockholders of $1.1 billion, or $3.53 per share, for Q3 2025, compared to $364 million, or $1.14 per share, in Q3 2024[2] - Revenues for Q3 2025 were $32.168 billion, compared to $32.876 billion in Q3 2024[22] - Total revenues for the three months ended September 30, 2025, were $32,168 million, a decrease from $32,876 million in the same period of 2024, representing a decline of 2.1%[25] - Operating income for the three months ended September 30, 2025, was $1,509 million, compared to $507 million in the same period of 2024, indicating a significant increase of 196.1%[25] - Net income attributable to Valero Energy Corporation stockholders for the three months ended September 30, 2025, was $1,095 million, up from $364 million in the same period of 2024, an increase of 200.3%[29] - Adjusted net income attributable to Valero Energy Corporation stockholders for the nine months ended September 30, 2025, was $2,130 million, compared to $2,532 million in the same period of 2024, a decrease of 15.9%[29] - Earnings per common share for the three months ended September 30, 2025, was $3.53, compared to $1.14 in the same period of 2024, an increase of 209.6%[29] Segment Performance - The Refining segment achieved operating income of $1.6 billion in Q3 2025, up from $565 million in Q3 2024, with throughput volumes averaging 3.1 million barrels per day[3] - The Renewable Diesel segment reported an operating loss of $28 million in Q3 2025, compared to operating income of $35 million in Q3 2024, with sales volumes averaging 2.7 million gallons per day[4][6] - Ethanol segment operating income increased to $183 million in Q3 2025 from $153 million in Q3 2024, with record production volumes of 4.6 million gallons per day[7] - Refining operating income for Q3 2025 was $1,610 million, a significant increase from $565 million in Q3 2024, representing a growth of 184%[32] - Renewable Diesel segment reported an operating loss of $28 million in Q3 2025, compared to a profit of $35 million in Q3 2024, marking a decline of 180%[32] - Ethanol operating income for Q3 2025 was $183 million, up from $153 million in Q3 2024, representing an increase of 19.6%[32] Cash Flow and Investments - Valero returned $1.3 billion to stockholders in Q3 2025, including $351 million in dividends and $931 million for stock buybacks, resulting in a payout ratio of 78% of adjusted net cash provided by operating activities[11] - Net cash provided by operating activities was $1.9 billion in Q3 2025, with adjusted net cash provided being $1.6 billion[9] - For the three months ended September 30, 2025, net cash provided by operating activities was $1,881 million, compared to $1,295 million for the same period in 2024, representing a 45.2% increase[56] - Capital investments totaled $409 million in Q3 2025, with $364 million allocated for sustaining the business[10] - Capital expenditures attributable to Valero for the three months ended September 30, 2025, were $382 million, compared to $394 million in 2024, a decrease of 3.0%[58] Debt and Equity - Valero ended Q3 2025 with $8.4 billion in total debt and $4.8 billion in cash and cash equivalents, resulting in a debt to capitalization ratio of 18%[13] - Total debt (excluding variable interest entities) as of September 30, 2025, was $8,235 million, an increase from $8,027 million as of December 31, 2024, representing a 2.6% rise[56] - Total equity decreased to $26,746 million as of September 30, 2025, from $27,521 million as of December 31, 2024, a decline of 2.8%[56] Market and Pricing - Brent crude oil price averaged $68.14 per barrel in Q3 2025, down from $78.37 in Q3 2024[53] - Renewable diesel prices averaged $2.35 per gallon for the three months ended September 30, 2025, compared to $2.31 in 2024, reflecting a 1.7% increase[54] - The average price for biodiesel Renewable Identification Number (RIN) was $1.13 for the three months ended September 30, 2025, up from $0.60 in 2024, a significant increase of 88.3%[54] Operational Metrics - Total throughput volumes for Q3 2025 were 3,087 thousand barrels per day, up from 2,884 thousand barrels per day in Q3 2024, reflecting an increase of 7%[39] - Total feedstocks processed in Q3 2025 were 2,741 thousand barrels per day, an increase from 2,518 thousand barrels per day in Q3 2024, reflecting a growth of 8.9%[39] - The refining margin for Q3 2025 reached $3,731 million, compared to $2,413 million in Q3 2024, indicating a year-over-year increase of 54.5%[32] - The refining margin per barrel of throughput for Q3 2025 was $13.14, compared to $9.09 in Q3 2024, showing an increase of 44.8%[39] Impairments and Adjustments - The company reported an asset impairment loss of $1,131 million for the nine months ended September 30, 2025[27] - The company recognized a combined asset impairment loss of $1.1 billion related to the Benicia and Wilmington refineries for the nine months ended September 30, 2025[62] - Employee retention and separation costs were adjusted out of operating expenses, with a total adjustment of $(50) million for both the Refining segment and the U.S. West Coast region in Q3 2025[66]