Valero (VLO) Q1 Earnings Beat Estimates, Revenues Miss

Core Viewpoint - Valero Energy Corporation reported first-quarter 2024 adjusted earnings of $3.82 per share, exceeding the Zacks Consensus Estimate of $3.18, but down from $8.27 in the same quarter last year. Total revenues fell to $31,759 million from $36,439 million year-over-year, missing the consensus estimate of $32,826 million. The better-than-expected earnings were mainly due to a decline in total cost of sales [1]. Segmental Performance - Adjusted operating income in the Refining segment was $1,745 million, down from $4,057 million year-over-year, and below the estimate of $1,759.6 million, impacted by declining throughput volumes and lower refining margins [2]. - The Ethanol segment reported an adjusted operating profit of $39 million, consistent with the previous year, supported by higher production volumes [2]. - Operating income in the Renewable Diesel segment decreased to $190 million from $205 million year-over-year, although sales volume increased to 3,729 thousand gallons per day from 2,988 thousand gallons [2]. Throughput Volumes - Valero's refining throughput volumes were 2,760 thousand barrels per day, down from 2,930 thousand barrels per day in the first quarter of 2023. The Gulf Coast region contributed 57.7% to total throughput volume [3]. Throughput Margins - The refining margin per barrel of throughput declined to $14.07 from $22.37 year-over-year. Adjusted refining operating income was $6.97 per barrel compared to $15.42 in the prior-year quarter [4]. Cost of Sales - Total cost of sales decreased to $29,776 million from $32,132 million year-over-year, primarily due to lower material costs and operating expenses [5]. Capital Investment & Balance Sheet - First-quarter capital investment totaled $661 million, with $563 million allocated for sustaining the business. Cash and cash equivalents stood at $4,917 million, while total debt and finance lease obligations were $10,897 million as of March 31, 2024 [6].