Valero Energy Delivers Solid Q3: Ethanol, Renewable Diesel Volumes Rise

Benzinga10-24

Valero Energy Corporation (NYSE:VLO) shares are trading higher after the company reported third-quarter FY24 revenues of $32.876 billion, beating the consensus of $31.131 billion.

The Refining segment posted an operating income of $565 million, down from $3.4 billion in the prior year quarter.

During this quarter, refining throughput averaged 2.9 million barrels per day amid significant maintenance activities.

Operating income from the Ethanol segment stood at $153 million, down from $197 million in the third quarter of 2023.

Production volumes averaged 4.6 million gallons per day, up 255 thousand gallons per day compared to the previous year.

The Renewable Diesel segment recorded an operating income of $35 million, down from $123 million in the year-ago quarter.

Sales volumes averaged 3.5 million gallons per day during the quarter, up 552 thousand gallons per day Y/Y.

Adj. EPS of $1.14 exceeded the consensus of $0.98. Operating cash flow came in at $1.3 billion in the quarter.

Valero returned $907 million to stockholders, comprising $342 million in dividends and $565 million worth of share repurchases.

Valero ended the quarter with $8.4 billion of total debt and $5.2 billion of cash and cash equivalents.

Lane Riggs, Valero's chief executive officer and president said, "The DGD SAF project was completed on schedule and under budget and is a testament to the strength of our project and operations teams,"

Investors can gain exposure to the stock via VanEck Oil Refiners ETF (NYSE:CRAK) and Invesco Energy Exploration & Production ETF (NYSE:PXE).

Price Action: VLO shares are down 2.05% at $130.16 at the last check Thursday.

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