SAN ANTONIO - Valero Energy Corporation (NYSE:VLO) today announced its financial results for the first quarter of 2024, with adjusted earnings per share (EPS) exceeding analyst expectations. The stock was up 0.49% in premarket trading.
The company reported an adjusted EPS of $3.82, surpassing the analyst estimate of $3.20. However, revenue for the quarter fell short of forecasts, coming in at $31.76 billion against the consensus estimate of $31.97 billion.
Valero's first-quarter results showed a significant decrease compared to the same period last year, with net income attributable to Valero stockholders at $1.2 billion, or $3.75 per share, down from $3.1 billion, or $8.29 per share, in the first quarter of 2023. The adjusted net income also saw a decline from the previous year's $3.1 billion, or $8.27 per share.
The Refining segment reported operating income of $1.7 billion for the quarter, a decrease from $4.1 billion in the first quarter of 2023. Refining throughput volumes averaged 2.8 million barrels per day. Lane Riggs, Valero's Chief Executive Officer and President, commented on the quarter's performance, "We are pleased to report strong financial results for the first quarter despite heavy planned maintenance across our refining system. Our team's ability to optimize and maximize throughput while undertaking maintenance activities illustrates the benefits from our long-standing commitment to safe and reliable operations."
The Renewable Diesel segment, consisting of the Diamond Green Diesel joint venture, reported operating income of $190 million, down from $205 million in the prior-year quarter. Sales volumes increased due to additional volumes from the DGD Port Arthur plant, which began operations in the fourth quarter of 2022. The Ethanol segment reported operating income of $10 million, a decrease from $39 million in the first quarter of 2023.
The company's strategic update highlighted the progress of the Sustainable Aviation Fuel (SAF) project at the DGD Port Arthur plant, which is now expected to be operational in the fourth quarter of 2024. Riggs added, "We remain focused on the things that have been a hallmark of our strategy for over a decade – maintaining operating excellence, executing our projects well, discipline around capital investments, and our commitment to shareholder returns."
Valero returned $1.4 billion to stockholders through dividends and stock buybacks in the first quarter, maintaining a payout ratio of 74 percent of adjusted net cash provided by operating activities. The company also declared a regular quarterly cash dividend of $1.07 per share on January 18.
As of March 31, 2024, Valero's debt to capitalization ratio, net of cash and cash equivalents, was 17 percent, reflecting a strong financial position.
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