Valero Energy Corporation (NYSE: VLO) announced its financial results for the second quarter of 2024, revealing a notable decrease in net income. The company reported net income attributable to Valero stockholders of $880 million, or $2.71 per share, down significantly from $1.9 billion, or $5.40 per share, in the same period last year.
In the refining sector, Valero saw a decline in operating income to $1.2 billion from $2.4 billion in Q2 2023. Despite this, the company highlighted robust performance in its U.S. wholesale system, with sales surpassing one million barrels per day. Lane Riggs, Valero's Chief Executive Officer and President, stated, "We see continued strength in our U.S. wholesale system with sales exceeding one million barrels per day in the second quarter."
The Renewable Diesel segment also faced challenges, with operating income plummeting to $112 million from $440 million year-over-year. This drop was attributed to lower sales volumes and reduced margins due to planned maintenance activities. The segment's sales volumes averaged 3.5 million gallons per day, down by 908 thousand gallons compared to Q2 2023.
On a brighter note, the Ethanol segment posted $105 million in operating income, a slight decrease from $127 million in the previous year. Production volumes increased modestly to 4.5 million gallons per day.
Valero continued its commitment to shareholders by returning $1.4 billion through dividends and stock buybacks. The company declared a quarterly cash dividend of $1.07 per share, payable on September 3, 2024. The payout ratio for the quarter stood at 87 percent of adjusted net cash provided by operating activities.
Looking ahead, Valero remains focused on its Sustainable Aviation Fuel (SAF) project at the DGD Port Arthur plant, expected to be operational by Q4 2024. This project aims to upgrade a significant portion of the plant's renewable diesel capacity to SAF, positioning Valero as a leading SAF producer globally.
By Julianne Geiger for Oilprice.com
More Top Reads From Oilprice.com:
Julianne Geiger is a veteran editor, writer and researcher for Oilprice.com, and a member of the Creative Professionals Networking Group. More
Comments