Valero Energy Earnings Cheat Sheet: Another Oil Revenue Success Story

S&P 500 (NYSE:SPY) component Valero Energy Corporation (NYSE:VLO) reported its results for the first quarter. Valero Energy Corporation is an independent refining and marketing company, which owns and operates refineries that produce conventional gasolines, distillates, jet fuel, asphalt, petrochemicals, and lubricants.

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Valero Energy Earnings Cheat Sheet for the First Quarter

Results: Swung to a profit of $98 million (17 cents/diluted share) in the quarter. The Valero Energy Corporation had a net loss of $113 million or a loss 20 cents per share in the year earlier quarter.

Revenue: Rose 33.9% to $26.31 billion YoY.

Actual vs. Wall St. Expectations: The mean estimate was 30 cents/share with adjustments.

Quoting Management: “Clearly, the first quarter was a much better start to the year than last year,” said Valero Chairman and CEO Bill Klesse. “Our refining system experienced strong margins and turned in solid results despite a heavy maintenance schedule and associated restart delays. We also announced the acquisition of Chevron’s (NYSE:CVX) Pembroke refinery, marketing, and logistics assets in the United Kingdom and Ireland. These attractively priced assets will improve the competitiveness of our asset portfolio and should be immediately accretive to earnings upon closing in the third quarter.”

Key Stats: The company has enjoyed double-digit year-over-year revenue growth for the past five quarters. Over that span, the company has averaged growth of 24.3%, with the biggest boost coming in the first quarter of the last fiscal year when revenue rose 42.1% from the year earlier quarter.

Gross margins grew 3.6 percentage points to 6.6%. The growth seemed to be driven by increased revenue, as the figure rose 33.9% from the year earlier quarter while costs rose 29%.

Competitors to Watch: Tesoro Corporation (NYSE:TSO), Alon USA Energy, Inc. (NYSE:ALJ), Western Refining, Inc. (NYSE:WNR), CVR Energy, Inc. (NYSE:CVI), Sunoco, Inc. (NYSE:SUN), Holly Corporation (NYSE:HOC), Chevron Corporation (NYSE:CVX), Frontier Oil Corporation (NYSE:FTO), Delek US Holdings, Inc. (NYSE:DK), BP plc (NYSE:BP), ConocoPhillips (NYSE:COP), United States Oil (NYSE:USO), Marathon (NYSE:MRO), Hess (NYSE:HES), TOTAL (NYSE:TOT), Suncor (NYSE:SU), Petroleo Brasileiro (NYSE:PBR) and Exxon Mobil Corporation (NYSE:XOM).

Today’s Performance: Shares of VLO are flat in today’s trading.


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