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Valero (VLO) Q2 Earnings Beat on Higher Throughput Volumes
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Valero Energy Corporation (VLO - Free Report) has reported second-quarter 2022 adjusted earnings of $11.36 per share, improving from 48 cents per share in the year-ago quarter. The bottom line comfortably beat the Zacks Consensus Estimate of $9.7 per share.
Total quarterly revenues increased from $27,748 million in the prior-year quarter to $51,641 million. The top line also surpassed the Zacks Consensus Estimate of $40,635 million.
The strong quarterly results have been driven by increased refinery throughput volumes and a higher refining margin.
Valero Energy Corporation Price, Consensus and EPS Surprise
Adjusted operating income in the Refining segment amounted to $6,122 million, improving from $442 million reported in the year-ago quarter. Higher refinery throughput volumes aided the segment.
In the Ethanol segment, Valero reported an adjusted operating profit of $79 million, down from $99 million in the year-ago quarter. Lower ethanol production volumes hurt the segment. Production declined to 3,861 thousand gallons per day from 4,203 thousand gallons a year ago.
Operating income in the Renewable Diesel segment declined to $152 million from $248 million in the year-ago quarter. Yet, renewable diesel sales volumes increased to 2,182 thousand gallons per day from 923 thousand gallons a year ago.
Throughput Volumes
For the quarter, Valero’s refining throughput volumes were 2,962 thousand barrels per day (MBbls/d), up from 2,835 MBbls/d in second-quarter 2021.
In terms of feedstock composition, sweet crude, medium/light sour crude, and heavy sour crude accounted for 47.7%, 14.9%, and 12.7%, respectively, of the total volume. The remaining volume came from residuals, other feedstock, and blendstocks and others.
The Gulf Coast contributed 59% to the total throughput volume. Mid-Continent, North Atlantic, and West Coast regions accounted for 15.2%, 16.3% and 9.5%, respectively, of the total throughput volume.
Throughput Margins
The refining margin per barrel of throughput significantly increased to $30.01 from the year-ago level of $7.95. Refining operating expenses per barrel of throughput was $5.20 compared with $4.13 in the year-ago quarter.
Depreciation and amortization expenses declined to $2.10 a barrel from $2.11 in the prior-year quarter. As such, Valero’s adjusted refining operating income was $22.71 per barrel of throughput compared with $1.71 in the prior-year quarter.
Cost of Sales
Valero’s total cost of sales surged to $45,162 million in the second quarter from the year-ago figure of $27,039 million primarily due to the higher cost of materials.
Capital Investment & Balance Sheet
The second-quarter capital investment was $653 million. Of the total, $298 million was allotted for sustaining the business.
At the second-quarter end, the Zacks Rank #2 (Buy) company had cash and cash equivalents of $5,392 million. As of Jun 30, 2022, it had total debt and finance lease obligations of $12,880 million. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
A Glimpse of Other Players’ Q2 Earnings
Hess Corporation (HES - Free Report) reported second-quarter 2022 earnings per share of $2.15, beating the Zacks Consensus Estimate of $2.07. The strong quarterly results were driven by higher realizations of commodity prices.
Hess has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days. The company currently has a Zacks Style Score of B for Growth and Momentum. Hess is expected to see earnings growth of 329.2% in 2022.
Kinder Morgan Inc. (KMI - Free Report) reported second-quarter 2022 adjusted earnings per share of 27 cents, in line with the Zacks Consensus Estimate. Contributions from natural gas pipelines and Products Pipelines primarily aided KMI’s second-quarter results.
Kinder Morgan has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days. The company currently has a Zacks Style Score of B for Growth and A for Momentum. For 2022, KMI forecasts DCF generation of $4.7 billion and adjusted EBITDA of $7.2 billion.
Schlumberger Limited (SLB - Free Report) reported second-quarter 2022 earnings of 50 cents per share (excluding charges and credits), beating the Zacks Consensus Estimate of 40 cents. The strong quarterly results were primarily driven by higher sales of exploration data licensing, and robust drilling activities in land, and offshore resources in North America and the international market.
Schlumberger has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days. The company currently has a Zacks Style Score of A for Momentum, and B for Value and Growth. Schlumbergeris expected to see earnings growth of 56.3% in 2022.
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Valero (VLO) Q2 Earnings Beat on Higher Throughput Volumes
Valero Energy Corporation (VLO - Free Report) has reported second-quarter 2022 adjusted earnings of $11.36 per share, improving from 48 cents per share in the year-ago quarter. The bottom line comfortably beat the Zacks Consensus Estimate of $9.7 per share.
Total quarterly revenues increased from $27,748 million in the prior-year quarter to $51,641 million. The top line also surpassed the Zacks Consensus Estimate of $40,635 million.
The strong quarterly results have been driven by increased refinery throughput volumes and a higher refining margin.
Valero Energy Corporation Price, Consensus and EPS Surprise
Valero Energy Corporation price-consensus-eps-surprise-chart | Valero Energy Corporation Quote
Segmental Performance
Adjusted operating income in the Refining segment amounted to $6,122 million, improving from $442 million reported in the year-ago quarter. Higher refinery throughput volumes aided the segment.
In the Ethanol segment, Valero reported an adjusted operating profit of $79 million, down from $99 million in the year-ago quarter. Lower ethanol production volumes hurt the segment. Production declined to 3,861 thousand gallons per day from 4,203 thousand gallons a year ago.
Operating income in the Renewable Diesel segment declined to $152 million from $248 million in the year-ago quarter. Yet, renewable diesel sales volumes increased to 2,182 thousand gallons per day from 923 thousand gallons a year ago.
Throughput Volumes
For the quarter, Valero’s refining throughput volumes were 2,962 thousand barrels per day (MBbls/d), up from 2,835 MBbls/d in second-quarter 2021.
In terms of feedstock composition, sweet crude, medium/light sour crude, and heavy sour crude accounted for 47.7%, 14.9%, and 12.7%, respectively, of the total volume. The remaining volume came from residuals, other feedstock, and blendstocks and others.
The Gulf Coast contributed 59% to the total throughput volume. Mid-Continent, North Atlantic, and West Coast regions accounted for 15.2%, 16.3% and 9.5%, respectively, of the total throughput volume.
Throughput Margins
The refining margin per barrel of throughput significantly increased to $30.01 from the year-ago level of $7.95. Refining operating expenses per barrel of throughput was $5.20 compared with $4.13 in the year-ago quarter.
Depreciation and amortization expenses declined to $2.10 a barrel from $2.11 in the prior-year quarter. As such, Valero’s adjusted refining operating income was $22.71 per barrel of throughput compared with $1.71 in the prior-year quarter.
Cost of Sales
Valero’s total cost of sales surged to $45,162 million in the second quarter from the year-ago figure of $27,039 million primarily due to the higher cost of materials.
Capital Investment & Balance Sheet
The second-quarter capital investment was $653 million. Of the total, $298 million was allotted for sustaining the business.
At the second-quarter end, the Zacks Rank #2 (Buy) company had cash and cash equivalents of $5,392 million. As of Jun 30, 2022, it had total debt and finance lease obligations of $12,880 million. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
A Glimpse of Other Players’ Q2 Earnings
Hess Corporation (HES - Free Report) reported second-quarter 2022 earnings per share of $2.15, beating the Zacks Consensus Estimate of $2.07. The strong quarterly results were driven by higher realizations of commodity prices.
Hess has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days. The company currently has a Zacks Style Score of B for Growth and Momentum. Hess is expected to see earnings growth of 329.2% in 2022.
Kinder Morgan Inc. (KMI - Free Report) reported second-quarter 2022 adjusted earnings per share of 27 cents, in line with the Zacks Consensus Estimate. Contributions from natural gas pipelines and Products Pipelines primarily aided KMI’s second-quarter results.
Kinder Morgan has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days. The company currently has a Zacks Style Score of B for Growth and A for Momentum. For 2022, KMI forecasts DCF generation of $4.7 billion and adjusted EBITDA of $7.2 billion.
Schlumberger Limited (SLB - Free Report) reported second-quarter 2022 earnings of 50 cents per share (excluding charges and credits), beating the Zacks Consensus Estimate of 40 cents. The strong quarterly results were primarily driven by higher sales of exploration data licensing, and robust drilling activities in land, and offshore resources in North America and the international market.
Schlumberger has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days. The company currently has a Zacks Style Score of A for Momentum, and B for Value and Growth. Schlumbergeris expected to see earnings growth of 56.3% in 2022.