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Valero (VLO) Q3 Earnings Beat on Higher Throughput Volumes
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Valero Energy Corporation (VLO - Free Report) has reported third-quarter 2022 adjusted earnings of $7.14 per share, significantly improving from $1.22 per share in the year-ago quarter. The bottom line beat the Zacks Consensus Estimate of $7 per share.
Total quarterly revenues increased from $29,520 million in the prior-year quarter to $44,454 million. The top line also surpassed the Zacks Consensus Estimate of $39,015 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 $3,816 million, improving from $911 million in the year-ago quarter. Higher refinery throughput volumes aided the segment.
In the Ethanol segment, Valero reported an adjusted operating profit of $1 million, down from $4 million in the year-ago quarter. Lower ethanol production volumes hurt the segment. Production declined to 3,498 thousand gallons per day from 3,625 thousand gallons a year ago.
Operating income in the Renewable Diesel segment increased to $212 million from $109 million in the year-ago quarter. Renewable diesel sales volumes increased to 2,231 thousand gallons per day from 671 thousand gallons a year ago.
Throughput Volumes
For the quarter, Valero’s refining throughput volumes were 3,005 thousand barrels per day (MBbls/d), up from 2,864 MBbls/d reported in the third quarter of 2021.
In terms of feedstock composition, sweet crude, medium/light sour crude and heavy sour crude accounted for 49.2%, 16.5% and 10.8%, respectively, of the total volume. The remaining volume came from residuals, other feedstock, and blendstocks and others.
The Gulf Coast contributed 60.3% to the total throughput volume. Mid-Continent, North Atlantic, and West Coast regions accounted for 14.7%, 15.9% and 9.1%, respectively, of the total throughput volume.
Throughput Margins
The refining margin per barrel of throughput significantly increased to $21.34 from the year-ago level of $10.07. Refining operating expenses per barrel of throughput was $5.48 compared with $4.53 in the year-ago quarter.
Depreciation and amortization expenses declined to $2.06 a barrel from $2.08 in the prior-year quarter. As such, Valero’s adjusted refining operating income was $13.80 per barrel of throughput compared with $3.46 in the prior-year quarter.
Cost of Sales
Valero’s total cost of sales surged to $40,431 million in the third quarter from the year-ago figure of $28,602 million primarily due to higher material costs and operating expenses.
Capital Investment & Balance Sheet
The third-quarter capital investment was $602 million. Of the total, $185 million was allotted for sustaining the business.
At the third-quarter end, the company had cash and cash equivalents of $3,969 million. As of Sept 30, 2022, it had total debt and finance lease obligations of $11,576 million.
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Equinor is scheduled to report third-quarter results on Oct 28. The Zacks Consensus Estimate for EQNR’s earnings is pegged at $1.78 per share, suggesting a significant increase from the prior-year reported figure.
Cactus Inc. (WHD - Free Report) is involved in manufacturing, designing and selling wellhead and pressure-control equipment. At the second-quarter end, Cactus had cash and cash equivalents of $311.7 million, which can provide it with immense financial flexibility. WHD has a strong balance sheet. Per the company, it had no bank debt outstanding as of Jun 30, 2022.
Cactus is scheduled to report third-quarter results on Nov 7. The Zacks Consensus Estimate for WHD’s earnings is pegged at 49 cents per share, suggesting a significant increase from the prior-year reported figure.
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Williams is scheduled to report third-quarter results on Oct 31. The Zacks Consensus Estimate for WMB’s earnings is pegged at 43 cents per share, suggesting a significant increase from the prior-year reported figure.
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Valero (VLO) Q3 Earnings Beat on Higher Throughput Volumes
Valero Energy Corporation (VLO - Free Report) has reported third-quarter 2022 adjusted earnings of $7.14 per share, significantly improving from $1.22 per share in the year-ago quarter. The bottom line beat the Zacks Consensus Estimate of $7 per share.
Total quarterly revenues increased from $29,520 million in the prior-year quarter to $44,454 million. The top line also surpassed the Zacks Consensus Estimate of $39,015 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 $3,816 million, improving from $911 million in the year-ago quarter. Higher refinery throughput volumes aided the segment.
In the Ethanol segment, Valero reported an adjusted operating profit of $1 million, down from $4 million in the year-ago quarter. Lower ethanol production volumes hurt the segment. Production declined to 3,498 thousand gallons per day from 3,625 thousand gallons a year ago.
Operating income in the Renewable Diesel segment increased to $212 million from $109 million in the year-ago quarter. Renewable diesel sales volumes increased to 2,231 thousand gallons per day from 671 thousand gallons a year ago.
Throughput Volumes
For the quarter, Valero’s refining throughput volumes were 3,005 thousand barrels per day (MBbls/d), up from 2,864 MBbls/d reported in the third quarter of 2021.
In terms of feedstock composition, sweet crude, medium/light sour crude and heavy sour crude accounted for 49.2%, 16.5% and 10.8%, respectively, of the total volume. The remaining volume came from residuals, other feedstock, and blendstocks and others.
The Gulf Coast contributed 60.3% to the total throughput volume. Mid-Continent, North Atlantic, and West Coast regions accounted for 14.7%, 15.9% and 9.1%, respectively, of the total throughput volume.
Throughput Margins
The refining margin per barrel of throughput significantly increased to $21.34 from the year-ago level of $10.07. Refining operating expenses per barrel of throughput was $5.48 compared with $4.53 in the year-ago quarter.
Depreciation and amortization expenses declined to $2.06 a barrel from $2.08 in the prior-year quarter. As such, Valero’s adjusted refining operating income was $13.80 per barrel of throughput compared with $3.46 in the prior-year quarter.
Cost of Sales
Valero’s total cost of sales surged to $40,431 million in the third quarter from the year-ago figure of $28,602 million primarily due to higher material costs and operating expenses.
Capital Investment & Balance Sheet
The third-quarter capital investment was $602 million. Of the total, $185 million was allotted for sustaining the business.
At the third-quarter end, the company had cash and cash equivalents of $3,969 million. As of Sept 30, 2022, it had total debt and finance lease obligations of $11,576 million.
Zacks Rank & Other Stocks to Consider
Valero currently carries a Zacks Rank #2 (Buy).
Investors interested in the energy sector might look at the following companies that presently flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Equinor ASA (EQNR - Free Report) is one of the premier integrated energy companies in the world. For 2022, EQNR announced the increase of the share buyback program of up to $6 billion from the prior stated $5 billion.
Equinor is scheduled to report third-quarter results on Oct 28. The Zacks Consensus Estimate for EQNR’s earnings is pegged at $1.78 per share, suggesting a significant increase from the prior-year reported figure.
Cactus Inc. (WHD - Free Report) is involved in manufacturing, designing and selling wellhead and pressure-control equipment. At the second-quarter end, Cactus had cash and cash equivalents of $311.7 million, which can provide it with immense financial flexibility. WHD has a strong balance sheet. Per the company, it had no bank debt outstanding as of Jun 30, 2022.
Cactus is scheduled to report third-quarter results on Nov 7. The Zacks Consensus Estimate for WHD’s earnings is pegged at 49 cents per share, suggesting a significant increase from the prior-year reported figure.
The Williams Companies, Inc. (WMB - Free Report) is a premier energy infrastructure provider in North America. WMB’s board recently approved a share repurchase program worth $1.5 billion, highlighting its commitment to shareholders.
Williams is scheduled to report third-quarter results on Oct 31. The Zacks Consensus Estimate for WMB’s earnings is pegged at 43 cents per share, suggesting a significant increase from the prior-year reported figure.