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Valero Energy (VLO) Q2 Earnings and Revenues Beat Estimates
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Oil refining and marketing player, Valero Energy Corporation (VLO - Free Report) , posted adjusted second-quarter 2017 income of $1.23 per share that surpassed the Zacks Consensus Estimate of $1.08 and the year-ago adjusted profit of $1.08.
Total revenue for the quarter grew 13.6% year over year to $22,254 million from $19,584 million. The top line was also above the Zacks Consensus Estimate of $21,530 million.
Higher throughput margin due to 96% throughput capacity utilization supported Valero Energy’s strong second-quarter results.
Valero Energy Corporation Price, Consensus and EPS Surprise
During the quarter, refining throughput volumes were approximately 3.02 million barrels per day, up from 2.83 million barrels per day in the year-earlier level.
By feedstock composition, sweet crude, medium/light sour crude and heavy sour crude accounted for 43.3%, 16.8% and 17.1%, respectively. The remaining volumes came from residuals, other feedstock, blendstocks and others.
The Gulf Coast accounted for approximately 59% of the total throughput volume. The Mid-Continent, North Atlantic and West Coast regions contributed 16%, 16% and 9%, respectively.
Throughput Margins
Company-wide throughput margins increased to $8.66 per barrel from the year-ago level of $8.59 per barrel. Throughput capacity utilization of 96% during this quarter supported the outperformance.
Average throughput margin realized was $8.20 per barrel in the U.S. Gulf Coast as against $8.55 per barrel in the year-earlier period. The metric was $8.91 per barrel in the U.S. Mid-Continent as against $7.59 a year ago. Throughput margin realized was $9.39 per barrel in the North Atlantic compared with $7.39 last year and $9.93 per barrel in the U.S. West Coast compared with $12.67 in the prior-year quarter.
Total operating cost per barrel was $5.17 during the quarter, up 1.8% from the year-earlier figure of $5.08. Refining operating expense per barrel was $3.51 compared with $3.41 in the year-ago quarter. Depreciation and amortization expenses decreased marginally year over year to $1.66 per barrel from $1.67.
Capital Expenditure & Balance Sheet
Second-quarter capital expenditure was $461 million, including $63 million for turnarounds and catalyst expenditures. At the end of the quarter, the company had cash and temporary cash investments of $5.2 billion and debt of $8.5 billion. Valero Energy also rewarded shareholders with dividends and share buybacks worth $658 million.
Q2 Price Performance
During Apr–Jun 2017, Valero Energy’s shares have underperformed the industry. During the aforesaid period, the stock has gained 1.7% compared with 4.7% increase for the broader industry.
Guidance
For 2017, Valero Energy reaffirmed its capital expenditure at $2.7 billion.
Zacks Rank & Key Picks
Currently, Valero carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the same space include Enbridge Energy, LP , Braskem S.A. (BAK - Free Report) and TransCanada Corp (TRP - Free Report) . While Braskem and TransCanada sport a Zacks Rank #1 (Strong Buy), Enbridge Energy carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Enbridge Energy delivered a positive earnings surprise of 128.57% in the preceding quarter. The company beat estimates in three of the trailing four quarters with an average positive earnings surprise of 38.22%.
Braskem delivered a positive earnings surprise of 107.79% in the quarter ending September 2016.
TransCanada delivered a negative earnings surprise of 7.58% in the preceding quarter. It surpassed estimates in two of the trailing four quarters with an average positive earnings surprise of 1.06%.
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Valero Energy (VLO) Q2 Earnings and Revenues Beat Estimates
Oil refining and marketing player, Valero Energy Corporation (VLO - Free Report) , posted adjusted second-quarter 2017 income of $1.23 per share that surpassed the Zacks Consensus Estimate of $1.08 and the year-ago adjusted profit of $1.08.
Total revenue for the quarter grew 13.6% year over year to $22,254 million from $19,584 million. The top line was also above the Zacks Consensus Estimate of $21,530 million.
Higher throughput margin due to 96% throughput capacity utilization supported Valero Energy’s strong second-quarter results.
Valero Energy Corporation Price, Consensus and EPS Surprise
Valero Energy Corporation Price, Consensus and EPS Surprise | Valero Energy Corporation Quote
Throughput Volumes
During the quarter, refining throughput volumes were approximately 3.02 million barrels per day, up from 2.83 million barrels per day in the year-earlier level.
By feedstock composition, sweet crude, medium/light sour crude and heavy sour crude accounted for 43.3%, 16.8% and 17.1%, respectively. The remaining volumes came from residuals, other feedstock, blendstocks and others.
The Gulf Coast accounted for approximately 59% of the total throughput volume. The Mid-Continent, North Atlantic and West Coast regions contributed 16%, 16% and 9%, respectively.
Throughput Margins
Company-wide throughput margins increased to $8.66 per barrel from the year-ago level of $8.59 per barrel. Throughput capacity utilization of 96% during this quarter supported the outperformance.
Average throughput margin realized was $8.20 per barrel in the U.S. Gulf Coast as against $8.55 per barrel in the year-earlier period. The metric was $8.91 per barrel in the U.S. Mid-Continent as against $7.59 a year ago. Throughput margin realized was $9.39 per barrel in the North Atlantic compared with $7.39 last year and $9.93 per barrel in the U.S. West Coast compared with $12.67 in the prior-year quarter.
Total operating cost per barrel was $5.17 during the quarter, up 1.8% from the year-earlier figure of $5.08. Refining operating expense per barrel was $3.51 compared with $3.41 in the year-ago quarter. Depreciation and amortization expenses decreased marginally year over year to $1.66 per barrel from $1.67.
Capital Expenditure & Balance Sheet
Second-quarter capital expenditure was $461 million, including $63 million for turnarounds and catalyst expenditures. At the end of the quarter, the company had cash and temporary cash investments of $5.2 billion and debt of $8.5 billion. Valero Energy also rewarded shareholders with dividends and share buybacks worth $658 million.
Q2 Price Performance
During Apr–Jun 2017, Valero Energy’s shares have underperformed the industry. During the aforesaid period, the stock has gained 1.7% compared with 4.7% increase for the broader industry.
Guidance
For 2017, Valero Energy reaffirmed its capital expenditure at $2.7 billion.
Zacks Rank & Key Picks
Currently, Valero carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the same space include Enbridge Energy, LP , Braskem S.A. (BAK - Free Report) and TransCanada Corp (TRP - Free Report) . While Braskem and TransCanada sport a Zacks Rank #1 (Strong Buy), Enbridge Energy carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Enbridge Energy delivered a positive earnings surprise of 128.57% in the preceding quarter. The company beat estimates in three of the trailing four quarters with an average positive earnings surprise of 38.22%.
Braskem delivered a positive earnings surprise of 107.79% in the quarter ending September 2016.
TransCanada delivered a negative earnings surprise of 7.58% in the preceding quarter. It surpassed estimates in two of the trailing four quarters with an average positive earnings surprise of 1.06%.
More Stock News: Tech Opportunity Worth $386 Billion in 2017
From driverless cars to artificial intelligence, we've seen an unsurpassed growth of high-tech products in recent months. Yesterday's science-fiction is becoming today's reality. Despite all the innovation, there is a single component no tech company can survive without. Demand for this critical device will reach $387 billion this year alone, and it's likely to grow even faster in the future.
Zacks has released a brand-new Special Report to help you take advantage of this exciting investment opportunity. Most importantly, it reveals 4 stocks with massive profit potential. See these stocks now>>