Valero Energy Corporation ( VLO Quick Quote VLO - Free Report) reported second-quarter 2020 loss of $1.25 per share, narrower than the Zacks Consensus Estimate of a loss of $1.42. In the year-ago quarter, the company reported earnings of $1.51 per share.
Total revenues fell from $28,933 million in the prior-year period to $10,397 million. Moreover, the top line missed the Zacks Consensus Estimate of $15,806 million.
The narrower-than-expected loss can be attributed to a rise in renewable diesel sales volumes and speedy recovery in refined product demand. This was partially offset by lower ethanol prices.
Ethanol segment, the company reported operating profit of $91 million, reflecting a jump from $7 million in the second quarter of 2019. The upside was led by a significant decline in total cost of sales, offset partially by lower ethanol prices and throughput.
Operating income at the
Renewable Diesel segment increased to $129 million from $77 million in the year-ago period on a rise in renewable diesel sales volumes. Throughput Volumes
During the quarter, refining throughput volumes were 2,321 thousand barrels per day (Mbpd), down from the prior-year quarter’s 2,968 Mbpd.
In terms of feedstock composition, sweet crude, medium/light sour crude and heavy sour crude accounted for 43.9%, 16.6% and 16.3%, respectively, of its total volume. The remaining volumes came from residuals, other feedstock and; blendstocks and others.
The Gulf Coast contributed approximately 59.7% to total throughput volume. Mid-Continent, North Atlantic and West Coast regions accounted for 15.7%, 14.6% and 10%, respectively, of the total throughput volume.
Refining margin per barrel of throughput decreased to $5.10 from the year-ago level of $9.58. Refining operating expense per barrel was $4.39 compared with $3.8 in the year-ago quarter. Depreciation and amortization expenses increased to $2.53 a barrel from $1.92 in the prior-year quarter. As such, adjusted refining operating loss was recorded at $1.82 per barrel of throughput against the year-ago profit of $3.86.
Capital Investment & Balance Sheet
Second-quarter capital investment totaled $503 million. Of the total amount, $240 million was allotted for sustaining the business. Notably, through the June quarter, the leading independent refiner and marketer of petroleum products has returned $400 million to stockholders as dividend payments.
At the end of the quarter, the company had cash and cash equivalents of $2,319 million. As of Jun 30, 2020, it had a total debt of $12,677 million. Its debt-to-capitalization was 39%.
Zacks Rank & Stocks to Consider
The company currently has a Zacks Rank #3 (Hold). Meanwhile, a few better-ranked players in the energy space include NGL Energy Partners LP (
NGL Quick Quote NGL - Free Report) , Cimarex Energy Co ( XEC Quick Quote XEC - Free Report) and EOG Resources, Inc. ( EOG Quick Quote EOG - Free Report) , each holding a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here .
NGL Energy Partners’ bottom line for second-quarter 2020 is expected to rise 92.7% year over year.
Cimarex Energy’ 2020 bottom-line estimates have moved up over the past 30 days.
EOG Resources’ 2020 bottom-line estimates have risen over the past 30 days.
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