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Will Valero Energy's (VLO) Refining Business Aid Q2 Earnings?
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Valero Energy Corporation (VLO - Free Report) is set to release second-quarter 2022 results on Jul 28, before the opening bell. Since the energy major has significant exposure to the refining business, a considerable improvement in margin per barrel of throughput is likely to have aided the quarterly performance.
Refining Business
Valero Energy has a combined throughput capacity of 3.2 million barrels per day with its 15 petroleum refineries spread across the United States, Canada, and the U.K. From the refining business, VLO generated an operating income of $1,451 million in the March quarter of this year.
Refining Q1 Performance
U.S. Gulf Coast Region: In first-quarter 2022, Valero Energy reported an operating income of $996 million from refining activities in the U.S. Gulf Coast region. This marked a turnaround from the year-earlier loss of $508 million.
U.S. Mid-Continent Region: From U.S. Mid-Continent region, VLO reported a refining operating income of $142 million against the year-ago quarter’s loss of $10 million.
U.S. West Coast Region: From U.S. West Coast region, VLO reported a refining operating income of $27 million, turning around from the year-ago quarter’s loss of $129 million.
Q2 Business Favorable
Rising export of oil and petroleum products from the United States, since Russian invasion of Ukraine has convinced many nations to replace Russian supplies, are likely to have aided refiners like Valero Energy in the June quarter.
The Zacks Consensus Estimate for VLO’s refining margin per barrel of throughput is pegged at $22.24, suggesting an improvement from $7.64 in the prior-year quarter.
Earnings & Revenue Projections
The solid refining business is likely to have aided VLO’s earnings in the June quarter of 2022. The Zacks Consensus Estimate for its second-quarter earnings of $8.78 per share suggests a massive improvement year over year. The same for sales of $39.7 billion indicates a 43% year-over-year increase.
Other big energy players with significant refining exposure that are gearing up to release quarterly results are PBF Energy (PBF - Free Report) , Exxon Mobil Corporation (XOM - Free Report) and Phillips 66 (PSX - Free Report) .
PBF Energy is scheduled to release second-quarter results on Jul 28. The Zacks Consensus Estimate for PBF’s earnings is pegged at $6.57 per share, suggesting a massive year-over-year improvement.
ExxonMobil has an Earnings ESP of +5.89% and a Zacks Rank of 2 (Buy).
ExxonMobil is scheduled to report second-quarter results on Jul 29. The Zacks Consensus Estimate for XOM’s earnings is pegged at $3.53 per share, suggesting a significant year-over-year improvement.
Phillips 66 has an Earnings ESP of +8.38% and a Zacks Rank of 1.
Phillips 66 is scheduled to report second-quarter results on Jul 29. The Zacks Consensus Estimate for PSX’s earnings is pegged at $5.49 per share, suggesting a significant year-over-year improvement.
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Will Valero Energy's (VLO) Refining Business Aid Q2 Earnings?
Valero Energy Corporation (VLO - Free Report) is set to release second-quarter 2022 results on Jul 28, before the opening bell. Since the energy major has significant exposure to the refining business, a considerable improvement in margin per barrel of throughput is likely to have aided the quarterly performance.
Refining Business
Valero Energy has a combined throughput capacity of 3.2 million barrels per day with its 15 petroleum refineries spread across the United States, Canada, and the U.K. From the refining business, VLO generated an operating income of $1,451 million in the March quarter of this year.
Refining Q1 Performance
U.S. Gulf Coast Region: In first-quarter 2022, Valero Energy reported an operating income of $996 million from refining activities in the U.S. Gulf Coast region. This marked a turnaround from the year-earlier loss of $508 million.
U.S. Mid-Continent Region: From U.S. Mid-Continent region, VLO reported a refining operating income of $142 million against the year-ago quarter’s loss of $10 million.
U.S. West Coast Region: From U.S. West Coast region, VLO reported a refining operating income of $27 million, turning around from the year-ago quarter’s loss of $129 million.
Q2 Business Favorable
Rising export of oil and petroleum products from the United States, since Russian invasion of Ukraine has convinced many nations to replace Russian supplies, are likely to have aided refiners like Valero Energy in the June quarter.
The Zacks Consensus Estimate for VLO’s refining margin per barrel of throughput is pegged at $22.24, suggesting an improvement from $7.64 in the prior-year quarter.
Earnings & Revenue Projections
The solid refining business is likely to have aided VLO’s earnings in the June quarter of 2022. The Zacks Consensus Estimate for its second-quarter earnings of $8.78 per share suggests a massive improvement year over year. The same for sales of $39.7 billion indicates a 43% year-over-year increase.
Valero Energy Corporation Price and EPS Surprise
Valero Energy Corporation price-eps-surprise | Valero Energy Corporation Quote
Upcoming Releases of Other Energy Players
Other big energy players with significant refining exposure that are gearing up to release quarterly results are PBF Energy (PBF - Free Report) , Exxon Mobil Corporation (XOM - Free Report) and Phillips 66 (PSX - Free Report) .
PBF Energy has an Earnings ESP of +20.67% and is a Zacks #1 (Strong Buy) Ranked player. You can see the complete list of today’s Zacks #1 Rank stocks here.
PBF Energy is scheduled to release second-quarter results on Jul 28. The Zacks Consensus Estimate for PBF’s earnings is pegged at $6.57 per share, suggesting a massive year-over-year improvement.
ExxonMobil has an Earnings ESP of +5.89% and a Zacks Rank of 2 (Buy).
ExxonMobil is scheduled to report second-quarter results on Jul 29. The Zacks Consensus Estimate for XOM’s earnings is pegged at $3.53 per share, suggesting a significant year-over-year improvement.
Phillips 66 has an Earnings ESP of +8.38% and a Zacks Rank of 1.
Phillips 66 is scheduled to report second-quarter results on Jul 29. The Zacks Consensus Estimate for PSX’s earnings is pegged at $5.49 per share, suggesting a significant year-over-year improvement.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.