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Valero Energy (VLO) Q2 Earnings, Revenues Top; Down Y/Y
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Valero Energy Corporation (VLO - Free Report) posted adjusted second-quarter 2016 earnings of $1.07 per share that surpassed the Zacks Consensus Estimate of $1.01. The bottom line, however, decreased substantially from the year-ago adjusted income of $2.66 per share. The decline was due to lower refining throughput margins in each of the company’s regions.
Total quarterly revenue of $19,584 million handily beat the Zacks Consensus Estimate of $14,427 million but plunged 22% year over year.
Throughput Volumes
During the quarter, refining throughput volumes were 2.8 million barrels per day (bbls/d). The reported figure was 19,000 bbls/d higher than the year-earlier level.
By feedstock composition, sweet crude, medium/light sour crude and heavy sour crude accounted for 42%, 18% and 13%, respectively. The remaining volumes came from residuals, other feedstock as well as blendstocks and others.
The Gulf Coast accounted for about 57% of the total volume, while the Mid-Continent, North Atlantic and West Coast regions accounted for 16%, 17% and 10%, respectively.
Throughput Margins
Company-wide throughput margins decreased to $8.93 per barrel from the year-ago level of $13.71. The decline stemmed from weak gasoline and other product margins.
Average throughput margin realized in the U.S. Gulf Coast was $8.97 per barrel as against $12.62 in the year-earlier period, in the U.S. Mid-Continent was $8.25 per barrel compared with $15.27 last year, in the North Atlantic was $7.39 per barrel as against $13.02 in the prior-year period and in the U.S. West Coast was $12.67 per barrel compared with $18.63 in the previous year.
Total operating cost per barrel was $5.22 during the quarter, down 0.6% from the prior-year figure of $5.25. Refining operating expenses per barrel were $3.51 as against $3.66 in the year-ago quarter. However, unit depreciation and amortization expenses increased year over year to $1.71 per barrel from $1.59.
Capital Expenditure & Balance Sheet
Second-quarter capital expenditure totaled $461 million, which included $164 million for turnarounds and catalyst expenditures.
At the end of the quarter under review, the company had cash and temporary cash equivalents of $4.9 billion. Valero also returned $282 million to shareholders through dividends and repurchased 7.5 million shares worth $401 million.
Valero expects its total capital spending projection for 2016 at around $2.6 billion. About $1.6 billion of the abovementioned capital spending is apportioned for stay-in-business capital and the other $1.15 billion will be used for growth investments.
Zacks Rank
Valero Energy currently carries a Zacks Rank #5 (Strong Sell). Other favorably placed players from the energy sector are Sasol Ltd (SSL - Free Report) , Dril-Quip, Inc. (DRQ - Free Report) and Murphy USA Inc (MUSA - Free Report) . Each of these stocks sports a Zacks Rank #1 (Strong Buy).
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Valero Energy (VLO) Q2 Earnings, Revenues Top; Down Y/Y
Valero Energy Corporation (VLO - Free Report) posted adjusted second-quarter 2016 earnings of $1.07 per share that surpassed the Zacks Consensus Estimate of $1.01. The bottom line, however, decreased substantially from the year-ago adjusted income of $2.66 per share. The decline was due to lower refining throughput margins in each of the company’s regions.
Total quarterly revenue of $19,584 million handily beat the Zacks Consensus Estimate of $14,427 million but plunged 22% year over year.
Throughput Volumes
During the quarter, refining throughput volumes were 2.8 million barrels per day (bbls/d). The reported figure was 19,000 bbls/d higher than the year-earlier level.
By feedstock composition, sweet crude, medium/light sour crude and heavy sour crude accounted for 42%, 18% and 13%, respectively. The remaining volumes came from residuals, other feedstock as well as blendstocks and others.
The Gulf Coast accounted for about 57% of the total volume, while the Mid-Continent, North Atlantic and West Coast regions accounted for 16%, 17% and 10%, respectively.
Throughput Margins
Company-wide throughput margins decreased to $8.93 per barrel from the year-ago level of $13.71. The decline stemmed from weak gasoline and other product margins.
VALERO ENERGY Price, Consensus and EPS Surprise
VALERO ENERGY Price, Consensus and EPS Surprise | VALERO ENERGY Quote
Average throughput margin realized in the U.S. Gulf Coast was $8.97 per barrel as against $12.62 in the year-earlier period, in the U.S. Mid-Continent was $8.25 per barrel compared with $15.27 last year, in the North Atlantic was $7.39 per barrel as against $13.02 in the prior-year period and in the U.S. West Coast was $12.67 per barrel compared with $18.63 in the previous year.
Total operating cost per barrel was $5.22 during the quarter, down 0.6% from the prior-year figure of $5.25. Refining operating expenses per barrel were $3.51 as against $3.66 in the year-ago quarter. However, unit depreciation and amortization expenses increased year over year to $1.71 per barrel from $1.59.
Capital Expenditure & Balance Sheet
Second-quarter capital expenditure totaled $461 million, which included $164 million for turnarounds and catalyst expenditures.
At the end of the quarter under review, the company had cash and temporary cash equivalents of $4.9 billion. Valero also returned $282 million to shareholders through dividends and repurchased 7.5 million shares worth $401 million.
Valero expects its total capital spending projection for 2016 at around $2.6 billion. About $1.6 billion of the abovementioned capital spending is apportioned for stay-in-business capital and the other $1.15 billion will be used for growth investments.
Zacks Rank
Valero Energy currently carries a Zacks Rank #5 (Strong Sell). Other favorably placed players from the energy sector are Sasol Ltd (SSL - Free Report) , Dril-Quip, Inc. (DRQ - Free Report) and Murphy USA Inc (MUSA - Free Report) . Each of these stocks sports a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>