U.S. Markets open in 4 hrs 16 mins
  • S&P Futures

    3,773.25
    -30.00 (-0.79%)
     
  • Dow Futures

    30,118.00
    -247.00 (-0.81%)
     
  • Nasdaq Futures

    11,547.25
    -93.50 (-0.80%)
     
  • Russell 2000 Futures

    1,761.80
    -19.70 (-1.11%)
     
  • Crude Oil

    86.06
    -0.46 (-0.53%)
     
  • Gold

    1,723.10
    -7.40 (-0.43%)
     
  • Silver

    20.75
    -0.35 (-1.68%)
     
  • EUR/USD

    0.9948
    -0.0038 (-0.3780%)
     
  • 10-Yr Bond

    3.6170
    0.0000 (0.00%)
     
  • Vix

    29.40
    -0.70 (-2.33%)
     
  • GBP/USD

    1.1416
    -0.0058 (-0.5069%)
     
  • USD/JPY

    144.3310
    +0.1320 (+0.0915%)
     
  • BTC-USD

    20,156.38
    +263.56 (+1.32%)
     
  • CMC Crypto 200

    456.42
    +10.99 (+2.47%)
     
  • FTSE 100

    7,006.59
    -79.87 (-1.13%)
     
  • Nikkei 225

    27,120.53
    +128.32 (+0.48%)
     

Valero (VLO) Q2 Earnings Beat on Higher Throughput Volumes

·4 min read

Valero Energy Corporation VLO has reported second-quarter 2022 adjusted earnings of $11.36 per share, improving from 48 cents per share in the year-ago quarter. The bottom line comfortably beat the Zacks Consensus Estimate of $9.7 per share.

Total quarterly revenues increased from $27,748 million in the prior-year quarter to $51,641 million. The top line also surpassed the Zacks Consensus Estimate of $40,635 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 and EPS Surprise
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 $6,122 million, improving from $442 million reported in the year-ago quarter. Higher refinery throughput volumes aided the segment.

In the Ethanol segment, Valero reported an adjusted operating profit of $79 million, down from $99 million in the year-ago quarter. Lower ethanol production volumes hurt the segment. Production declined to 3,861 thousand gallons per day from 4,203 thousand gallons a year ago.

Operating income in the Renewable Diesel segment declined to $152 million from $248 million in the year-ago quarter. Yet, renewable diesel sales volumes increased to 2,182 thousand gallons per day from 923 thousand gallons a year ago.

Throughput Volumes

For the quarter, Valero’s refining throughput volumes were 2,962 thousand barrels per day (MBbls/d), up from 2,835 MBbls/d in second-quarter 2021.

In terms of feedstock composition, sweet crude, medium/light sour crude, and heavy sour crude accounted for 47.7%, 14.9%, and 12.7%, respectively, of the total volume. The remaining volume came from residuals, other feedstock, and blendstocks and others.

The Gulf Coast contributed 59% to the total throughput volume. Mid-Continent, North Atlantic, and West Coast regions accounted for 15.2%, 16.3% and 9.5%, respectively, of the total throughput volume.

Throughput Margins

The refining margin per barrel of throughput significantly increased to $30.01 from the year-ago level of $7.95. Refining operating expenses per barrel of throughput was $5.20 compared with $4.13 in the year-ago quarter.

Depreciation and amortization expenses declined to $2.10 a barrel from $2.11 in the prior-year quarter. As such, Valero’s adjusted refining operating income was $22.71 per barrel of throughput compared with $1.71 in the prior-year quarter.

Cost of Sales

Valero’s total cost of sales surged to $45,162 million in the second quarter from the year-ago figure of $27,039 million primarily due to the higher cost of materials.

Capital Investment & Balance Sheet

The second-quarter capital investment was $653 million. Of the total, $298 million was allotted for sustaining the business.

At the second-quarter end, the Zacks Rank #2 (Buy) company had cash and cash equivalents of $5,392 million. As of Jun 30, 2022, it had total debt and finance lease obligations of $12,880 million. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

A Glimpse of Other Players’ Q2 Earnings

Hess Corporation HES reported second-quarter 2022 earnings per share of $2.15, beating the Zacks Consensus Estimate of $2.07. The strong quarterly results were driven by higher realizations of commodity prices.

Hess has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days. The company currently has a Zacks Style Score of B for Growth and Momentum. Hess is expected to see earnings growth of 329.2% in 2022.

Kinder Morgan Inc. KMI reported second-quarter 2022 adjusted earnings per share of 27 cents, in line with the Zacks Consensus Estimate. Contributions from natural gas pipelines and Products Pipelines primarily aided KMI’s second-quarter results.

Kinder Morgan has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days. The company currently has a Zacks Style Score of B for Growth and A for Momentum. For 2022, KMI forecasts DCF generation of $4.7 billion and adjusted EBITDA of $7.2 billion.

Schlumberger Limited SLB reported second-quarter 2022 earnings of 50 cents per share (excluding charges and credits), beating the Zacks Consensus Estimate of 40 cents. The strong quarterly results were primarily driven by higher sales of exploration data licensing, and robust drilling activities in land, and offshore resources in North America and the international market.

Schlumberger has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days. The company currently has a Zacks Style Score of A for Momentum, and B for Value and Growth. Schlumbergeris expected to see earnings growth of 56.3% in 2022.


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
 
Schlumberger Limited (SLB) : Free Stock Analysis Report
 
Hess Corporation (HES) : Free Stock Analysis Report
 
Valero Energy Corporation (VLO) : Free Stock Analysis Report
 
Kinder Morgan, Inc. (KMI) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.