Valero Energy Reports 7% Drop in Third-Quarter Earnings

Valero Energy, the San Antonio-based oil refiner, announced a 7% decrease in third-quarter earnings. The decline in earnings was primarily attributed to a decrease in refining margins from their 2022 highs.

Financial Performance

For the quarter ended in September, Valero Energy reported net income of $2.6 billion, or $7.49 per share. This is a decrease from $2.8 billion, or $7.19 per share, compared to the same period last year. It is important to note that the count of shares outstanding was higher at the end of the prior-year period. On an adjusted basis, Valero reported earnings of $7.49 per share, slightly surpassing the average analyst estimate of $7.47 per share.

Third-quarter sales dropped by 14% to $38.4 billion, falling just below the average analyst estimate of $38.46 billion, as reported by FactSet.

Refining Unit Performance

Valero’s refining unit experienced a decline in operating income by 11% to $3.4 billion. The refining margin, a key measure of the difference between the costs of acquiring feedstock and the price realized on refined products sold, decreased by 8.2% to $5.4 billion.

Impact of Gasoline Prices

Gasoline prices have seen a reduction this year compared to the peak prices experienced in 2022 across most markets.

Capital Investments

During the three-month period, Valero made capital investments totaling $394 million.

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