- Reported net loss attributable to Valero stockholders of $464 million, or $1.14 per share.
- Reported adjusted net loss attributable to Valero stockholders of $472 million, or $1.16 per share.
- Issued $2.5 billion of Senior Notes for general corporate purposes.
- 2020 and 2021 capital investments attributable to Valero forecasted at $2.0 billion for each year.
- Returned $399 million in cash to stockholders through dividends.
SAN ANTONIO--(BUSINESS WIRE)--Valero Energy Corporation (NYSE: VLO, “Valero”) today reported a net loss attributable to Valero stockholders of $464 million, or $1.14 per share, for the third quarter of 2020 compared to net income of $609 million, or $1.48 per share, for the third quarter of 2019. Excluding the adjustments shown in the accompanying earnings release tables, the adjusted net loss attributable to Valero stockholders was $472 million, or $1.16 per share, for the third quarter of 2020, compared to third quarter 2019 adjusted net income attributable to Valero stockholders of $642 million, or $1.55 per share. Third quarter 2020 adjusted results primarily exclude the benefit from an after-tax lower of cost or market, or LCM, inventory valuation adjustment of $250 million and an after-tax loss of $218 million for an expected LIFO liquidation.
Refining
The refining segment reported a $629 million operating loss for the third quarter of 2020 compared to operating income of $1.1 billion for the third quarter of 2019. Excluding the LCM inventory valuation adjustment, the expected LIFO liquidation adjustment, and other operating expenses, the third quarter 2020 adjusted operating loss was $575 million. Refinery throughput volumes averaged 2.5 million barrels per day in the third quarter of 2020, which was 428 thousand barrels per day lower than the third quarter of 2019.
“As the global economy recovers, we are pleased to see a demand recovery for gasoline, diesel and jet fuel in the third quarter” said Joe Gorder, Valero Chairman and Chief Executive Officer. “Our unmatched execution, while being the lowest cost producer, and ample liquidity continue to position us well to manage a low margin environment.”
Renewable Diesel
The renewable diesel segment reported $184 million of operating income for the third quarter of 2020 compared to $65 million for the third quarter of 2019. After adjusting for the retroactive blender’s tax credit, renewable diesel operating income was $123 million for the third quarter of 2019. Renewable diesel sales volumes averaged 870 thousand gallons per day in the third quarter of 2020, an increase of 232 thousand gallons per day versus the third quarter of 2019. The third quarter of 2019 results and volumes were impacted by the planned downtime of the Diamond Green Diesel (DGD) plant for maintenance. DGD set a record for sales volumes in the third quarter of 2020.
Ethanol
The ethanol segment reported $22 million of operating income for the third quarter of 2020, compared to a $43 million operating loss for the third quarter of 2019. Third quarter 2020 adjusted operating income was $36 million. Ethanol production volumes averaged 3.8 million gallons per day in the third quarter of 2020, which was 206 thousand gallons per day lower than the third quarter of 2019. The increase in operating income was attributed primarily to higher margins resulting from lower corn prices.
Corporate and Other
General and administrative expenses were $186 million in the third quarter of 2020 compared to $217 million in the third quarter of 2019. The effective tax rate for the third quarter of 2020 was 47 percent, which was primarily impacted by an expected U.S. federal tax net operating loss that will be carried back to 2015 when the U.S. federal statutory tax rate was 35 percent.
Investing and Financing Activities
Capital investments totaled $517 million in the third quarter of 2020, of which $205 million was for sustaining the business, including costs for turnarounds, catalysts and regulatory compliance. Excluding capital investments attributable to our partner’s 50 percent share of DGD and those related to other variable interest entities, capital investments attributable to Valero were $393 million.
Net cash provided by operating activities was $165 million in the third quarter of 2020. Included in this amount was a $246 million favorable impact from working capital, as well as our joint venture partner’s share of DGD’s net cash provided by operating activities, excluding changes in its working capital. Excluding these items, adjusted net cash used by operating activities was $177 million.
Valero returned $399 million to stockholders through dividends in the third quarter of 2020, resulting in a year-to-date total payout ratio of 165 percent of adjusted net cash provided by operating activities. The year-to-date total payout ratio is higher than our long-term target due to the adverse economic impact of COVID-19.
Valero continues to target a long-term total payout ratio between 40 and 50 percent of adjusted net cash provided by operating activities. Valero defines total payout ratio as the sum of dividends and stock buybacks divided by net cash provided by operating activities adjusted for changes in working capital and DGD’s net cash provided by operating activities, excluding changes in its working capital, attributable to our joint venture partner’s ownership interest in DGD.
“The guiding principles underpinning our capital allocation strategy remain unchanged,” said Gorder. “There has been absolutely no change in our strategy, which prioritizes our investment grade ratings, sustaining investments and honoring our dividend.”
Liquidity and Financial Position
Valero ended the third quarter of 2020 with $15.2 billion of total debt and finance lease obligations and $4.0 billion of cash and cash equivalents. The debt to capitalization ratio, net of cash and cash equivalents, was 36 percent as of September 30, 2020.
Strategic Update
Capital investments attributable to Valero are forecasted at $2.0 billion per year in 2020 and 2021, of which approximately 60 percent is for sustaining the business and approximately 40 percent is for growth projects. Approximately 40 percent of Valero’s 2020 and 2021 growth capital is allocated to expanding the renewable diesel business.
The new St. Charles Alkylation Unit, which is designed to convert low-value feedstocks into a premium alkylate product, is on track to be completed in the fourth quarter of this year. The Diamond Pipeline expansion and the Pembroke Cogen project are expected to be completed in 2021 and the Port Arthur Coker project is expected to be completed in 2023.
Valero and its joint venture partner in DGD continue to pursue growth in the low-carbon renewable diesel business. The DGD plant expansion is still expected to be completed in 2021, and as previously announced, DGD continues to make progress on the advanced engineering and development cost review for a potential new 400 million gallons per year renewable diesel plant at Valero’s Port Arthur, Texas facility. If the project is approved, operations are expected to commence in 2024, increasing DGD’s production capacity to over 1.1 billion gallons annually.
“We remain steadfast in the execution of our strategy, pursuing excellence in operations, investing in earnings growth with lower volatility and honoring our commitment to shareholder returns,” said Gorder.
Conference Call
Valero’s senior management will hold a conference call at 10 a.m. ET today to discuss this earnings release and to provide an update on operations and strategy.
About Valero
Valero Energy Corporation, through its subsidiaries (collectively, “Valero”), is an international manufacturer and marketer of transportation fuels and petrochemical products. Valero is a Fortune 50 company based in San Antonio, Texas, and it operates 15 petroleum refineries with a combined throughput capacity of approximately 3.2 million barrels per day and 14 ethanol plants with a combined production capacity of approximately 1.73 billion gallons per year. The petroleum refineries are located in the United States (U.S.), Canada and the United Kingdom (U.K.), and the ethanol plants are located in the Mid-Continent region of the U.S. Valero is also a joint venture partner in Diamond Green Diesel, which operates a renewable diesel plant in Norco, Louisiana. Diamond Green Diesel is North America’s largest biomass-based diesel plant. Valero sells its products in the wholesale rack or bulk markets in the U.S., Canada, the U.K., Ireland and Latin America. Approximately 7,000 outlets carry Valero’s brand names. Please visit www.valero.com for more information.
Valero Contacts
Investors:
Homer Bhullar, Vice President – Investor Relations, 210-345-1982
Eric Herbort, Senior Manager – Investor Relations, 210-345-3331
Gautam Srivastava, Manager – Investor Relations, 210-345-3992
Media:
Lillian Riojas, Executive Director – Media Relations and Communications, 210-345-5002
Safe-Harbor Statement
Statements contained in this release that state the company’s or management’s expectations or predictions of the future are forward-looking statements intended to be covered by the safe harbor provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934. The words “believe,” “expect,” “should,” “estimates,” “intend,” “target,” “will,” “plans,” and other similar expressions identify forward-looking statements. It is important to note that actual results could differ materially from those projected in such forward-looking statements based on numerous factors, including those outside of the company’s control, such as delays in construction timing and other factors, including but not limited to the impacts of COVID-19. For more information concerning factors that could cause actual results to differ from those expressed or forecasted, see Valero’s annual reports on Form 10-K, quarterly reports on Form 10-Q, and other reports filed with the Securities and Exchange Commission and available on Valero’s website at www.valero.com.
COVID-19 Disclosure
The global pandemic has significantly reduced global economic activity and resulted in airlines dramatically cutting back on flights and a decrease in motor vehicle use. As a result, there has also been a decline in the demand for, and thus also the market prices of, crude oil and certain of our products, particularly our refined petroleum products. Many uncertainties remain with respect to COVID-19, including its resulting economic effects and any future recovery, and we are unable to predict the ultimate economic impacts from COVID-19, how quickly national economies can recover once the pandemic subsides, or whether any recovery will ultimately experience a reversal or other setbacks. However, the adverse impact of the economic effects on us has been and will likely continue to be significant. We believe we have proactively addressed many of the known impacts of COVID-19 to the extent possible and will strive to continue to do so, but there can be no guarantee that these measures will be fully effective. For more information, see our quarterly reports on Form 10-Q and other reports filed with the Securities and Exchange Commission.
Use of Non-GAAP Financial Information
This earnings release and the accompanying earnings release tables include references to financial measures that are not defined under U.S. generally accepted accounting principles (GAAP). These non-GAAP measures include adjusted net income (loss) attributable to Valero stockholders, adjusted earnings (loss) per common share – assuming dilution, refining margin, renewable diesel margin, ethanol margin, adjusted refining operating income (loss), adjusted renewable diesel operating income, adjusted ethanol operating income (loss), adjusted net cash provided by operating activities, and capital investments attributable to Valero. These non-GAAP financial measures have been included to help facilitate the comparison of operating results between periods. See the accompanying earnings release tables for a reconciliation of non-GAAP measures to their most directly comparable U.S. GAAP measures. Note (g) to the earnings release tables provides reasons for the use of these non-GAAP financial measures.
VALERO ENERGY CORPORATION EARNINGS RELEASE TABLES FINANCIAL HIGHLIGHTS (millions of dollars, except per share amounts) (unaudited) |
|||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
2020 |
|
2019 |
|
2020 |
|
2019 |
||||||||
Statement of income data |
|
|
|
|
|
|
|
||||||||
Revenues |
$ |
15,809 |
|
|
$ |
27,249 |
|
|
$ |
48,308 |
|
|
$ |
80,445 |
|
Cost of sales: |
|
|
|
|
|
|
|
||||||||
Cost of materials and other (a) (b) |
14,801 |
|
|
24,335 |
|
|
43,832 |
|
|
72,396 |
|
||||
Lower of cost or market (LCM) inventory valuation adjustment (c) |
(313) |
|
|
— |
|
|
(19) |
|
|
— |
|
||||
Operating expenses (excluding depreciation and amortization expense reflected below) |
1,117 |
|
|
1,239 |
|
|
3,268 |
|
|
3,629 |
|
||||
Depreciation and amortization expense (d) |
602 |
|
|
556 |
|
|
1,737 |
|
|
1,645 |
|
||||
Total cost of sales |
16,207 |
|
|
26,130 |
|
|
48,818 |
|
|
77,670 |
|
||||
Other operating expenses |
25 |
|
|
10 |
|
|
30 |
|
|
14 |
|
||||
General and administrative expenses (excluding depreciation and amortization expense reflected below) |
186 |
|
|
217 |
|
|
532 |
|
|
625 |
|
||||
Depreciation and amortization expense |
12 |
|
|
11 |
|
|
37 |
|
|
39 |
|
||||
Operating income (loss) |
(621) |
|
|
881 |
|
|
(1,109) |
|
|
2,097 |
|
||||
Other income, net (e) |
48 |
|
|
34 |
|
|
107 |
|
|
68 |
|
||||
Interest and debt expense, net of capitalized interest |
(143) |
|
|
(111) |
|
|
(410) |
|
|
(335) |
|
||||
Income (loss) before income tax expense (benefit) |
(716) |
|
|
804 |
|
|
(1,412) |
|
|
1,830 |
|
||||
Income tax expense (benefit) |
(337) |
|
|
165 |
|
|
(614) |
|
|
376 |
|
||||
Net income (loss) |
(379) |
|
|
639 |
|
|
(798) |
|
|
1,454 |
|
||||
Less: Net income attributable to noncontrolling interests (b) |
85 |
|
|
30 |
|
|
264 |
|
|
92 |
|
||||
Net income (loss) attributable to Valero Energy Corporation stockholders |
$ |
(464) |
|
|
$ |
609 |
|
|
$ |
(1,062) |
|
|
$ |
1,362 |
|
|
|
|
|
|
|
|
|
||||||||
Earnings (loss) per common share |
$ |
(1.14) |
|
|
$ |
1.48 |
|
|
$ |
(2.62) |
|
|
$ |
3.28 |
|
Weighted-average common shares outstanding (in millions) |
407 |
|
|
412 |
|
|
407 |
|
|
415 |
|
||||
|
|
|
|
|
|
|
|
||||||||
Earnings (loss) per common share – assuming dilution |
$ |
(1.14) |
|
|
$ |
1.48 |
|
|
$ |
(2.62) |
|
|
$ |
3.28 |
|
Weighted-average common shares outstanding – assuming dilution (in millions) (f) |
407 |
|
|
413 |
|
|
407 |
|
|
416 |
|
||||
See Notes to Earnings Release Tables. |
VALERO ENERGY CORPORATION EARNINGS RELEASE TABLES FINANCIAL HIGHLIGHTS BY SEGMENT (millions of dollars) (unaudited) |
|||||||||||||||||||
|
Refining |
|
Renewable |
|
Ethanol |
|
Corporate |
|
Total |
||||||||||
Three months ended September 30, 2020 |
|
|
|
|
|
|
|
|
|
||||||||||
Revenues: |
|
|
|
|
|
|
|
|
|
||||||||||
Revenues from external customers |
$ |
14,727 |
|
|
$ |
305 |
|
|
$ |
777 |
|
|
$ |
— |
|
|
$ |
15,809 |
|
Intersegment revenues |
2 |
|
|
40 |
|
|
58 |
|
|
(100) |
|
|
— |
|
|||||
Total revenues |
14,729 |
|
|
345 |
|
|
835 |
|
|
(100) |
|
|
15,809 |
|
|||||
Cost of sales: |
|
|
|
|
|
|
|
|
|
||||||||||
Cost of materials and other (a) (b) |
14,103 |
|
|
128 |
|
|
670 |
|
|
(100) |
|
|
14,801 |
|
|||||
LCM inventory valuation adjustment (c) |
(296) |
|
|
— |
|
|
(17) |
|
|
— |
|
|
(313) |
|
|||||
Operating expenses (excluding depreciation and amortization expense reflected below) |
989 |
|
|
23 |
|
|
105 |
|
|
— |
|
|
1,117 |
|
|||||
Depreciation and amortization expense (d) |
538 |
|
|
10 |
|
|
54 |
|
|
— |
|
|
602 |
|
|||||
Total cost of sales |
15,334 |
|
|
161 |
|
|
812 |
|
|
(100) |
|
|
16,207 |
|
|||||
Other operating expenses |
24 |
|
|
— |
|
|
1 |
|
|
— |
|
|
25 |
|
|||||
General and administrative expenses (excluding depreciation and amortization expense reflected below) |
— |
|
|
— |
|
|
— |
|
|
186 |
|
|
186 |
|
|||||
Depreciation and amortization expense |
— |
|
|
— |
|
|
— |
|
|
12 |
|
|
12 |
|
|||||
Operating income (loss) by segment |
$ |
(629) |
|
|
$ |
184 |
|
|
$ |
22 |
|
|
$ |
(198) |
|
|
$ |
(621) |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Three months ended September 30, 2019 |
|
|
|
|
|
|
|
|
|
||||||||||
Revenues: |
|
|
|
|
|
|
|
|
|
||||||||||
Revenues from external customers |
$ |
26,145 |
|
|
$ |
212 |
|
|
$ |
891 |
|
|
$ |
1 |
|
|
$ |
27,249 |
|
Intersegment revenues |
2 |
|
|
50 |
|
|
57 |
|
|
(109) |
|
|
— |
|
|||||
Total revenues |
26,147 |
|
|
262 |
|
|
948 |
|
|
(108) |
|
|
27,249 |
|
|||||
Cost of sales: |
|
|
|
|
|
|
|
|
|
||||||||||
Cost of materials and other |
23,432 |
|
|
164 |
|
|
847 |
|
|
(108) |
|
|
24,335 |
|
|||||
Operating expenses (excluding depreciation and amortization expense reflected below) |
1,100 |
|
|
18 |
|
|
121 |
|
|
— |
|
|
1,239 |
|
|||||
Depreciation and amortization expense |
518 |
|
|
15 |
|
|
23 |
|
|
— |
|
|
556 |
|
|||||
Total cost of sales |
25,050 |
|
|
197 |
|
|
991 |
|
|
(108) |
|
|
26,130 |
|
|||||
Other operating expenses |
10 |
|
|
— |
|
|
— |
|
|
— |
|
|
10 |
|
|||||
General and administrative expenses (excluding depreciation and amortization expense reflected below) |
— |
|
|
— |
|
|
— |
|
|
217 |
|
|
217 |
|
|||||
Depreciation and amortization expense |
— |
|
|
— |
|
|
— |
|
|
11 |
|
|
11 |
|
|||||
Operating income (loss) by segment |
$ |
1,087 |
|
|
$ |
65 |
|
|
$ |
(43) |
|
|
$ |
(228) |
|
|
$ |
881 |
|
See Operating Highlights by Segment. See Notes to Earnings Release Tables. |
VALERO ENERGY CORPORATION EARNINGS RELEASE TABLES FINANCIAL HIGHLIGHTS BY SEGMENT (millions of dollars) (unaudited) |
|||||||||||||||||||
|
Refining |
|
Renewable |
|
Ethanol |
|
Corporate |
|
Total |
||||||||||
Nine months ended September 30, 2020 |
|
|
|
|
|
|
|
|
|
||||||||||
Revenues: |
|
|
|
|
|
|
|
|
|
||||||||||
Revenues from external customers |
$ |
45,327 |
|
|
$ |
850 |
|
|
$ |
2,131 |
|
|
$ |
— |
|
|
$ |
48,308 |
|
Intersegment revenues |
6 |
|
|
150 |
|
|
160 |
|
|
(316) |
|
|
— |
|
|||||
Total revenues |
45,333 |
|
|
1,000 |
|
|
2,291 |
|
|
(316) |
|
|
48,308 |
|
|||||
Cost of sales: |
|
|
|
|
|
|
|
|
|
||||||||||
Cost of materials and other (a) (b) |
41,769 |
|
|
393 |
|
|
1,984 |
|
|
(314) |
|
|
43,832 |
|
|||||
LCM inventory valuation adjustment (c) |
(19) |
|
|
— |
|
|
— |
|
|
— |
|
|
(19) |
|
|||||
Operating expenses (excluding depreciation and amortization expense reflected below) |
2,912 |
|
|
63 |
|
|
293 |
|
|
— |
|
|
3,268 |
|
|||||
Depreciation and amortization expense (d) |
1,607 |
|
|
33 |
|
|
97 |
|
|
— |
|
|
1,737 |
|
|||||
Total cost of sales |
46,269 |
|
|
489 |
|
|
2,374 |
|
|
(314) |
|
|
48,818 |
|
|||||
Other operating expenses |
29 |
|
|
— |
|
|
1 |
|
|
— |
|
|
30 |
|
|||||
General and administrative expenses (excluding depreciation and amortization expense reflected below) |
— |
|
|
— |
|
|
— |
|
|
532 |
|
|
532 |
|
|||||
Depreciation and amortization expense |
— |
|
|
— |
|
|
— |
|
|
37 |
|
|
37 |
|
|||||
Operating income (loss) by segment |
$ |
(965) |
|
|
$ |
511 |
|
|
$ |
(84) |
|
|
$ |
(571) |
|
|
$ |
(1,109) |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Nine months ended September 30, 2019 |
|
|
|
|
|
|
|
|
|
||||||||||
Revenues: |
|
|
|
|
|
|
|
|
|
||||||||||
Revenues from external customers |
$ |
77,109 |
|
|
$ |
686 |
|
|
$ |
2,648 |
|
|
$ |
2 |
|
|
$ |
80,445 |
|
Intersegment revenues |
12 |
|
|
174 |
|
|
162 |
|
|
(348) |
|
|
— |
|
|||||
Total revenues |
77,121 |
|
|
860 |
|
|
2,810 |
|
|
(346) |
|
|
80,445 |
|
|||||
Cost of sales: |
|
|
|
|
|
|
|
|
|
||||||||||
Cost of materials and other |
69,769 |
|
|
577 |
|
|
2,396 |
|
|
(346) |
|
|
72,396 |
|
|||||
Operating expenses (excluding depreciation and amortization expense reflected below) |
3,197 |
|
|
54 |
|
|
378 |
|
|
— |
|
|
3,629 |
|
|||||
Depreciation and amortization expense |
1,539 |
|
|
38 |
|
|
68 |
|
|
— |
|
|
1,645 |
|
|||||
Total cost of sales |
74,505 |
|
|
669 |
|
|
2,842 |
|
|
(346) |
|
|
77,670 |
|
|||||
Other operating expenses |
13 |
|
|
— |
|
|
1 |
|
|
— |
|
|
14 |
|
|||||
General and administrative expenses (excluding depreciation and amortization expense reflected below) |
— |
|
|
— |
|
|
— |
|
|
625 |
|
|
625 |
|
|||||
Depreciation and amortization expense |
— |
|
|
— |
|
|
— |
|
|
39 |
|
|
39 |
|
|||||
Operating income (loss) by segment |
$ |
2,603 |
|
|
$ |
191 |
|
|
$ |
(33) |
|
|
$ |
(664) |
|
|
$ |
2,097 |
|
See Operating Highlights by Segment. See Notes to Earnings Release Tables. |
VALERO ENERGY CORPORATION EARNINGS RELEASE TABLES RECONCILIATION OF NON-GAAP MEASURES TO MOST COMPARABLE AMOUNTS REPORTED UNDER U.S. GAAP (g) (millions of dollars, except per share amounts) (unaudited) |
||||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
|||||||||||||
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
||||||||
Reconciliation of net income (loss) attributable to Valero Energy Corporation stockholders to adjusted net income (loss) attributable to Valero Energy Corporation stockholders |
|
|
|
|
|
|
|
|
||||||||
Net income (loss) attributable to Valero Energy Corporation stockholders |
$ |
(464) |
|
|
$ |
609 |
|
|
$ |
(1,062) |
|
|
$ |
1,362 |
|
|
Adjustments: |
|
|
|
|
|
|
|
|
||||||||
Last-in, first-out (LIFO) liquidation adjustment (a) |
326 |
|
|
— |
|
|
326 |
|
|
— |
|
|
||||
Income tax benefit related to the LIFO liquidation adjustment |
(108) |
|
|
— |
|
|
(108) |
|
|
— |
|
|
||||
LIFO liquidation adjustment, net of taxes |
218 |
|
|
— |
|
|
218 |
|
|
— |
|
|
||||
Change in estimated useful life (d) |
30 |
|
|
— |
|
|
30 |
|
|
— |
|
|
||||
Income tax benefit related to the change in estimated useful life |
(6) |
|
|
— |
|
|
(6) |
|
|
— |
|
|
||||
Change in estimated useful life, net of taxes |
24 |
|
|
— |
|
|
24 |
|
|
— |
|
|
||||
LCM inventory valuation adjustment (c) |
(313) |
|
|
— |
|
|
(19) |
|
|
— |
|
|
||||
Income tax expense related to the LCM inventory valuation adjustment |
63 |
|
|
— |
|
|
3 |
|
|
— |
|
|
||||
LCM inventory valuation adjustment, net of taxes |
(250) |
|
|
— |
|
|
(16) |
|
|
— |
|
|
||||
2019 blender’s tax credit attributable to Valero Energy Corporation stockholders (b) |
— |
|
|
33 |
|
|
— |
|
|
112 |
|
|
||||
Income tax expense related to 2019 blender’s tax credit |
— |
|
|
— |
|
|
— |
|
|
(3) |
|
|
||||
2019 blender’s tax credit attributable to Valero Energy Corporation stockholders, net of taxes |
— |
|
|
33 |
|
|
— |
|
|
109 |
|
|
||||
Loss on early redemption of debt (e) |
— |
|
|
— |
|
|
— |
|
|
22 |
|
|
||||
Income tax benefit related to loss on early redemption of debt |
— |
|
|
— |
|
|
— |
|
|
(5) |
|
|
||||
Loss on early redemption of debt, net of taxes |
— |
|
|
— |
|
|
— |
|
|
17 |
|
|
||||
Total adjustments |
(8) |
|
|
33 |
|
|
226 |
|
|
126 |
|
|
||||
Adjusted net income (loss) attributable to Valero Energy Corporation stockholders |
$ |
(472) |
|
|
$ |
642 |
|
|
$ |
(836) |
|
|
$ |
1,488 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Reconciliation of earnings (loss) per common share – assuming dilution to adjusted earnings (loss) per common share – assuming dilution |
|
|
|
|
|
|
|
|
||||||||
Earnings (loss) per common share – assuming dilution (f) |
$ |
(1.14) |
|
|
$ |
1.48 |
|
|
$ |
(2.62) |
|
|
$ |
3.28 |
|
|
Adjustments: |
|
|
|
|
|
|
|
|
||||||||
LIFO liquidation adjustment (a) |
0.53 |
|
|
— |
|
|
0.53 |
|
|
— |
|
|
||||
Change in estimated useful life (d) |
0.06 |
|
|
— |
|
|
0.06 |
|
|
— |
|
|
||||
LCM inventory valuation adjustment (c) |
(0.61) |
|
|
— |
|
|
(0.04) |
|
|
— |
|
|
||||
2019 blender’s tax credit attributable to Valero Energy Corporation stockholders (b) |
— |
|
|
0.07 |
|
|
— |
|
|
0.26 |
|
|
||||
Loss on early redemption of debt (e) |
— |
|
|
— |
|
|
— |
|
|
0.04 |
|
|
||||
Total adjustments |
(0.02) |
|
|
0.07 |
|
|
0.55 |
|
|
0.30 |
|
|
||||
Adjusted earnings (loss) per common share – assuming dilution (f) |
$ |
(1.16) |
|
|
$ |
1.55 |
|
|
$ |
(2.07) |
|
|
$ |
3.58 |
|
|
See Notes to Earnings Release Tables. |
VALERO ENERGY CORPORATION EARNINGS RELEASE TABLES RECONCILIATION OF NON-GAAP MEASURES TO MOST COMPARABLE AMOUNTS REPORTED UNDER U.S. GAAP (g) (millions of dollars) (unaudited) |
|||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
2020 |
|
2019 |
|
2020 |
|
2019 |
||||||||
Reconciliation of operating income (loss) by segment to segment margin, and reconciliation of operating income (loss) by segment to adjusted operating income (loss) by segment |
|
|
|
|
|
|
|
||||||||
Refining segment |
|
|
|
|
|
|
|
||||||||
Refining operating income (loss) |
$ |
(629) |
|
|
$ |
1,087 |
|
|
$ |
(965) |
|
|
$ |
2,603 |
|
Adjustments: |
|
|
|
|
|
|
|
||||||||
2019 blender’s tax credit (b) |
— |
|
|
4 |
|
|
— |
|
|
13 |
|
||||
LIFO liquidation adjustment (a) |
326 |
|
|
— |
|
|
326 |
|
|
— |
|
||||
LCM inventory valuation adjustment (c) |
(296) |
|
|
— |
|
|
(19) |
|
|
— |
|
||||
Operating expenses (excluding depreciation and amortization expense reflected below) |
989 |
|
|
1,100 |
|
|
2,912 |
|
|
3,197 |
|
||||
Depreciation and amortization expense |
538 |
|
|
518 |
|
|
1,607 |
|
|
1,539 |
|
||||
Other operating expenses |
24 |
|
|
10 |
|
|
29 |
|
|
13 |
|
||||
Refining margin |
$ |
952 |
|
|
$ |
2,719 |
|
|
$ |
3,890 |
|
|
$ |
7,365 |
|
|
|
|
|
|
|
|
|
||||||||
Refining operating income (loss) |
$ |
(629) |
|
|
$ |
1,087 |
|
|
$ |
(965) |
|
|
$ |
2,603 |
|
Adjustments: |
|
|
|
|
|
|
|
||||||||
2019 blender’s tax credit (b) |
— |
|
|
4 |
|
|
— |
|
|
|
13 |
|
|||
LIFO liquidation adjustment (a) |
326 |
|
|
— |
|
|
326 |
|
|
— |
|
||||
LCM inventory valuation adjustment (c) |
(296) |
|
|
— |
|
|
(19) |
|
|
— |
|
||||
Other operating expenses |
24 |
|
|
10 |
|
|
29 |
|
|
13 |
|
||||
Adjusted refining operating income (loss) |
$ |
(575) |
|
|
$ |
1,101 |
|
|
$ |
(629) |
|
|
$ |
2,629 |
|
|
|
|
|
|
|
|
|
||||||||
Renewable diesel segment |
|
|
|
|
|
|
|
||||||||
Renewable diesel operating income |
$ |
184 |
|
|
$ |
65 |
|
|
$ |
511 |
|
|
$ |
191 |
|
Adjustments: |
|
|
|
|
|
|
|
||||||||
2019 blender’s tax credit (b) |
— |
|
|
58 |
|
|
— |
|
|
198 |
|
||||
Operating expenses (excluding depreciation and amortization expense reflected below) |
23 |
|
|
18 |
|
|
63 |
|
|
54 |
|
||||
Depreciation and amortization expense |
10 |
|
|
15 |
|
|
33 |
|
|
38 |
|
||||
Renewable diesel margin |
$ |
217 |
|
|
$ |
156 |
|
|
$ |
607 |
|
|
$ |
481 |
|
|
|
|
|
|
|
|
|
||||||||
Renewable diesel operating income |
$ |
184 |
|
|
$ |
65 |
|
|
$ |
511 |
|
|
$ |
191 |
|
Adjustment: 2019 blender’s tax credit (b) |
— |
|
|
58 |
|
|
— |
|
|
198 |
|
||||
Adjusted renewable diesel operating income |
$ |
184 |
|
|
$ |
123 |
|
|
$ |
511 |
|
|
$ |
389 |
|
|
|
|
|
|
|
|
|
||||||||
See Notes to Earnings Release Tables. |
VALERO ENERGY CORPORATION EARNINGS RELEASE TABLES RECONCILIATION OF NON-GAAP MEASURES TO MOST COMPARABLE AMOUNTS REPORTED UNDER U.S. GAAP (g) (millions of dollars) (unaudited) |
|||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
2020 |
|
2019 |
|
2020 |
|
2019 |
||||||||
Reconciliation of operating income (loss) by segment to segment margin, and reconciliation of operating income (loss) by segment to adjusted operating income (loss) by segment (continued) |
|
|
|
|
|
|
|
||||||||
Ethanol segment |
|
|
|
|
|
|
|
||||||||
Ethanol operating income (loss) |
$ |
22 |
|
|
$ |
(43) |
|
|
$ |
(84) |
|
|
$ |
(33) |
|
Adjustments: |
|
|
|
|
|
|
|
||||||||
LCM inventory valuation adjustment (c) |
(17) |
|
|
— |
|
|
— |
|
|
— |
|
||||
Operating expenses (excluding depreciation and amortization expense reflected below) |
105 |
|
|
121 |
|
|
293 |
|
|
378 |
|
||||
Depreciation and amortization expense (d) |
54 |
|
|
23 |
|
|
97 |
|
|
68 |
|
||||
Other operating expenses |
1 |
|
|
— |
|
|
1 |
|
|
1 |
|
||||
Ethanol margin |
$ |
165 |
|
|
$ |
101 |
|
|
$ |
307 |
|
|
$ |
414 |
|
|
|
|
|
|
|
|
|
||||||||
Ethanol operating income (loss) |
$ |
22 |
|
|
$ |
(43) |
|
|
$ |
(84) |
|
|
$ |
(33) |
|
Adjustments: |
|
|
|
|
|
|
|
||||||||
LCM inventory valuation adjustment (c) |
(17) |
|
|
— |
|
|
— |
|
|
— |
|
||||
Change in estimated useful life (d) |
30 |
|
|
— |
|
|
30 |
|
|
— |
|
||||
Other operating expenses |
1 |
|
|
— |
|
|
1 |
|
|
1 |
|
||||
Adjusted ethanol operating income (loss) |
$ |
36 |
|
|
$ |
(43) |
|
|
$ |
(53) |
|
|
$ |
(32) |
|
See Notes to Earnings Release Tables. |
Contacts
Investors:
Homer Bhullar, Vice President – Investor Relations, 210-345-1982
Eric Herbort, Senior Manager – Investor Relations, 210-345-3331
Gautam Srivastava, Manager – Investor Relations, 210-345-3992
Media:
Lillian Riojas, Executive Director – Media Relations and Communications, 210-345-5002
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