Valero Q1 2024 Earnings Highlights 

1. Financial Performance:
   
   

   • Net Income: Valero reported net income attributable to Valero stockholders of $1.2 billion, or $3.75 per share, for Q1 2024. This compares to $3.1 billion, or $8.29 per share, in Q1 2023.

   • Adjusted Net Income: Excluding adjustments, adjusted net income attributable to Valero stockholders was $1.3 billion, or $3.82 per share, for Q1 2024, compared to $3.1 billion, or $8.27 per share, in Q1 2023.

2. Refining Segment:
   
   

   • The Refining segment reported operating income of $1.7 billion for Q1 2024, down from $4.1 billion in Q1 2023. Refining throughput volumes averaged 2.8 million barrels per day during Q1 2024 despite planned maintenance activities.

3. Renewable Diesel (Diamond Green Diesel):
   
   

   • The Renewable Diesel segment, including the Diamond Green Diesel joint venture (DGD), reported $190 million of operating income for Q1 2024. Segment sales volumes averaged 3.7 million gallons per day, driven by additional volumes from the DGD Port Arthur plant.

4. Ethanol Segment:
   
   

   • The Ethanol segment reported $10 million of operating income for Q1 2024. Ethanol production volumes averaged 4.5 million gallons per day.

5. Corporate and Other:
   
   

   • General and administrative expenses were $258 million in Q1 2024.

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Following Valero Energy Corporation’s Q1 2024 earnings report, the stock market had mixed reactions. Let’s delve into the details:

1. Earnings Per Share (EPS):

   • Valero reported earnings per share (EPS) of $3.82, which exceeded the analyst estimate of $3.24.

   • This positive EPS performance likely contributed to investor confidence.

2. Revenue:
   
   

   • The company’s revenue for Q1 2024 was $31.76 billion, which fell short of the analyst estimate of $33.09 billion.

   • The revenue miss might have tempered market enthusiasm.

3. Operational Highlights:
   
   

   • Refining Segment: Valero’s refining segment reported an operating income of $1.7 billion for Q1 2024, a significant decrease from $4.1 billion in Q1 2023. This decline was influenced by planned maintenance activities.

   • Renewable Diesel: The renewable diesel segment, including contributions from the Diamond Green Diesel joint venture, posted an operating income of $190 million. Although slightly down from Q1 2023, this segment remained resilient.

   • Ethanol Segment: The ethanol segment saw a decrease in operating income to $10 million from $39 million, attributed to lower ethanol margins.

4. Strategic Positioning:
   
   

   • Valero continues to focus on operational excellence and disciplined capital investment.

   • The company’s strategic updates include the SAF (sustainable aviation fuel) project at the DGD Port Arthur plant, expected to start in Q4 2024, enhancing SAF production capabilities.