Valero Energy Corporation
) posted adjusted third quarter 2013 income of 57 cents per
share, surpassing the Zacks Consensus Estimate of 42 cents by
The quarterly earnings compare unfavorably with the year-ago
adjusted earnings of $1.90 per share. The decline was mainly due
to lower refining throughput margins in each of the company's
regions and higher refining operating expenses.
Total revenue for the quarter increased 4.1% year over year to
$36,137.0 million from $34,726.0 million and beat the Zacks
Consensus Estimate of $30,499.0 million.
During the quarter, refining throughput volumes were
approximately 2.77 million barrels per day, up from the
year-earlier level of 2.60 million barrels a day. This was
primarily due to less unplanned maintenance activity and less
By feedstock composition, sweet crude, medium/light sour crude
and heavy sour crude accounted for 40%, 16% and 17%,
respectively. The remaining volumes came from residuals, other
feedstock as well as blendstocks and others.
The Gulf Coast accounted for approximately 56% of the total
volume. The Mid-Continent, North Atlantic and West Coast regions
accounted for 16%, 18% and 10%, respectively.
Company-wide throughput margins decreased considerably to $7.76
per barrel from the year-ago level of $13.12 per barrel. The
decrease was due to lower discounts for gasoline and diesel
margins as well as lesser light sweet and sour crude oil.
Average throughput margin realized was $7.88 per barrel in the
U.S. Gulf Coast (down from $11.05 per barrel in the year-earlier
quarter), $9.22 per barrel in the U.S. Mid-Continent (down from
$22.07), $7.86 per barrel in the North Atlantic (down from
$13.25) and $4.60 per barrel in the U.S. West Coast (down from
Total operating cost per barrel was $5.41 during the quarter,
4.6% higher than the year-earlier figure of $5.17. Refining
operating expenses per barrel were $3.74 versus $3.72 in the
year-ago quarter. Depreciation and amortization expenses
increased 15.2% year over year to $1.67 per barrel.
Capital Expenditure & Balance Sheet
Third quarter capital expenditure totaled $557.0 million,
including $78 million for turnarounds and catalyst expenditures.
At the end of the quarter, the company had cash and temporary
cash investments of $1.9 billion. Valero also rewarded
shareholders $122 million through dividends.
Valero maintained its total capital spending for 2013 at around
$2.85 billion, including spending for turnarounds and catalyst
expenditures as well as the retail segment. For 2014, Valero
expects capital expenditures of $3.0 billion.
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VALERO ENERGY (VLO): Free Stock Analysis
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The stock retains a Zacks Rank #4 (Sell). However, there are
certain Zacks Ranked #1 stocks -
TransAtlantic Petroleum Ltd
Matador Resources Company
Northern Oil and Gas, Inc.
) - that appear more rewarding in the short term.