Valero Energy Reports 2020 Fourth Quarter and Full Year Results and Declares Regular Cash Dividend on Common Stock
- Reported a net loss attributable to Valero stockholders of $359 million, or $0.88 per share, for the fourth quarter and $1.4 billion, or $3.50 per share, for the year.
- Reported an adjusted net loss attributable to Valero stockholders of $429 million, or $1.06 per share, for the fourth quarter and $1.3 billion, or $3.12 per share, for the year.
- Returned $400 million in cash to stockholders through dividends in the fourth quarter and $1.8 billion through dividends and stock buybacks in the year.
- Declared a regular quarterly cash dividend of $0.98 per share.
- Completed and started up the St. Charles Alkylation unit on schedule and under budget.
- Approved a new 470 million gallons per year renewable diesel plant at Valero’s Port Arthur refinery (DGD 3), which is expected to commence operations in 2023.
SAN ANTONIO–(BUSINESS WIRE)–Valero Energy Corporation (NYSE: VLO, “Valero”) today reported a net loss attributable to Valero stockholders of $359 million, or $0.88 per share, for the fourth quarter of 2020, compared to net income of $1.1 billion, or $2.58 per share, for the fourth quarter of 2019. Excluding the adjustments shown in the accompanying earnings release tables, the adjusted net loss attributable to Valero stockholders was $429 million, or $1.06 per share, for the fourth quarter of 2020, compared to fourth quarter 2019 adjusted net income attributable to Valero stockholders of $873 million, or $2.13 per share. Fourth quarter 2020 adjusted results exclude the after-tax benefit from a LIFO liquidation adjustment of $70 million.
For the year ended December 31, 2020, the net loss attributable to Valero stockholders was $1.4 billion, or $3.50 per share, compared to net income of $2.4 billion, or $5.84 per share, in 2019. Excluding the adjustments shown in the accompanying earnings release tables, the adjusted net loss attributable to Valero stockholders was $1.3 billion, or $3.12 per share, for 2020, compared to adjusted net income attributable to Valero stockholders of $2.4 billion, or $5.70 per share, in 2019.
“We expect to see continued improvement in product demand with widespread vaccine distribution around the world,” said Joe Gorder, Valero Chairman and Chief Executive Officer. “We also expect a faster recovery in refining margins with the continued shutdowns and conversions of uncompetitive refineries.”
Refining
The refining segment reported a $377 million operating loss for the fourth quarter of 2020, compared to operating income of $1.4 billion for the fourth quarter of 2019. Excluding a LIFO liquidation adjustment and other operating expenses, the fourth quarter 2020 adjusted operating loss was $476 million. Refinery throughput volumes averaged 2.6 million barrels per day in the fourth quarter of 2020, which was 468 thousand barrels per day lower than the fourth quarter of 2019.
Operationally, the refining segment achieved record employee safety performance, process safety and environmental performance in 2020. “Despite the pandemic-induced financial challenges, our commitment to safety and environmental stewardship never wavered,” said Gorder.
Renewable Diesel
The renewable diesel segment, which consists of the Diamond Green Diesel (DGD) joint venture, reported $127 million of operating income for the fourth quarter of 2020, compared to $541 million for the fourth quarter of 2019. After adjusting for the retroactive blender’s tax credit in 2019, adjusted renewable diesel operating income was $187 million for the fourth quarter of 2019. Renewable diesel sales volumes averaged 618 thousand gallons per day in the fourth quarter of 2020, a decrease of 226 thousand gallons per day versus the fourth quarter of 2019 due to the effect of planned maintenance in the fourth quarter of 2020. The renewable diesel segment set a record for annual sales volumes of 787 thousand gallons per day in 2020. As a result of continuous process improvement and optimization, the capacity of the existing St. Charles renewable diesel plant (DGD 1) has increased from 275 million gallons per year to 290 million gallons per year.
Ethanol
The ethanol segment reported $15 million of operating income for the fourth quarter of 2020, compared to $36 million for the fourth quarter of 2019. Fourth quarter 2020 adjusted operating income was $17 million. Ethanol production volumes averaged 4.1 million gallons per day in the fourth quarter of 2020, which was 197 thousand gallons per day lower than the fourth quarter of 2019. The decrease in operating income was attributed primarily to lower margins resulting from higher corn prices and lower ethanol prices.
Corporate and Other
General and administrative expenses were $224 million in the fourth quarter of 2020, compared to $243 million in the fourth quarter of 2019. For 2020, general and administrative expenses of $756 million were $112 million lower than 2019. The effective tax rate for 2020 was 45 percent, which was primarily the result of the carryback of our U.S. federal tax net operating loss to 2015 when the U.S. federal statutory tax rate was 35 percent.
Investing and Financing Activities
Capital investments totaled $622 million in the fourth quarter of 2020, of which $214 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 $458 million in the fourth quarter of 2020 and $2.0 billion for the full year.
Net cash provided by operating activities in 2020 was $948 million. Included in this amount was a $345 million unfavorable impact from working capital and $338 million associated with our joint venture partner’s share of DGD’s net cash provided by operating activities, excluding changes in DGD’s working capital. Excluding these items, adjusted net cash provided by operating activities was $955 million.
Valero returned $400 million to stockholders through dividends in the fourth quarter of 2020. In 2020, Valero returned $1.8 billion to stockholders, or 184 percent of adjusted net cash provided by operating activities, consisting of $156 million of stock buybacks and $1.6 billion in dividends. The 2020 total payout ratio was 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.
Declaration of Regular Cash Dividend
The Board of Directors has declared a regular quarterly common stock dividend of $0.98 per share payable on March 4, 2021 to holders of record at the close of business on February 11, 2021.
Liquidity and Financial Position
Valero ended 2020 with $14.7 billion of total debt and finance lease obligations and $3.3 billion of cash and cash equivalents. The debt to capitalization ratio, net of cash and cash equivalents, was 37 percent as of December 31, 2020.
Strategic Update
In 2020, Valero completed several strategic projects on schedule and under budget and continued to make progress on other projects despite challenges related to the COVID-19 pandemic and several hurricanes. The Pasadena terminal project, which was completed in the first quarter, expands the company’s product logistics portfolio, increases biofuel blending capacity and enhances export flexibility. The St. Charles Alkylation unit, which started up in the fourth quarter, is designed to convert low-value feedstocks into a premium alkylate product. The Pembroke Cogen project and the Diamond Pipeline expansion are on track to be completed in the third quarter and fourth quarter of 2021, respectively, and the Port Arthur Coker project is expected to be completed in 2023.
Valero continues to grow its position as the largest renewable fuels producer in North America with plans to quadruple its renewable diesel production by the end of 2023. The DGD plant expansion at St. Charles (DGD 2), which is expected to increase renewable diesel production by 400 million gallons per year, is expected to be completed in the fourth quarter of 2021. Valero and its joint venture partner have also approved a new 470 million gallons per year renewable diesel plant (DGD 3) at Valero’s Port Arthur, Texas refinery. The new plant is expected to commence operations in the second half of 2023, increasing DGD’s total annual production capacity to approximately 1.2 billion gallons of renewable diesel and 50 million gallons of renewable naphtha.
“We expect low-carbon fuel policies to continue to expand globally and drive demand for renewable fuels,” said Gorder, “and to that end, we are applying our liquid fuels expertise to continue to expand our long-term competitive advantage in low-carbon transportation fuels with the expansion of DGD.”
Capital investments attributable to Valero are forecasted at $2.0 billion in 2021, of which approximately 60 percent is for sustaining the business and approximately 40 percent is for growth projects. Almost half of Valero’s 2021 growth capital is allocated to expanding the renewable diesel business.
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 13 ethanol plants with a combined production capacity of approximately 1.68 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 owns and 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.investorvalero.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, Senior 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,” “forecast,” 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, the timing or effectiveness of the vaccine distribution, 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 |
|
Year Ended |
||||||||||||||||
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
||||||||||||
|
Statement of income data |
|
|
|
|
|
|
|
||||||||||||
|
Revenues |
$ |
16,604 |
|
|
|
$ |
27,879 |
|
|
|
$ |
64,912 |
|
|
|
$ |
108,324 |
|
|
|
Cost of sales: |
|
|
|
|
|
|
|
||||||||||||
|
Cost of materials and other (a) (b) |
15,101 |
|
|
|
24,080 |
|
|
|
58,933 |
|
|
|
96,476 |
|
|
||||
|
Lower of cost or market (LCM) inventory valuation adjustment (c) |
— |
|
|
|
— |
|
|
|
(19 |
) |
|
|
— |
|
|
||||
|
Operating expenses (excluding depreciation and amortization expense reflected below) |
1,167 |
|
|
|
1,239 |
|
|
|
4,435 |
|
|
|
4,868 |
|
|
||||
|
Depreciation and amortization expense (d) |
566 |
|
|
|
557 |
|
|
|
2,303 |
|
|
|
2,202 |
|
|
||||
|
Total cost of sales |
16,834 |
|
|
|
25,876 |
|
|
|
65,652 |
|
|
|
103,546 |
|
|
||||
|
Other operating expenses |
5 |
|
|
|
7 |
|
|
|
35 |
|
|
|
21 |
|
|
||||
|
General and administrative expenses (excluding depreciation and amortization expense reflected below) |
224 |
|
|
|
243 |
|
|
|
756 |
|
|
|
868 |
|
|
||||
|
Depreciation and amortization expense |
11 |
|
|
|
14 |
|
|
|
48 |
|
|
|
53 |
|
|
||||
|
Operating income (loss) |
(470 |
) |
|
|
1,739 |
|
|
|
(1,579 |
) |
|
|
3,836 |
|
|
||||
|
Other income, net (e) |
25 |
|
|
|
36 |
|
|
|
132 |
|
|
|
104 |
|
|
||||
|
Interest and debt expense, net of capitalized interest |
(153 |
) |
|
|
(119 |
) |
|
|
(563 |
) |
|
|
(454 |
) |
|
||||
|
Income (loss) before income tax expense (benefit) |
(598 |
) |
|
|
1,656 |
|
|
|
(2,010 |
) |
|
|
3,486 |
|
|
||||
|
Income tax expense (benefit) |
(289 |
) |
|
|
326 |
|
|
|
(903 |
) |
|
|
702 |
|
|
||||
|
Net income (loss) |
(309 |
) |
|
|
1,330 |
|
|
|
(1,107 |
) |
|
|
2,784 |
|
|
||||
|
Less: Net income attributable to noncontrolling interests (b) |
50 |
|
|
|
270 |
|
|
|
314 |
|
|
|
362 |
|
|
||||
|
Net income (loss) attributable to Valero Energy Corporation stockholders |
$ |
(359 |
) |
|
|
$ |
1,060 |
|
|
|
$ |
(1,421 |
) |
|
|
$ |
2,422 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Earnings (loss) per common share |
$ |
(0.88 |
) |
|
|
$ |
2.58 |
|
|
|
$ |
(3.50 |
) |
|
|
$ |
5.84 |
|
|
|
Weighted-average common shares outstanding (in millions) |
407 |
|
|
|
409 |
|
|
|
407 |
|
|
|
413 |
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||||||
|
Earnings (loss) per common share – assuming dilution |
$ |
(0.88 |
) |
|
|
$ |
2.58 |
|
|
|
$ |
(3.50 |
) |
|
|
$ |
5.84 |
|
|
|
Weighted-average common shares outstanding – assuming dilution (in millions) (f) |
407 |
|
|
|
410 |
|
|
|
407 |
|
|
|
414 |
|
|
||||
|
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 December 31, 2020 |
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Revenues: |
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Revenues from external customers |
$ |
15,513 |
|
|
|
$ |
205 |
|
|
|
$ |
886 |
|
|
$ |
— |
|
|
|
$ |
16,604 |
|
|
|
Intersegment revenues |
2 |
|
|
|
62 |
|
|
|
66 |
|
|
(130 |
) |
|
|
— |
|
|
|||||
|
Total revenues |
15,515 |
|
|
|
267 |
|
|
|
952 |
|
|
(130 |
) |
|
|
16,604 |
|
|
|||||
|
Cost of sales: |
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Cost of materials and other (a) (b) |
14,324 |
|
|
|
107 |
|
|
|
800 |
|
|
(130 |
) |
|
|
15,101 |
|
|
|||||
|
Operating expenses (excluding depreciation and amortization expense reflected below) |
1,032 |
|
|
|
22 |
|
|
|
113 |
|
|
— |
|
|
|
1,167 |
|
|
|||||
|
Depreciation and amortization expense |
531 |
|
|
|
11 |
|
|
|
24 |
|
|
— |
|
|
|
566 |
|
|
|||||
|
Total cost of sales |
15,887 |
|
|
|
140 |
|
|
|
937 |
|
|
(130 |
) |
|
|
16,834 |
|
|
|||||
|
Other operating expenses |
5 |
|
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
5 |
|
|
|||||
|
General and administrative expenses (excluding depreciation and amortization expense reflected below) |
— |
|
|
|
— |
|
|
|
— |
|
|
224 |
|
|
|
224 |
|
|
|||||
|
Depreciation and amortization expense |
— |
|
|
|
— |
|
|
|
— |
|
|
11 |
|
|
|
11 |
|
|
|||||
|
Operating income (loss) by segment |
$ |
(377 |
) |
|
|
$ |
127 |
|
|
|
$ |
15 |
|
|
$ |
(235 |
) |
|
|
$ |
(470 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Three months ended December 31, 2019 |
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Revenues: |
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Revenues from external customers |
$ |
26,637 |
|
|
|
$ |
284 |
|
|
|
$ |
958 |
|
|
$ |
— |
|
|
|
$ |
27,879 |
|
|
|
Intersegment revenues |
6 |
|
|
|
73 |
|
|
|
69 |
|
|
(148 |
) |
|
|
— |
|
|
|||||
|
Total revenues |
26,643 |
|
|
|
357 |
|
|
|
1,027 |
|
|
(148 |
) |
|
|
27,879 |
|
|
|||||
|
Cost of sales: |
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Cost of materials and other (b) |
23,602 |
|
|
|
(217 |
) |
|
|
843 |
|
|
(148 |
) |
|
|
24,080 |
|
|
|||||
|
Operating expenses (excluding depreciation and amortization expense reflected below) |
1,092 |
|
|
|
21 |
|
|
|
126 |
|
|
— |
|
|
|
1,239 |
|
|
|||||
|
Depreciation and amortization expense |
523 |
|
|
|
12 |
|
|
|
22 |
|
|
— |
|
|
|
557 |
|
|
|||||
|
Total cost of sales |
25,217 |
|
|
|
(184 |
) |
|
|
991 |
|
|
(148 |
) |
|
|
25,876 |
|
|
|||||
|
Other operating expenses |
7 |
|
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
7 |
|
|
|||||
|
General and administrative expenses (excluding depreciation and amortization expense reflected below) |
— |
|
|
|
— |
|
|
|
— |
|
|
243 |
|
|
|
243 |
|
|
|||||
|
Depreciation and amortization expense |
— |
|
|
|
— |
|
|
|
— |
|
|
14 |
|
|
|
14 |
|
|
|||||
|
Operating income by segment |
$ |
1,419 |
|
|
|
$ |
541 |
|
|
|
$ |
36 |
|
|
$ |
(257 |
) |
|
|
$ |
1,739 |
|
|
|
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 |
||||||||||||||
|
Year ended December 31, 2020 |
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Revenues: |
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Revenues from external customers |
$ |
60,840 |
|
|
|
$ |
1,055 |
|
|
$ |
3,017 |
|
|
|
$ |
— |
|
|
|
$ |
64,912 |
|
|
|
Intersegment revenues |
8 |
|
|
|
212 |
|
|
226 |
|
|
|
(446 |
) |
|
|
— |
|
|
|||||
|
Total revenues |
60,848 |
|
|
|
1,267 |
|
|
3,243 |
|
|
|
(446 |
) |
|
|
64,912 |
|
|
|||||
|
Cost of sales: |
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Cost of materials and other (a) (b) |
56,093 |
|
|
|
500 |
|
|
2,784 |
|
|
|
(444 |
) |
|
|
58,933 |
|
|
|||||
|
LCM inventory valuation adjustment (c) |
(19 |
) |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
(19 |
) |
|
|||||
|
Operating expenses (excluding depreciation and amortization expense reflected below) |
3,944 |
|
|
|
85 |
|
|
406 |
|
|
|
— |
|
|
|
4,435 |
|
|
|||||
|
Depreciation and amortization expense (d) |
2,138 |
|
|
|
44 |
|
|
121 |
|
|
|
— |
|
|
|
2,303 |
|
|
|||||
|
Total cost of sales |
62,156 |
|
|
|
629 |
|
|
3,311 |
|
|
|
(444 |
) |
|
|
65,652 |
|
|
|||||
|
Other operating expenses |
34 |
|
|
|
— |
|
|
1 |
|
|
|
— |
|
|
|
35 |
|
|
|||||
|
General and administrative expenses (excluding depreciation and amortization expense reflected below) |
— |
|
|
|
— |
|
|
— |
|
|
|
756 |
|
|
|
756 |
|
|
|||||
|
Depreciation and amortization expense |
— |
|
|
|
— |
|
|
— |
|
|
|
48 |
|
|
|
48 |
|
|
|||||
|
Operating income (loss) by segment |
$ |
(1,342 |
) |
|
|
$ |
638 |
|
|
$ |
(69 |
) |
|
|
$ |
(806 |
) |
|
|
$ |
(1,579 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Year ended December 31, 2019 |
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Revenues: |
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Revenues from external customers |
$ |
103,746 |
|
|
|
$ |
970 |
|
|
$ |
3,606 |
|
|
|
$ |
2 |
|
|
|
$ |
108,324 |
|
|
|
Intersegment revenues |
18 |
|
|
|
247 |
|
|
231 |
|
|
|
(496 |
) |
|
|
— |
|
|
|||||
|
Total revenues |
103,764 |
|
|
|
1,217 |
|
|
3,837 |
|
|
|
(494 |
) |
|
|
108,324 |
|
|
|||||
|
Cost of sales: |
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Cost of materials and other (b) |
93,371 |
|
|
|
360 |
|
|
3,239 |
|
|
|
(494 |
) |
|
|
96,476 |
|
|
|||||
|
Operating expenses (excluding depreciation and amortization expense reflected below) |
4,289 |
|
|
|
75 |
|
|
504 |
|
|
|
— |
|
|
|
4,868 |
|
|
|||||
|
Depreciation and amortization expense |
2,062 |
|
|
|
50 |
|
|
90 |
|
|
|
— |
|
|
|
2,202 |
|
|
|||||
|
Total cost of sales |
99,722 |
|
|
|
485 |
|
|
3,833 |
|
|
|
(494 |
) |
|
|
103,546 |
|
|
|||||
|
Other operating expenses |
20 |
|
|
|
— |
|
|
1 |
|
|
|
— |
|
|
|
21 |
|
|
|||||
|
General and administrative expenses (excluding depreciation and amortization expense reflected below) |
— |
|
|
|
— |
|
|
— |
|
|
|
868 |
|
|
|
868 |
|
|
|||||
|
Depreciation and amortization expense |
— |
|
|
|
— |
|
|
— |
|
|
|
53 |
|
|
|
53 |
|
|
|||||
|
Operating income by segment |
$ |
4,022 |
|
|
|
$ |
732 |
|
|
$ |
3 |
|
|
|
$ |
(921 |
) |
|
|
$ |
3,836 |
|
|
|
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 |
|
Year 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 |
$ |
(359 |
) |
|
|
$ |
1,060 |
|
|
|
$ |
(1,421 |
) |
|
|
$ |
2,422 |
|
|
|
Adjustments: |
|
|
|
|
|
|
|
||||||||||||
|
Last-in, first-out (LIFO) liquidation adjustment (a) |
(102 |
) |
|
|
— |
|
|
|
224 |
|
|
|
— |
|
|
||||
|
Income tax expense (benefit) related to the LIFO liquidation adjustment |
32 |
|
|
|
— |
|
|
|
(76 |
) |
|
|
— |
|
|
||||
|
LIFO liquidation adjustment, net of taxes |
(70 |
) |
|
|
— |
|
|
|
148 |
|
|
|
— |
|
|
||||
|
Change in estimated useful life (d) |
— |
|
|
|
— |
|
|
|
30 |
|
|
|
— |
|
|
||||
|
Income tax benefit related to the change in estimated useful life |
— |
|
|
|
— |
|
|
|
(6 |
) |
|
|
— |
|
|
||||
|
Change in estimated useful life, net of taxes |
— |
|
|
|
— |
|
|
|
24 |
|
|
|
— |
|
|
||||
|
LCM inventory valuation adjustment (c) |
— |
|
|
|
— |
|
|
|
(19 |
) |
|
|
— |
|
|
||||
|
Income tax expense related to the LCM inventory valuation adjustment |
— |
|
|
|
— |
|
|
|
3 |
|
|
|
— |
|
|
||||
|
LCM inventory valuation adjustment, net of taxes |
— |
|
|
|
— |
|
|
|
(16 |
) |
|
|
— |
|
|
||||
|
Blender’s tax credit attributable to Valero Energy Corporation stockholders (b) |
— |
|
|
|
(192 |
) |
|
|
— |
|
|
|
(80 |
) |
|
||||
|
Income tax expense related to blender’s tax credit |
— |
|
|
|
5 |
|
|
|
— |
|
|
|
2 |
|
|
||||
|
Blender’s tax credit attributable to Valero Energy Corporation stockholders, net of taxes |
— |
|
|
|
(187 |
) |
|
|
— |
|
|
|
(78 |
) |
|
||||
|
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 |
(70 |
) |
|
|
(187 |
) |
|
|
156 |
|
|
|
(61 |
) |
|
||||
|
Adjusted net income (loss) attributable to Valero Energy Corporation stockholders |
$ |
(429 |
) |
|
|
$ |
873 |
|
|
|
$ |
(1,265 |
) |
|
|
$ |
2,361 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
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) |
$ |
(0.88 |
) |
|
|
$ |
2.58 |
|
|
|
$ |
(3.50 |
) |
|
|
$ |
5.84 |
|
|
|
Adjustments: |
|
|
|
|
|
|
|
||||||||||||
|
LIFO liquidation adjustment (a) |
(0.18 |
) |
|
|
— |
|
|
|
0.36 |
|
|
|
— |
|
|
||||
|
Change in estimated useful life (d) |
— |
|
|
|
— |
|
|
|
0.06 |
|
|
|
— |
|
|
||||
|
LCM inventory valuation adjustment (c) |
— |
|
|
|
— |
|
|
|
(0.04 |
) |
|
|
— |
|
|
||||
|
Blender’s tax credit attributable to Valero Energy Corporation stockholders (b) |
— |
|
|
|
(0.45 |
) |
|
|
— |
|
|
|
(0.18 |
) |
|
||||
|
Loss on early redemption of debt (e) |
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.04 |
|
|
||||
|
Total adjustments |
(0.18 |
) |
|
|
(0.45 |
) |
|
|
0.38 |
|
|
|
(0.14 |
) |
|
||||
|
Adjusted earnings (loss) per common share – assuming dilution (f) |
$ |
(1.06 |
) |
|
|
$ |
2.13 |
|
|
|
$ |
(3.12 |
) |
|
|
$ |
5.70 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
See Notes to Earnings Release Tables. |
|||||||||||||||||||
Contacts
Valero Contacts
Investors:
Homer Bhullar, Vice President – Investor Relations, 210-345-1982
Eric Herbort, Senior Manager – Investor Relations, 210-345-3331
Gautam Srivastava, Senior Manager – Investor Relations, 210-345-3992
Media:
Lillian Riojas, Executive Director – Media Relations and Communications, 210-345-5002