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Valero Energy Corp VLO

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Valero Bounces Back to Profitably in the Second Quarter

Allen Good, CFA Sector Strategist

Analyst Note

| Allen Good, CFA |

Valero returned to profitability in the second quarter, reporting adjusted earnings of $197 million compared with a loss of $504 million the year before. The improvement was largely attributable to the refining segment that swung to adjusted operating income of $361 million from a $383 million loss the year before on higher volumes and stronger margins. The renewable diesel segment continues to perform well, reporting operating income of $248 million compared with $129 million the year before on higher volumes and stronger margins. The segment’s impact on overall earnings should continue to grow as capacity will nearly quadruple in the next few years. Ethanol segment adjusted operating income improved to $99 million from a loss of $20 million million the year before on higher volumes and stronger margins, as well.

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Company Profile

Business Description

Valero Energy is one of the largest independent refiners in the United States. It operates 14 refineries with a total throughput capacity of 3.2 million barrels a day in the United States, Canada, and the United Kingdom. Valero also owns 14 ethanol plants with capacity of 1.7 billion gallons of ethanol a year and holds a 50% stake in Diamond Green Diesel, which has capacity to produce 275 million gallons per year of renewable diesel.

Contact
One Valero Way
San Antonio, TX, 78249
T +1 210 345-2000
Sector Energy
Industry Oil & Gas Refining & Marketing
Most Recent Earnings Jun 30, 2021
Fiscal Year End Dec 31, 2020
Stock Type Hard Assets
Employees 9,964

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