Valero Power Corp. on Thursday reported $364 million in internet revenue attributable to shareholders for the third quarter, 86.1 p.c decrease than the identical three-month interval final yr as its common refining margin slumped 55.4 p.c.
The web revenue interprets to $1.14 per share, lacking the Zacks Consensus Estimate, which averages projections by brokerage analysts, of $1.29. Valero closed 1.2 p.c decrease at $131.36 on the New York Inventory Trade Thursday however opened at $133 Friday.
The San Antonio, Texas-based firm logged $9.09 in refining margin per barrel of throughput for the July–September quarter. Adjusted working revenue per barrel of throughput, which excludes bills that Valero deems not indicative of the “core working efficiency”, stood at $2.14.
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“Refining throughput volumes averaged 2.9 million barrels per day throughout a interval of heavy upkeep actions within the third quarter of 2024”, Valero stated in a press release.
Throughput within the Gulf Coast dropped to 1.8 million barrels a day (MMbd). Throughput in Valero’s three different refining areas — the Mid-Continent, the North Atlantic and the West Coast — all declined year-on-year.
United States consumption of motor gasoline within the third quarter averaged 9.12 MMbd, up from the identical interval in 2023 and secure in comparison with the prior quarter in 2024, in response to official information. Jet gas demand grew each year-on-year and quarter-on-quarter to 1.77 MMbd. Distillate gas oil demand dipped year-on-year however climbed quarter-on-quarter to three.79 MMbd. Residual gas oil demand inched up year-on-year however slipped quarter-on-quarter to 280,000 bd, the nation’s Power Data Administration stated in its newest Quick-Time period Power Outlook, revealed October 8.
In the meantime Valero’s renewable diesel phase logged $35 million in working revenue, down from $123 million for the third quarter of 2023. Gross sales volumes elevated to three.5 million gallons per day however the common margin decreased to $196 million from $262 million for the third quarter final yr.
It introduced Thursday that the sustainable aviation gas (SAF) mission at its three way partnership renewable diesel plant in Port Arthur, Texas, had been accomplished. The mission permits the plant to transform about half of its renewable diesel capability into SAF manufacturing.
Valero’s ethanol phase contributed $153 million in working revenue, down from $197 million for the comparable interval final yr. Gross sales volumes climbed to 4.6 million gallons per day however the common ethanol margin fell to $305 million from $342 million.
Valero’s working actions within the third quarter of 2024 generated $1.3 billion in internet money — $1.1 billion adjusted.
It paid $907 million to stockholders in the course of the interval, with dividends totaling $342 million. The opposite portion consisted of $565 million in frequent inventory redemptions. The full return to shareholders represents a payout ratio of 84 p.c, it stated. Valero defines payout ratio as dividends paid plus inventory buybacks divided by adjusted internet money from working actions.
“Valero stays dedicated to a through-cycle minimal annual payout ratio of 40 to 50 p.c”, Valero added.
Valero ended the quarter with $5.2 billion in money and money equivalents, $8.4 billion in whole debt and $2.5 billion in finance lease obligations.
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