Valero Energy (VLO) Q4 2023 earnings summary

Executive summary

• Q4 2023 net income was $1.2B, or $3.55/share; FY net income was $8.8B, or $24.92/share, the second-best year for adjusted earnings.

• FY adjusted net income was $8.8B, or $24.90/share, versus $11.6B, or $29.16/share, in 2022.

Financial highlights

• Q4 revenue was $35.4B versus $41.7B YoY; FY revenue was $144.8B versus $176.4B.

• Q4 operating income was $1.55B versus $4.30B YoY; FY operating income was $11.86B versus $15.69B.

• FY net income attributable to stockholders was $8.84B versus $11.53B in 2022; diluted EPS was $24.92 versus $29.04.

Outlook and guidance

• 2024 expected capital investments were $2.74B, or $2.26B attributable to the business after excluding other joint venture and VIE amounts.

• DGD Port Arthur SAF project remains on schedule for completion in Q1 2025; total cost is $315M, with half attributable to the 50% joint venture interest.

• SAF project expected to enable upgrading ~50% of the plant’s current 470M-gallon annual renewable diesel capacity to SAF.