What's This?
Share this page through your favorite social site/service or email this page to a colleague. Select from the list of provided links to share the URL of this page with interested parties. You may be required to log in to the selected social site/service to complete the process.
Sign up for e-mail alerts.
What's This?
You may automatically receive information by e-mail. To choose your options for e-mail notification, please enter your e-mail address and click Submit.
Valero Energy Reports 2011 Fourth Quarter and
Annual Results
SAN ANTONIO, January 31, 2012 - Valero Energy Corporation ("Valero," NYSE: VLO) today reported income from continuing operations of $45 million, or $0.08 per share, for the fourth quarter of 2011, versus $180 million, or $0.32 per share, for the fourth quarter of 2010. The fourth quarter 2011 results included an after-tax benefit of approximately $161 million, or $0.29 per share, from a year-end LIFO inventory decrement. For the year ended December 31, 2011, income from continuing operations was $2.1 billion, or $3.69 per share, versus $923 million, or $1.62 per share for the year ended December 31, 2010. Fourth quarter 2011 operating income was $167 million versus fourth quarter 2010 operating income of $378 million. The decrease in operating income was mainly due to a decrease of $1.84 per barrel in the refining throughput margin, particularly in the Gulf Coast region where the throughput margin decreased by $4.21 per barrel. The decrease in the throughput margin was primarily due to lower margins for gasoline and petrochemical feedstocks plus reduced discounts for medium and heavy sour feedstocks, such as Mars and Maya crude oils. Refining throughput volumes increased by 523,000 barrels per day in the fourth quarter of 2011 versus the fourth quarter of 2010. The increase in throughput volumes was mainly due to adding capacity from the acquisition of the Pembroke and Meraux refineries and operating the Aruba refinery, which was not in operation during the fourth quarter of 2010. "Although the fourth quarter clearly showed the volatility of the refining business, 2011 was a great year for Valero," said Valero Chairman and CEO Bill Klesse. "We had the highest annual earnings since 2008, acquired the Pembroke and Meraux refineries and related assets, completed several of our major capital projects, and paid off over $775 million in debt. We also increased our cash returned to shareholders by tripling the common stock dividend and conducting stock buybacks in the third and fourth quarters." "So far in 2012, product margins have improved versus the fourth quarter of 2011," Klesse continued. "The macro view for refining in 2012 looks promising given the combination of positive economic trends in the U.S., expectations of global demand growth, and continuing capacity rationalization in the industry, particularly in Europe, the U.S. East Coast, and the Caribbean." Valero's ethanol segment reported its highest quarter ever with $181 million in operating income, versus $70 million in the fourth quarter of 2010. The increase in ethanol operating income was mainly due to higher gross margins and an increase in production volumes to a record-high quarterly average of 3.5 million gallons per day. The ethanol segment also set an annual record with $396 million in operating income in 2011. Valero's retail segment reported $83 million in operating income during the fourth quarter of 2011 versus $61 million in operating income in the fourth quarter of 2010. The increase in operating income was mainly due to higher fuel margins and slightly higher volumes in U.S. retail operations. For 2011, the retail segment reported its most profitable year in history with $381 million in operating income. Contributing to the record-setting results was the Canadian retail business, which earned a record-high $168 million in annual operating income. Regarding cash flows in the fourth quarter of 2011, capital spending was $899 million, of which $128 million was for turnaround and catalyst expenditures. Valero paid $84 million in dividends on its common stock and paid $79 million to purchase Valero's shares. Valero also spent $547 million to acquire the Meraux refinery plus related logistics assets and inventories. Valero ended the fourth quarter with $1.0 billion in cash and temporary cash investments. For the full-year 2011, Valero's total capital spending, including turnaround and catalyst expenditures, was $3.0 billion, or $200 million below previous guidance of $3.2 billion. "2012 is a significant year for Valero as we focus on replacing the coker drums at St. Charles in April and completing the major hydrocracker projects at Port Arthur and St. Charles, which remain on-budget and on-schedule for completion later this year," Klesse said. "Our top priorities also include our common stock dividend and our investment grade credit rating. After moving beyond the high capital spending levels in 2011 and 2012, we believe our slate of growth projects, recent acquisitions, and operational improvements will enable Valero to significantly grow free cash flow." Valero's senior management will hold a conference call at 10 a.m. ET (9 a.m. CT) today to discuss this earnings release and provide an update on company operations. A live broadcast of the conference call will be available on the company's web site at www.valero.com.
About Valero
Safe-Harbor Statement
Contacts
VALERO ENERGY CORPORATION AND SUBSIDIARIES
Three Months Ended Twelve Months Ended December 31,
December 31, 2011 2010 2011 2010Statement of Income
Data (a) (b) (c): Operating revenues (1) $34,673
$22,164 $125,987 $82,233 Costs and expenses: Cost
of sales 32,738 20,260 115,719 74,458 Operating
expenses: Refining 979 734 3,406 2,944 Retail 170
170 678 654 Ethanol 97 96 399 363 General and
administrative expenses 129 164 571 531
Depreciation and amortization expense 393 362 1,534
1,405 Asset impairment loss - - - 2 Total costs and
expenses 34,506 21,786 122,307 80,357 Operating
income 167 378 3,680 1,876 Other income, net 15 77
43 106 Interest and debt expense, net of
capitalized interest (89) (121) (401) (484)Income
from continuing operations before income tax
expense 93 334 3,322 1,498 Income tax expense 48
154 1,226 575 Income from continuing operations 45
180 2,096 923 Loss from discontinued operations,
net of income taxes - (618) (7) (599)Net income
(loss) 45 (438) 2,089 324 Less: Net loss
attributable to noncontrolling interests (d) - -
(1) - Net income (loss) attributable to Valero
Energy Corporation stockholders $45 $(438) $2,090 $324 Net income (loss) attributable to Valero Energy Corporation stockholders (d): Continuing operations $45 $180 $2,097 $923 Discontinued operations - (618) (7) (599)Total $45 $(438) $2,090 $324 Earnings (loss) per common share: Continuing operations $0.08 $0.32 $3.70 $1.63 Discontinued operations - (1.09) (0.01) (1.06)Total $0.08 $(0.77) $3.69 $0.57 Weighted average common shares outstanding (in millions) 555 564 563 563 Earnings (loss) per common share - assuming dilution: Continuing operations $0.08 $0.32 $3.69 $1.62 Discontinued operations - (1.09) (0.01) (1.05)Total $0.08 $(0.77) $3.68 $0.57 Weighted average common shares outstanding - assuming dilution (in millions) 560 569 569 568 Dividends per common share $0.15 $0.05 $0.30 $0.20 Supplemental information: (1) Includes excise taxes on sales by our U.S. retail system $222 $224 $892 $891
VALERO ENERGY CORPORATION AND SUBSIDIARIES
Three Months Ended Twelve Months Ended December 31,
December 31, 2011 2010 2011 2010Operating income by
business segment: Refining $40 $424 $3,516 $1,903
Retail 83 61 381 346 Ethanol 181 70 396 209
Corporate (137) (177) (613) (582)Total $167 $378
$3,680 $1,876 Depreciation and amortization expense
by business segment: Refining $343 $312 $1,338 $1,210 Retail 31 28 115 108 Ethanol 11 9 39 36 Corporate 8 13 42 51 Total $393 $362 $1,534 $1,405 Operating highlights: Refining (a) (b): Throughput margin per barrel $5.46 $7.30 $9.30 $7.80 Operating costs per barrel: Operating expenses 3.92 3.64 3.83 3.79 Depreciation and amortization expense 1.37 1.55 1.51 1.56 Total operating costs per barrel 5.29 5.19 5.34 5.35 Operating income per barrel $0.17 $2.11 $3.96 $2.45 Throughput volumes (thousand barrels per day): Feedstocks: Heavy sour crude 454 475 454 458 Medium/light sour crude 522 348 442 386 Acidic sweet crude 112 88 116 60 Sweet crude 894 708 745 668 Residuals 274 228 282 204 Other feedstocks 123 92 122 110 Total feedstocks 2,379 1,939 2,161 1,886 Blendstocks and other 334 251 273 243 Total throughput volumes 2,713 2,190 2,434 2,129 Yields (thousand barrels per day): Gasolines and blendstocks 1,270 1,053 1,120 1,048 Distillates 957 764 834 712 Other products (e) 505 402 494 395 Total yields 2,732 2,219 2,448 2,155
VALERO ENERGY CORPORATION AND SUBSIDIARIES
Three Months Ended Twelve Months Ended December 31,
December 31, 2011 2010 2011 2010Refining operating
highlights by region (f): Gulf Coast (a): Operating
income (loss) $(231) $322 $1,833 $1,349 Throughput
volumes (thousand barrels per day) 1,546 1,313
1,450 1,280 Throughput margin per barrel $3.57
$7.78 $8.63 $8.20 Operating costs per barrel:
Operating expenses 3.77 3.50 3.66 3.71 Depreciation
and amortization expense 1.42 1.61 1.50 1.60 Total
operating costs per barrel 5.19 5.11 5.16 5.31
Operating income (loss) per barrel $(1.62) $2.67
$3.47 $2.89 Mid-Continent: Operating income $267
$68 $1,413 $339 Throughput volumes (thousand
barrels per day) 439 418 411 398 Throughput margin
per barrel $12.17 $6.62 $15.10 $7.33 Operating
costs per barrel: Operating expenses 4.16 3.54 4.15
3.60 Depreciation and amortization expense 1.42
1.32 1.52 1.40 Total operating costs per barrel
5.58 4.86 5.67 5.00 Operating income per barrel
$6.59 $1.76 $9.43 $2.33 North Atlantic (b):
Operating income $67 $48 $171 $129 Throughput
volumes (thousand barrels per day) 463 212 317 195
Throughput margin per barrel $5.63 $6.65 $5.43
$6.18 Operating costs per barrel: Operating
expenses 3.36 3.02 3.08 2.99 Depreciation and
amortization expense 0.68 1.17 0.87 1.39 Total
operating costs per barrel 4.04 4.19 3.95 4.38
Operating income per barrel $1.59 $2.46 $1.48 $1.80
West Coast: Operating income (loss) $(63) $(14) $99
$88 Throughput volumes (thousand barrels per day)
265 247 256 256 Throughput margin per barrel $5.01
$6.42 $8.60 $7.73 Operating costs per barrel:
Operating expenses 5.37 5.10 5.25 5.09 Depreciation
and amortization expense 2.21 1.95 2.29 1.69 Total
operating costs per barrel 7.58 7.05 7.54 6.78
Operating income (loss) per barrel $(2.57) $(0.63)
$1.06 $0.95 Operating income for regions above $40
$424 $3,516 $1,905 Asset impairment loss applicable
to refining - - - (2)Total refining operating
income $40 $424 $3,516 $1,903
VALERO ENERGY CORPORATION AND SUBSIDIARIES
Three Months Ended Twelve Months Ended December 31,
December 31, 2011 2010 2011 2010Average market
reference prices and differentials (g): Feedstocks
(dollars per barrel): Louisiana Light Sweet (LLS)
crude oil $110.73 $88.43 $111.47 $81.62 LLS less
West Texas Intermediate (WTI) crude oil 16.70 3.34
16.42 2.21 LLS less Alaska North Slope (ANS) crude
oil 0.44 3.36 1.93 2.55 LLS less Brent crude oil
1.62 1.93 0.54 2.09 LLS less Mars crude oil 3.83
4.30 4.00 3.62 LLS less Maya crude oil 7.19 12.75
12.72 11.34 WTI crude oil $94.03 $85.09 $95.05
$79.41 WTI less Mars crude oil (12.87) 0.96 (12.42)
1.41 WTI less Maya crude oil (9.51) 9.40 (3.70)
9.13 Products (dollars per barrel): Gulf Coast:
Conventional 87 gasoline less LLS $(2.05) $2.42
$5.04 $5.30 Ultra-low-sulfur diesel less LLS 13.71
9.88 13.24 8.93 Propylene less LLS (27.39) (0.58)
7.69 5.71 Conventional 87 gasoline less WTI 14.65
5.76 21.46 7.51 Ultra-low-sulfur diesel less WTI
30.41 13.22 29.66 11.14 Propylene less WTI (10.69)
2.76 24.11 7.92 Mid-Continent: Conventional 87
gasoline less WTI $15.16 $6.49 $22.37 $8.20
Ultra-low-sulfur diesel less WTI 32.02 14.44 31.06
11.91 North Atlantic: Conventional 87 gasoline less
Brent $3.12 $8.54 $6.24 $8.38 Ultra-low-sulfur
diesel less Brent 17.42 14.08 15.64 12.63
Conventional 87 gasoline less WTI 18.20 9.95 22.12
8.50 Ultra-low-sulfur diesel less WTI 32.50 15.50
31.52 12.76 West Coast: CARBOB 87 gasoline less ANS
$5.84 $11.94 $11.48 $14.21 CARB diesel less ANS
18.20 16.31 18.47 13.79 CARBOB 87 gasoline less WTI
22.10 11.93 25.97 13.88 CARB diesel less WTI 34.46
16.29 32.96 13.45 New York Harbor corn crush
(dollars per gallon) $0.50 $0.32 $0.25 $0.39
VALERO ENERGY CORPORATION AND SUBSIDIARIES
Three Months Ended Twelve Months Ended December 31,
December 31, 2011 2010 2011 2010Retail - U.S.:
Operating income $48 $19 $213 $200 Company-operated
fuel sites (average) 995 992 994 990 Fuel volumes
(gallons per day per site) 5,077 5,000 5,060 5,086
Fuel margin per gallon $0.139 $0.086 $0.144 $0.140
Merchandise sales $293 $295 $1,223 $1,205
Merchandise margin (percentage of sales) 29.0%
28.2% 28.7% 28.3%Margin on miscellaneous sales $22
$21 $88 $86 Operating expenses $104 $106 $416 $412
Depreciation and amortization expense $21 $19 $77
$73 Retail - Canada: Operating income $35 $42 $168
$146 Fuel volumes (thousand gallons per day) 3,152
3,277 3,195 3,168 Fuel margin per gallon $0.287
$0.291 $0.299 $0.271 Merchandise sales $64 $61 $261
$240 Merchandise margin (percentage of sales) 28.6%
29.4% 29.4% 30.1%Margin on miscellaneous sales $10
$9 $43 $38 Operating expenses $66 $64 $262 $242
Depreciation and amortization expense $10 $9 $38
$35 Ethanol: Operating income $181 $70 $396 $209
Production (thousand gallons per day) 3,455 3,250
3,352 3,021 Gross margin per gallon of production
$0.91 $0.59 $0.68 $0.55 Operating costs per gallon
of production: Operating expenses 0.31 0.32 0.33
0.33 Depreciation and amortization expense 0.03
0.03 0.03 0.03 Total operating costs per gallon of
production 0.34 0.35 0.36 0.36 Operating income per
gallon of production $0.57 $0.24 $0.32 $0.19
December 31, 2011 2010Balance Sheet Data: Cash and
temporary cash investments $1,024 $3,334 Total debt
7,741 8,337
VALERO ENERGY CORPORATION AND SUBSIDIARIES
(a)The statement of income data and operating
highlights for the refining segment and Gulf Coast
region reflect the results of operations of our
refinery in Meraux, Louisiana (Meraux Refinery),
including related logistics assets, from the date
of its acquisition, October 1, 2011, through
December 31, 2011. We acquired this refinery,
inventories, and offsite logistics assets from
Murphy Oil Corporation for approximately $547
million. (b)The statement of income data and
operating highlights for the refining segment and
North Atlantic region reflect the results of
operations of our refinery in Wales, United Kingdom
(Pembroke Refinery), including the related
marketing and logistics business, from the date of
its acquisition, August 1, 2011, through December
31, 2011. We acquired this business from a
subsidiary of Chevron Corporation for approximately
$1.7 billion, net of cash acquired. (c)In 2010, we
sold our refinery in Paulsboro, New Jersey and our
shutdown refinery in Delaware City, Delaware. The
results of operations of these refineries are
reflected in discontinued operations, and the
operating highlights for the refining segment and
North Atlantic region exclude these refineries.
(d)We own a 50 percent interest in Diamond Green
Diesel Holdings LLC (DGD). Valero
consolidates the financial statements of DGD due to
our controlling financial interest in this
entity. The losses incurred by DGD that are
attributable to the owner of the remaining interest
have been added back to net income to arrive at net
income attributable to Valero. DGD is
currently building a plant that will process animal
fats, used cooking oils, and other vegetable oils
into renewable green diesel, and the plant is
located next to our St. Charles Refinery in Norco,
Louisiana. In connection with the Pembroke Refinery
acquisition, we acquired an 85 percent interest in
Mainline Pipelines Limited (MLP). On December
1, 2011, we completed the purchase of the remaining
15 percent interest. MLP owns a pipeline that
distributes gasoline and distillates products from
the Pembroke Refinery to terminals in the United
Kingdom. (e)Primarily includes petrochemicals, gas
oils, No. 6 fuel oil, petroleum coke, and asphalt.
(f)The regions reflected herein contain the
following refineries: Gulf Coast- Corpus Christi
East, Corpus Christi West, Texas City, Houston,
Three Rivers, St. Charles, Aruba, Port Arthur, and
Meraux Refineries; Mid-Continent- McKee, Ardmore,
and Memphis Refineries; North Atlantic (formerly
known as Northeast)- Pembroke and Quebec City
Refineries; and West Coast- Benicia and Wilmington
Refineries. (g)Average market reference prices for
Louisiana Light Sweet (LLS) crude oil, along with
price differentials between the price of LLS crude
oil and other types of crude oil, have been
included in the table of Average Market Reference
Prices and Differentials. The table also includes
price differentials by region between the prices of
certain products and the benchmark crude oil that
provides the best indicator of product margins for
each region. We previously provided feedstock
and product differentials based on the price of
West Texas Intermediate (WTI) crude oil. However,
the price of WTI crude oil no longer provides a
reasonable benchmark price of crude oil for all
regions. Beginning in late 2010, WTI
light-sweet crude oil began to price at a discount
to waterborne light-sweet crude oils, such as LLS
and Brent, because of increased WTI supplies
resulting from greater domestic production and
increased deliveries of crude oil from Canada into
the Mid-Continent region. Therefore, the use
of the price of WTI crude oil as a benchmark price
for regions that do not process WTI crude oil is no
longer reasonable.
HUG#1581206 SAN ANTONIO, January 17, 2012 - Valero Energy Corporation (NYSE: VLO) today announced that the company expects to report earnings per share in the range of $0.00 to $0.10 for the fourth quarter of 2011. Included in this estimate is an after-tax benefit of approximately $161 million, or $0.29 per share, from a year-end LIFO inventory decrement. The fourth quarter 2011 results were negatively impacted by weak margins on refined products, particularly for gasoline and petrochemical feedstocks. In addition, refining margins in the fourth quarter were negatively impacted by reduced discounts for heavy sour feedstocks and the narrowing of prices for West Texas Intermediate versus Brent crude oils, resulting in higher-priced crude oils flowing through the system. Despite the lower results expected for the fourth quarter, Valero expects to report its highest annual earnings per share since 2008 with full-year 2011 income from continuing operations per share in the range of $3.59 to $3.69, including the LIFO inventory benefit. In addition, the company updated the time of its fourth quarter 2011 earnings call to 9:00 a.m. CT on January 31, which is one hour earlier than the previously announced time on the same date. A live webcast of the discussion will be available in a listen-only mode on Valero's website at http://www.valero.com/.
About Valero
Safe-Harbor Statement
Contacts
HUG#1577923 |
distribué par | Ce noodl a été diffusé par Valero Energy Corporation et initialement mise en ligne sur le site http://www.valero.com. La version originale est disponible ici. Ce noodl a été distribué par noodls dans son format d'origine et sans modification sur 2012-01-31 15:00:19 PM et restera accessible depuis ce lien permanent. Cette annonce est protégée par les règles du droit d'auteur et toute autre loi applicable, et son propriétaire est seul responsable de sa véracité et de son originalité. |