- Valero Energy Corporation (VLO, Financial) posts a net loss of $595 million for Q1 2025, translating to $1.90 per share, due to asset impairment losses.
- Adjusted net income was reported at $282 million or $0.89 per share, excluding a significant pre-tax asset impairment loss.
- Valero returned $633 million to shareholders through dividends and stock buybacks in Q1 2025.
Valero Energy Corporation (VLO) has announced its financial results for the first quarter of 2025, revealing a net loss attributable to stockholders of $595 million, or $1.90 per share. This represents a significant downturn from the prior year's Q1 net income of $1.2 billion, or $3.75 per share. The loss was primarily driven by a pre-tax asset impairment loss of $1.1 billion related to the company's West Coast assets.
Excluding the asset impairment, Valero's adjusted net income was $282 million, or $0.89 per share, marking a decrease from $1.3 billion, or $3.84 per share, in the first quarter of 2024. The company faced challenges due to heavy maintenance across its refining system and a tough market environment in its Renewable Diesel segment.
The Refining segment recorded an operating loss of $530 million for the quarter, contrasting sharply with the $1.7 billion operating income reported in Q1 2024. Adjusted operating income for this segment stood at $605 million. Refining throughput volumes averaged 2.8 million barrels per day during the quarter.
Valero's Renewable Diesel segment, managed under the Diamond Green Diesel joint venture, reported an operating loss of $141 million, down from a $190 million operating income in Q1 2024, with sales volumes averaging 2.4 million gallons per day.
In contrast, the Ethanol segment reported a positive operating income of $20 million for Q1 2025, an increase from $10 million in the previous year, with production volumes averaging 4.5 million gallons per day.
Valero's financial position was bolstered by issuing $650 million in Senior Notes due 2030, aimed at debt repayment and general corporate purposes. The company repaid $189 million of 3.65% Senior Notes in March and $251 million of 2.85% Senior Notes in April. Despite these challenges, Valero returned $633 million to shareholders through dividends and stock buybacks during the quarter.
Valero continues to focus on operational excellence, capital deployment, and shareholder returns, underpinned by a robust balance sheet, providing operational and financial flexibility. The company maintains a debt to capitalization ratio, net of cash and cash equivalents, at 19% as of March 31, 2025.
