Q4 2024 Valero Energy Corp Earnings Call Transcript
Key Points
- Valero Energy Corp (VLO) achieved record volumes in processing heavy sour crude, demonstrating refining system flexibility.
- The company set a record for ethanol production, aided by the expansion of the Charles City plant.
- Valero successfully started up the DGD sustainable aviation fuel project, which is now fully operational.
- The company maintained a strong shareholder return with a payout ratio of 78% for the year and increased its quarterly cash dividend by 6%.
- Valero's renewable diesel segment saw a significant increase in operating income, reaching $170 million in Q4 2024 compared to $84 million in Q4 2023.
- Valero Energy Corp (VLO) reported a significant decline in net income for Q4 2024, with $281 million compared to $1.2 billion in Q4 2023.
- The refining segment's operating income dropped to $437 million in Q4 2024 from $1.6 billion in Q4 2023.
- Ethanol segment operating income fell sharply to $20 million in Q4 2024 from $190 million in Q4 2023.
- The company faced a weak margin environment, impacting overall financial performance.
- Valero's refining cash operating expenses increased to $4.67 per barrel in Q4 2024.
Greetings, and welcome to Valero Energy Corp. fourth quarter 2024 earnings conference call. (Operator Instructions) As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Homer Bhullar, Vice President of Investor Relations and Finance. Thank you. You may begin.
Good morning, everyone, and welcome to Valero Energy Corporation's fourth quarter 2024 earnings conference call. With me today are Lane Riggs, our Chairman, CEO and President; Jason Fraser, our Executive Vice President and CFO, and Gary Simmons, our Executive Vice President and COO; and several other members of Valero's senior management team.
If you have not received the earnings release and would like a copy, you can find one on our website at investorvalero.com. Also attached to the earnings release are tables that provide additional financial information on our business segments and reconciliations and disclosures for adjusted financial metrics mentioned on this call.
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