Valero Energy (VLO) Q4 2024 earnings summary

Executive summary

• Achieved record personnel and process safety, strong environmental performance, and operational excellence in 2024 despite weak margins.

• Net income attributable to stockholders was $281 million ($0.88/share) for Q4 2024 and $2.8 billion ($8.58/share) for the year, both down sharply year-over-year.

• Returned $601 million to stockholders in Q4 and $4.3 billion for the year via dividends and buybacks; board approved a 6% increase in quarterly cash dividend to $1.13/share effective January 2025.

• Successfully started up the DGD Sustainable Aviation Fuel Project, now fully operational.

• FCC/coker optimization project at St. Charles Refinery underway, $230 million investment, startup expected in 2026.

Financial highlights

• Q4 2024 net income attributable to stockholders was $281 million ($0.88/share), down from $1.2 billion ($3.55/share) in Q4 2023.

• Adjusted Q4 2024 net income was $207 million ($0.64/share), compared to $1.2 billion ($3.57/share) in Q4 2023.

• Full-year 2024 net income was $2.8 billion ($8.58/share), down from $8.8 billion ($24.92/share) in 2023.

• Q4 2024 revenues were $30.8 billion, down from $35.4 billion in Q4 2023; full-year revenues were $129.9 billion, down from $144.8 billion in 2023.

• Net cash provided by operating activities was $1.1 billion in Q4 2024 and $6.7 billion for the year.

Outlook and guidance

• Expect refining margins to be supported by low product inventories ahead of the driving season.

• Long-term product demand expected to exceed supply due to refinery shutdowns and limited capacity additions.

• 2025 capital investments projected at $2 billion, with $1.6 billion for sustaining and the rest for growth.

• Q1 2025 refining throughput guidance: Gulf Coast 1.72–1.77M bpd, Midcontinent 415–435K bpd, West Coast 190–210K bpd, North Atlantic 455–475K bpd.

• Renewable diesel sales volumes expected at $1.2 billion in 2025; ethanol production at 4.6M gallons/day in Q1.