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SAN ANTONIO - Valero Energy Corporation (NYSE:VLO) reported better-than-expected fourth quarter results on Thursday, though profits declined significantly from a year ago as refining margins contracted.
Valero shares slipped 1.06% in early trading following the earnings release as investors reacted to the year-over-year profit decline despite the earnings beat.
The oil refiner posted adjusted earnings per share of $0.64, surpassing analyst estimates of $0.43. Revenue came in at $30.76 billion, also topping expectations of $30.36 billion.
However, Valero’s fourth quarter profit of $281 million, or $0.88 per share, was down sharply from $1.2 billion, or $3.55 per share, in the same period last year. The company’s refining margin fell to $2.33 billion from $3.55 billion a year ago.
"2024 was our best year for personnel and process safety and one of our best years for environmental performance," said Lane Riggs, Valero’s Chairman, CEO and President. "This is a testament to our long-standing commitment to safe, reliable and environmentally responsible operations."
Valero returned $601 million to shareholders through dividends and stock buybacks in the fourth quarter. For the full year 2024, the company returned $4.3 billion to shareholders.
The company also announced a 6% increase to its quarterly dividend to $1.13 per share.
The stock movement suggests a slightly negative response from the market to the overall results.
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