Valero Energy Reports First Quarter 2011 Results

26.04.2011 | Business Wire

Valero Energy Reports First Quarter 2011 Results

Valero Energy Corporation (NYSE: VLO) today reported income from
continuing operations of $104 million, or $0.18 per share, for the first
quarter of 2011, compared to a loss from continuing operations of $80
million, or $0.14 per share, for the first quarter of 2010. Included in
the first quarter 2011 results was an after-tax loss of $352 million, or
$0.61 per share, on derivative contracts related to the forward sales of
refined products. These derivatives contracts were closed and realized
in the first quarter of 2011.

First quarter 2011 operating income was $244 million versus first
quarter 2010 operating income of $4 million. Excluding the pre-tax loss
of $542 million on the forward sales of refined products, first quarter
2011 operating income was $786 million and refining throughput margin
was $9.91 per barrel. The $782 million improvement in operating income
versus first quarter 2010 was mainly due to a $3.93-per-barrel increase
in refining throughput margins. The increase in throughput margins was
primarily due to higher margins for diesel and jet fuel plus wider
discounts for heavy-sour feedstocks on the Gulf Coast and light-sweet
crude oils in the Mid-Continent.

In addition, the company estimates its March 2011 results were impacted
by $116 million of lost income after taxes, or $0.20 per share, mainly
due to turnaround-maintenance delays at the refineries. The impact from
these issues was not captured in the earnings guidance issued by the
company on March 2.

'Clearly, the first quarter was a much better start to the year than
last year,? said Valero Chairman and CEO Bill Klesse. 'Our refining
system experienced strong margins and turned in solid results despite a
heavy maintenance schedule and associated restart delays. We also
announced the acquisition of Chevron′s Pembroke refinery, marketing, and
logistics assets in the United Kingdom and Ireland. These attractively
priced assets will improve the competitiveness of our asset portfolio
and should be immediately accretive to earnings upon closing in the
third quarter.?

Klesse continued, 'Refining industry margins and feedstock discounts in
our markets were very strong in the first quarter because of global
demand strength and production issues in foreign refineries. In
particular, our inland refineries benefited from processing WTI-type
crude oils, which have been pricing at a significant discount to
waterborne light-sweet crude oils such as LLS and Brent. Combined with
our heavy and sour crude oil processing capabilities, more than 80
percent of Valero′s refining capacity can process feedstocks that price
below waterborne light-sweet crude oils.?

Valero′s retail operating income was $66 million in the first quarter of
2011 versus $71 million in the first quarter of 2010. The slight decline
in operating income was mainly due to the narrowing of U.S. retail fuel
margins as pump prices failed to keep pace with rising crude oil prices,
while Canadian retail fuel margins increased on local demand strength.

Valero′s ethanol operating income was $44 million in the first quarter
of 2011 versus $57 million in the first quarter of 2010. The decrease in
operating income was mainly due to corn costs rising faster than ethanol
prices, squeezing gross margins from 63 cents per gallon in the first
quarter of 2010 to 50 cents per gallon in the first quarter of 2011.

Regarding cash flows in the first quarter of 2011, capital spending was
$737 million, of which $299 million was for turnaround and catalyst
expenditures. Also in the first quarter, the company paid $28 million in
dividends on its common stock and repaid $510 million in debt. Valero
ended the first quarter with $4.1 billion in cash and temporary cash
investments.

Commenting on the industry outlook, Klesse said, 'Although crude oil
prices have been over $100 per barrel, demand outside the U.S. and
Western Europe is resilient and growing. The rapid economic growth in
developing economies has been fueling the strength in refining margins
the past year, and we continue to see attractive opportunities to export
products from our Gulf Coast refineries. Benchmark margins and feedstock
discounts in the second quarter have increased from first quarter
levels, and prices in the forward markets over the past couple of months
have consistently implied very strong refining margins throughout 2011.?

'We expect a strong second quarter for Valero,? Klesse continued. 'With
our refineries coming back online from maintenance and operating at
higher rates, we expect to capture more of these outstanding margins and
wide discounts. In addition, we successfully completed key projects that
should enhance profitability, including replacement of the coke drums at
our Port Arthur refinery, and we are nearly complete with the revamp of
our cat-cracking unit at the St. Charles refinery.?

Klesse concluded, 'We are very excited about Valero′s growth prospects.
In addition to favorable industry conditions, we expect to add
significant earnings power via the Pembroke acquisition later this year
and our major growth projects that are on track for completion in 2012.
Those projects, particularly the hydrocrackers and hydrogen plants, are
ideal for this environment of high crude oil and low natural gas prices,
as well as growing global demand for diesel and gasoline. Besides the
successful execution of our growth plans, we remain focused on cost
savings, and, of course, safe, reliable, and regulatory-compliant
operations.?

Valero′s senior management will hold a conference call at 11:00 a.m. ET
(10 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

Valero Energy Corporation is an international manufacturer and marketer
of transportation fuels, other petrochemical products and power. Its
assets include 14 petroleum refineries with a combined throughput
capacity of approximately 2.6 million barrels per day, 10 ethanol plants
with a combined production capacity of 1.1 billion gallons per year, and
a 50-megawatt wind farm. Valero is also one of the largest retail
operators with approximately 5,800 retail and branded wholesale outlets
in the United States, Canada and the Caribbean under the Valero, Diamond
Shamrock, Shamrock, Ultramar and Beacon brands. Based in San Antonio,
Valero is a Fortune 500 company with approximately 20,000 employees.
Please visit www.valero.com
for more information.

Safe Harbor Statement

Statements contained in this release that state the Company′s or
management′s expectations or predictions of the future are
forward-looking statements intended to be covered by the safe harbor
provisions of the Securities Act of 1933 and the Securities Exchange Act
of 1934. The words 'believe,? 'expect,? 'should,? 'estimates,? and other
similar expressions identify forward-looking statements. It is important
to note that actual results could differ materially from those projected
in such forward-looking statements. For more information concerning
factors that could cause actual results to differ from those expressed
or forecasted, see Valero′s annual reports on Form 10-K and quarterly
reports on Form 10-Q, filed with the Securities and Exchange Commission,
and available on Valero′s website at www.valero.com.



VALERO ENERGY CORPORATION AND SUBSIDIARIES
EARNINGS RELEASE
(Millions of Dollars, Except per Share, per Barrel, and per Gallon Amounts)
(Unaudited)

	Three Months Ended
	March 31,
	2011			2010
STATEMENT OF INCOME DATA (a) (b) (c) :
Operating Revenues (1)	$	26,308		$	18,493
Costs and Expenses:
Cost of Sales (d) (e)	24,568			17,056
Operating Expenses:
Refining	744			764
Retail (d)	162			152
Ethanol	95			80
General and Administrative Expenses (f)	130			97
Depreciation and Amortization Expense	365			340
Total Costs and Expenses	26,064			18,489
Operating Income (e)	244			4
Other Income, Net	17			11
Interest and Debt Expense:
Incurred	(144		)	(147		)
Capitalized	27			20
Income (Loss) from Continuing Operations Before Income Tax Expense (Benefit)	144			(112		)
Income Tax Expense (Benefit)	40			(32		)
Income (Loss) from Continuing Operations	104			(80		)
Loss from Discontinued Operations, Net of Income Taxes	(6		)	(33		)
Net Income (Loss)	$	98		$	(113	)
Earnings (Loss) per Common Share:
Continuing Operations	$	0.18		$	(0.14	)
Discontinued Operations	(0.01		)	(0.06		)
Total	$	0.17		$	(0.20	)
Weighted Average Common Shares Outstanding (in millions)	566			562
Earnings (Loss) per Common Share ? Assuming Dilution:
Continuing Operations	$	0.18		$	(0.14	)
Discontinued Operations	(0.01		)	(0.06		)
Total	$	0.17		$	(0.20	)
Weighted Average Common Shares Outstanding ? Assuming Dilution (in millions) (g)	573			562
Supplemental Information:
(1) Includes excise taxes on sales by our U.S. retail system	$	214		$	208

	March 31,			December 31,
	2011			2010
BALANCE SHEET DATA:
Cash and Temporary Cash Investments	$	4,133		$	3,334
Total Debt	7,829			8,337



VALERO ENERGY CORPORATION AND SUBSIDIARIES
EARNINGS RELEASE
(Millions of Dollars, Except per Share, per Barrel, and per Gallon Amounts)
(Unaudited)

	Three Months Ended
	March 31,
	2011			2010
Operating Income (Loss) by Business Segment:
Refining (e)	$	276		$	(15	)
Retail	66			71
Ethanol	44			57
Total Before Corporate	386			113
Corporate	(142		)	(109		)
Total	$	244		$	4
Depreciation and Amortization by Business Segment:
Refining	$	316		$	294
Retail	28			26
Ethanol	9			8
Total Before Corporate	353			328
Corporate	12			12
Total	$	365		$	340
Operating Highlights:
Refining (a) (b) (e):
Throughput Margin per Barrel	$	7.05		$	5.98
Operating Costs per Barrel:
Operating Expenses	3.93			4.38
Depreciation and Amortization Expense	1.66			1.68
Total Operating Costs per Barrel	5.59			6.06
Operating Income (Loss) per Barrel	$	1.46		$	(0.08	)
Throughput Volumes (Mbbls per Day):
Feedstocks:
Heavy Sour Crude	372			440
Medium/Light Sour Crude	372			385
Acidic Sweet Crude	72			42
Sweet Crude	666			588
Residuals	249			137
Other Feedstocks	137			118
Total Feedstocks	1,868			1,710
Blendstocks and Other	238			230
Total Throughput Volumes	2,106			1,940
Yields (Mbbls per Day):
Gasolines and Blendstocks	956			967
Distillates	695			597
Other Products (h)	465			398
Total Yields	2,116			1,962



VALERO ENERGY CORPORATION AND SUBSIDIARIES
EARNINGS RELEASE
(Millions of Dollars, Except per Share, per Barrel, and per Gallon Amounts)
(Unaudited)

	Three Months Ended
	March 31,
	2011			2010
Refining Operating Highlights by Region (e) (i):
Gulf Coast:
Operating Income (Loss)	$	111		$	(11	)
Throughput Volumes (Mbbls per Day)	1,299			1,137
Throughput Margin per Barrel	$	6.45		$	6.08
Operating Costs per Barrel:
Operating Expenses	3.86			4.44
Depreciation and Amortization Expense	1.64			1.74
Total Operating Costs per Barrel	5.50			6.18
Operating Income (Loss) per Barrel	$	0.95		$	(0.10	)
Mid-Continent:
Operating Income (Loss)	$	167		$	(11	)
Throughput Volumes (Mbbls per Day)	403			363
Throughput Margin per Barrel	$	9.68		$	5.34
Operating Costs per Barrel:
Operating Expenses	3.65			4.07
Depreciation and Amortization Expense	1.44			1.60
Total Operating Costs per Barrel	5.09			5.67
Operating Income (Loss) per Barrel	$	4.59		$	(0.33	)
Northeast:
Operating Income	$	56		$	38
Throughput Volumes (Mbbls per Day)	209			178
Throughput Margin per Barrel	$	7.02		$	7.77
Operating Costs per Barrel:
Operating Expenses	2.81			3.73
Depreciation and Amortization Expense	1.20			1.66
Total Operating Costs per Barrel	4.01			5.39
Operating Income (Loss) per Barrel	$	3.01		$	2.38
West Coast:
Operating Loss	$	(58	)	$	(31	)
Throughput Volumes (Mbbls per Day)	195			262
Throughput Margin per Barrel	$	5.62		$	5.20
Operating Costs per Barrel:
Operating Expenses	6.15			4.97
Depreciation and Amortization Expense	2.81			1.54
Total Operating Costs per Barrel	8.96			6.51
Operating Loss per Barrel	$	(3.34	)	$	(1.31	)



VALERO ENERGY CORPORATION AND SUBSIDIARIES
EARNINGS RELEASE
(Millions of Dollars, Except per Share, per Barrel, and per Gallon Amounts)
(Unaudited)

	Three Months Ended
	March 31,
	2011			2010
Retail - U.S. (d):
Operating Income	$	19		$	33
Company-Operated Fuel Sites (Average)	993			989
Fuel Volumes (Gallons per Day per Site)	4,895			4,942
Fuel Margin per Gallon	$	0.076		$	0.108
Merchandise Sales	$	283		$	272
Merchandise Margin (Percentage of Sales)	28.3		%	28.2		%
Margin on Miscellaneous Sales	$	22		$	22
Operating Expenses	$	98		$	94
Depreciation and Amortization Expense	$	19		$	18

Retail - Canada (d):
Operating Income	$	47		$	38
Fuel Volumes (Thousand Gallons per Day)	3,234			3,078
Fuel Margin per Gallon	$	0.317		$	0.284
Merchandise Sales	$	57		$	52
Merchandise Margin (Percentage of Sales)	29.7		%	30.8		%
Margin on Miscellaneous Sales	$	11		$	10
Operating Expenses	$	64		$	58
Depreciation and Amortization Expense	$	9		$	8

Ethanol (c):
Operating Income	$	44		$	57
Production (Thousand Gallons per Day)	3,282			2,534
Gross Margin per Gallon of Production	$	0.50		$	0.63
Operating Costs per Gallon of Production:
Operating Expenses	0.32			0.35
Depreciation and Amortization Expense	0.03			0.03
Total Operating Costs per Gallon of Production	0.35			0.38
Operating Income per Gallon of Production	$	0.15		$	0.25



VALERO ENERGY CORPORATION AND SUBSIDIARIES
EARNINGS RELEASE
(Millions of Dollars, Except per Share, per Barrel, and per Gallon Amounts)
(Unaudited)

	Three Months Ended
	March 31,
	2011			2010
Average Market Reference Prices and Differentials (j):
Feedstocks (Dollars per Barrel):
Louisiana Light Sweet (LLS) Crude Oil	$	105.02		$	79.34
LLS Less West Texas Intermediate (WTI) Crude Oil	11.08			0.67
LLS Less Alaska North Slope (ANS) Crude Oil	3.78			0.79
LLS Less Brent Crude Oil	(0.39		)	3.06
LLS Less Mars Crude Oil	3.59			3.61
LLS Less Maya Crude Oil	15.68			9.57
WTI Crude Oil	$	93.94		$	78.67
WTI Less Mars Crude Oil	(7.49		)	2.94
WTI Less Maya Crude Oil	4.60			8.90
Products (Dollars per Barrel):
U.S. Gulf Coast:
Conventional 87 Gasoline Less LLS	$	3.82		$	6.46
Ultra-Low-Sulfur Diesel Less LLS	13.59			6.83
Propylene Less LLS	19.50			16.94
Conventional 87 Gasoline Less WTI	14.90			7.13
Ultra-Low-Sulfur Diesel Less WTI	24.67			7.49
Propylene Less WTI	30.58			17.61
U.S. Mid-Continent:
Conventional 87 Gasoline Less WTI	$	15.89		$	6.71
Ultra-Low-Sulfur Diesel Less WTI	25.10			6.70
U.S. Northeast:
Conventional 87 Gasoline Less Brent	$	3.94		$	10.28
Ultra-Low-Sulfur Diesel Less Brent	15.04			11.35
Conventional 87 Gasoline Less WTI	15.42			7.88
Ultra-Low-Sulfur Diesel Less WTI	26.52			8.95
U.S. West Coast:
CARBOB 87 Gasoline Less ANS	$	15.36		$	10.70
CARB Diesel Less ANS	20.70			8.55
CARBOB 87 Gasoline Less WTI	22.66			10.58
CARB Diesel Less WTI	28.00			8.43
New York Harbor Corn Crush (Dollars per Gallon)	$	0.08		$	0.45

VALERO ENERGY CORPORATION AND SUBSIDIARIES

EARNINGS
RELEASE

(Millions of Dollars, Except per Share, per Barrel,
and per Gallon Amounts)

(Unaudited)

(a) On December 17, 2010, Valero sold its refinery in Paulsboro, New
Jersey, and associated inventory to PBF Holding Company LLC for $707
million in proceeds, of which $160 million consisted of a short-term
note, resulting in a loss on the sale of $980 million ($610 million
after taxes). The results of operations of the refinery for the three
months ended March 31, 2010 are reflected in discontinued operations. In
addition, the refining segment and Northeast Region operating highlights
for the three months ended March 31, 2010 exclude the Paulsboro Refinery.

(b) During the fourth quarter of 2009, Valero permanently shut down its
refinery in Delaware City, Delaware, and wrote down the book value of
the refinery assets to net realizable value, resulting in a loss on the
shutdown of $1.9 billion ($1.2 billion after taxes). On June 1, 2010,
Valero sold the shutdown refinery assets and associated terminal and
pipeline assets to PBF Energy Partners LP (an entity related to the
buyer of the Paulsboro Refinery) for $220 million in cash proceeds,
resulting in a gain on the sale of the refinery assets of $92 million
($58 million after taxes) and an insignificant gain on the sale of the
terminal and pipeline assets. The results of operations of the shutdown
refinery for the three months ended March 31, 2010 are reflected in
discontinued operations. In addition, the refining segment and Northeast
Region operating highlights for the three months ended March 31, 2010
exclude the Delaware City Refinery. The terminal and pipeline assets
associated with the refinery were not shut down in 2009 and continued to
be operated until the date of their sale, and the results of operations
of those assets for the three months ended March 31, 2010 are reflected
in continuing operations.

(c) Valero acquired three ethanol plants in the first quarter of 2010.
The Statement of Income Data includes the results of operations of those
plants commencing on their respective acquisition dates. Two plants were
acquired from ASA Ethanol Holdings, LLC and the third plant was acquired
from Renew Energy LLC. Ethanol production volumes reflected herein are
based on total production during each period divided by actual calendar
days per period.

(d) Credit card transaction processing fees incurred by Valero's Retail
business segment of $21 million for the three months ended March 31,
2010 were reclassified from Retail operating expenses to cost of sales.
In addition, the Retail-U.S. and Retail-Canada operating highlights for
the three months ended March 31, 2010 have been restated to reflect this
reclassification.

(e) Cost of sales for the three months ended March 31, 2011 includes a
loss of $542 million ($352 million after tax) on derivative contracts
related to the forward sales of refined product. These contracts were
closed and realized during the first quarter of 2011. The $542 million
loss is reflected in refining segment operating income, resulting in a
$2.86 reduction in refining throughput margin per barrel for the three
months ended March 31, 2011, and is allocated to refining operating
income (loss) by region, excluding Northeast, based on relative
throughput volumes for each region as follows: Gulf Coast- $372
million, or $3.18 per barrel; Mid-Continent- $122 million, or
$3.36 per barrel; and West Coast- $48 million, or $2.71 per
barrel.

(f) General and administrative expenses for the three months ended March
31, 2010 includes the recognition of a favorable settlement with one of
Valero's third-party insurers for $40 million. The settlement relates to
Valero's claim of insurance coverage in connection with losses incurred
in prior periods.

(g) Common equivalent shares have been excluded from the computation of
diluted loss per common share for the three months ended March 31, 2010
as the effect of including such shares would be antidilutive.

(h) Primarily includes petrochemicals, gas oils, No. 6 fuel oil,
petroleum coke, and asphalt.

(i) The regions reflected herein contain the following refineries: Gulf
Coast- Corpus Christi East, Corpus Christi West, Texas City,
Houston, Three Rivers, St. Charles, Aruba, and Port Arthur Refineries; Mid-Continent-
McKee, Ardmore, and Memphis Refineries; Northeast- Quebec City;
and West Coast- Benicia and Wilmington Refineries.

(j) 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. Prior to the first quarter of 2011,
feedstock and product differentials presented herein were 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.

Valero Energy Corporation, San Antonio

Investors, Ashley Smith,
Vice President,

Investor Relations: 210-345-2744

or

Media,
Bill Day, Executive Director, Corporate Communications:

210-345-2928

Website:
http://www.valero.com/

Bewerten 0 0

A A A


	Die mit * gekennzeichneten Felder sind Pflichtfelder.
Absender*
E-Mail-Adresse Empfänger*
Betreff*
Nachricht*	Hier ist eine interessante Information, die ich auf Rohstoff-Welt.de gefunden habe: https://www.rohstoff-welt.de/news/103075--Valero-Energy-Reports-First-Quarter-2011-Results.html

	Alle hinterlegten Daten der "Nachricht versenden"-Funktion werden ausschlißlich zu Übertragungszwecken verwendet und nicht gespeichert.
Zustimmung*	Mit Setzen des Häkchens im Kontrollkästchen bestätigen Sie uns, dass Sie unsere Datenschutzerklärung zur Kenntnis genommen haben und dass Sie unseren Allgemeinen Geschäftsbedingungen (AGB) zustimmen. Sie erklären sich damit einverstanden, dass Ihre Daten zur Bearbeitung Ihres Anliegens verwendet werden. Weitere Informationen und Widerrufshinweise finden Sie in der Datenschutzerklärung u. a. im Punkt "Informationsangebote".
BestÃ¤tigungscode*	Zum neu Laden auf das Bild klicken. Geben Sie die Zeichen aus dem Bild einEs wird nicht zwischen GroÃŸ und Kleinschreibung unterschieden

PDF Versenden Drucken

Für den Inhalt des Beitrages ist allein der Autor verantwortlich bzw. die aufgeführte Quelle. Bild- oder Filmrechte liegen beim Autor/Quelle bzw. bei der vom ihm benannten Quelle. Bei Übersetzungen können Fehler nicht ausgeschlossen werden. Der vertretene Standpunkt eines Autors spiegelt generell nicht die Meinung des Webseiten-Betreibers wieder. Mittels der Veröffentlichung will dieser lediglich ein pluralistisches Meinungsbild darstellen. Direkte oder indirekte Aussagen in einem Beitrag stellen keinerlei Aufforderung zum Kauf-/Verkauf von Wertpapieren dar. Wir wehren uns gegen jede Form von Hass, Diskriminierung und Verletzung der Menschenwürde. Beachten Sie bitte auch unsere AGB/Disclaimer!

Weiteres aus der Rubrik: Meldungen, engl.