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Valero Posts Higher-Than-Expected Profit Despite Sharp Refining Margin Decline
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Valero Energy Corporation (NYSE:VLO) shares are trading lower premarket on Thursday after the company reported a first-quarter sales of $30.26 billion, beating the analyst consensus estimate of $28.68 billion.

The Refining segment posted an adjusted operating income of $605 million, compared to $1.8 billion in the prior year quarter. During this quarter, refining throughput volumes averaged 2.8 million barrels per day.

Adjusted operating income from the Ethanol segment stood at $20 million, down from $39 million in the first quarter of 2024. Production volumes averaged 4.5 million gallons per day in the quarter.

The Renewable Diesel segment recorded an operating loss of $141 million vs. operating income of $190 million in the prior year quarter. Segment sales volumes averaged 2.4 million gallons per day during the quarter.

Adjusted EPS of $0.89 beat the consensus estimate of $0.42.

Valero returned $633 million to stockholders, comprising $356 million in dividends and $277 million worth of share repurchases.

Valero ended the quarter with $8.5 billion of total debt and $4.6 billion of cash and cash equivalents.

On January 16, 2025, Valero announced an increase in its quarterly cash dividend on common stock from $1.07 to $1.13 per share.

Investors can gain exposure to the stock via VanEck Oil Refiners ETF (NYSE:CRAK) and Invesco Energy Exploration & Production ETF (NYSE:PXE).

Price Action: VLO shares are trading lower by 0.4% at $114.00 premarket at last check Thursday.

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