Yahoo Finance Valero’s 1Q16 Results: Refining Earnings Plunged
Valero Energy’s Stock Fell on Its 1Q16 Earnings Miss
Valero’s 1Q16: Estimated and actual performance
Valero Energy (VLO) posted its 1Q16 results on May 3, 2016. Before we proceed with the earnings review, let’s quickly examine VLO’s 1Q16 performance versus estimates.
In 1Q16, VLO’s revenue missed Wall Street analysts’ consensus estimate by 2.1%. Additionally, its adjusted EPS (earnings per share) stood at $0.60, 8.7% lower than its estimated EPS of $0.66 and 68% lower than its 1Q15 adjusted EPS. VLO’s refining margins also fell in 1Q16.
Valero’s 1Q16 earnings
In 1Q16, VLO’s adjusted net income fell by 71% to $283 million compared to 1Q15. This was due to falls in the adjusted operating incomes of its refining segment and its ethanol segment.
VLO’s refining margin contracted by $4.4 per barrel from 1Q15 to $8 per barrel in 1Q16. This was due to a fall in diesel cracks across its operating areas. Plus, the adjusted operating income from VLO’s ethanol segment fell to $9 million in 1Q16 due to plunging ethanol margins.
VLO’s peers Marathon Petroleum (MPC), Western Refining (WNR), and Phillips 66 (PSX) saw their adjusted EPS fall 96%, 89%, and 56%, respectively, in 1Q16 compared to 1Q15. PBF Energy (PBF) also posted a fall in 1Q16.
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