Valero Posts Higher-Than-Expected Profit Despite Sharp Refining Margin Decline
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 24 2025
0mins
Source: Benzinga
Valero Energy Corporation's Financial Performance: Valero reported first-quarter sales of $30.26 billion, exceeding analyst expectations, but saw a decline in adjusted operating income across its refining and ethanol segments compared to the previous year. The Renewable Diesel segment experienced an operating loss of $141 million.
Stockholder Returns and Market Reaction: Despite the mixed financial results, Valero returned $633 million to stockholders through dividends and share repurchases, and announced an increase in its quarterly cash dividend. However, shares traded lower by 0.4% premarket following the report.
Analyst Views on VLO
Wall Street analysts forecast VLO stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for VLO is 186.56 USD with a low forecast of 149.00 USD and a high forecast of 223.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
17 Analyst Rating
11 Buy
6 Hold
0 Sell
Moderate Buy
Current: 186.890
Low
149.00
Averages
186.56
High
223.00
Current: 186.890
Low
149.00
Averages
186.56
High
223.00
About VLO
Valero Energy Corporation, through its subsidiaries, is a multinational manufacturer and marketer of petroleum-based and low-carbon liquid transportation fuels and petrochemical products. The Company sells its products primarily in the United States, Canada, the United Kingdom, Ireland and Latin America. Its segments include Refining, Renewable Diesel, and Ethanol. The Refining segment includes the operations of its petroleum refineries, the associated activities to market its refined petroleum products, and the logistics assets that support its refining operations. The Renewable Diesel segment represents the operations of Diamond Green Diesel (DGD), and the associated activities to market renewable diesel, renewable naphtha, and neat SAF. The Ethanol segment includes the operations of its ethanol plants and the associated activities to market its ethanol and co-products. It owns 15 petroleum refineries located in the United States, Canada and the United Kingdom.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
