Valero Energy Corporation Provides Guidance on First Quarter 2021 Results
April 08 2021 - 7:55AM
Business Wire
Valero Energy Corporation (NYSE:VLO) is providing preliminary
estimated ranges for certain financial information reflecting
market and operating conditions experienced during the first
quarter of 2021. Valero expects to report a net loss attributable
to Valero stockholders in the range of $2.05 to $1.81 per share for
the first quarter of 2021. The company expects electricity and
natural gas costs incurred primarily by its refining and ethanol
business segments to be higher than expected for the first quarter
of 2021 due to the impacts of Winter Storm Uri. The preliminary
estimated impact of excess energy costs included in the range of
net loss attributable to Valero stockholders noted above is $1.18
to $1.14 per share. These estimated excess energy costs are
reflected in the table below.
The company will host a conference call on April 22, 2021 at
10:00 a.m. ET to discuss first quarter 2021 earnings results, which
will be released earlier that day, and provide an update on company
operations and guidance for 2021.
Preliminary Estimated First Quarter of 2021 Financial
Information
Although our financial statements for the first quarter of 2021
are not yet complete, certain preliminary estimated financial
information is available. Based on such preliminary estimated
financial information, we estimate the following ranges of
financial information:
FINANCIAL HIGHLIGHTS (millions of dollars, except per
share amounts) (unaudited) Renewable
Refining (a) Diesel Ethanol Total
Low High Low High Low
High Low High Preliminary estimated
statement of income data Net loss attributable to Valero Energy
Corporation stockholders
$
(835
)
$
(735
)
Loss per common share - assuming dilution
$
(2.05
)
$
(1.81
)
Preliminary estimated impact of estimated excess energy
costs Amount reflected in cost of materials and other
$
(65
)
$
(60
)
$
-
$
-
$
-
$
-
$
(65
)
$
(60
)
Amount reflected in operating expenses (excluding depreciation and
amortization expense reflected below)
(470
)
(460
)
-
-
(60
)
(55
)
(530
)
(515
)
Total impact on operating income (a)
$
(535
)
$
(520
)
$
-
$
-
$
(60
)
$
(55
)
$
(595
)
$
(575
)
Impact of estimated excess energy costs included in loss per
common share - assuming dilution
$
(1.18
)
$
(1.14
)
(a) The estimated excess energy costs impacted the operating
income of the refining segment regions as follows: U.S. Gulf Coast
region
$
(485
)
$
(475
)
U.S. Mid-Continent region
(45
)
(40
)
Other
(5
)
(5
)
Total
$
(535
)
$
(520
)
The preliminary estimated information set forth above does not
represent a comprehensive statement of income for the first quarter
of 2021. The final statement of our income for the first quarter of
2021 may vary from our current expectations and may be different
from the information described above as our quarterly financial
statement close process is not yet complete and additional
developments and adjustments may arise between now and the time the
financial information for this period is finalized. In addition,
these preliminary estimates are not necessarily indicative of the
results to be achieved for the remainder of 2021 or in any future
period. There can be no assurance that these estimates will be
realized, and estimates are subject to risks and uncertainties,
many of which are not within our control. Accordingly, you should
not place undue reliance on the preliminary estimated financial
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,” “intend,” “target,” “will,” “plans,” “forecast,” 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 based on
numerous factors, including those outside of the company’s control,
such as delays in construction timing and other factors, including
but not limited to the impacts of severe weather and COVID-19. 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, quarterly reports on Form 10-Q, and other
reports filed with the Securities and Exchange Commission and
available on Valero’s website at www.valero.com.
About Valero
Valero Energy Corporation, through its subsidiaries
(collectively, “Valero”), is an international manufacturer and
marketer of transportation fuels and petrochemical products. Valero
is a Fortune 50 company based in San Antonio, Texas, and it
operates 15 petroleum refineries with a combined throughput
capacity of approximately 3.2 million barrels per day and 13
ethanol plants with a combined production capacity of approximately
1.69 billion gallons per year. The petroleum refineries are located
in the United States (U.S.), Canada and the United Kingdom (U.K.),
and the ethanol plants are located in the Mid-Continent region of
the U.S. Valero is also a joint venture partner in Diamond Green
Diesel, which owns and operates a renewable diesel plant in Norco,
Louisiana. Diamond Green Diesel is North America’s largest
biomass-based diesel plant. Valero sells its products in the
wholesale rack or bulk markets in the U.S., Canada, the U.K.,
Ireland and Latin America. Approximately 7,000 outlets carry
Valero’s brand names. Please visit www.investorvalero.com for more
information.
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version on businesswire.com: https://www.businesswire.com/news/home/20210408005488/en/
Valero Contacts Investors: Homer Bhullar, Vice President
– Investor Relations, 210-345-1982 Eric Herbort, Senior Manager –
Investor Relations, 210-345-3331 Gautam Srivastava, Senior Manager
– Investor Relations, 210-345-3992 Media: Lillian Riojas, Executive
Director – Media Relations and Communications, 210-345-5002
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