Valero Energy's $8.8 Billion Net Income in 2023

Valero Energy Corporation has recently released its 10-K report, providing a comprehensive overview of its business operations. The company primarily operates in the manufacturing, marketing, and sale of transportation fuels and petrochemical products in various regions, including the United States, Canada, the United Kingdom, Ireland, Latin America, and internationally. Valero Energy operates through three segments: Refining, Renewable Diesel, and Ethanol, and also owns and operates crude oil and refined petroleum products pipelines, terminals, tanks, marine docks, and other logistics assets.

In its annual report for the year ended December 31, 2023, Valero Energy reported $8.8 billion in net income attributable to Valero stockholders, which was favorably impacted by the continued strong worldwide demand for petroleum-based transportation fuels. The company highlighted the global supply and demand imbalance, which contributed to strong refining margins for the year. The report also discussed the various financial metrics, including adjusted operating income, Refining, Renewable Diesel, and Ethanol segment margins, and capital investments attributable to Valero.

The company's forward-looking statements included expectations regarding future segment margins, feedstock costs, production levels, capital investments, and liquidity. Valero Energy cautioned that these forward-looking statements are not guarantees of future performance and may be affected by factors such as geopolitical conflicts, demand and supplies of refined petroleum products and feedstocks, environmental regulations, economic conditions, and other risks and uncertainties.

It's important to note that the company's discussions in the report include references to non-GAAP financial measures, such as adjusted operating income and segment margins, which are used to facilitate the comparison of operating results between years and to assess cash flows. Valero Energy provided reconciliations of these non-GAAP financial measures to their most directly comparable GAAP financial measures and disclosed the reasons for using such non-GAAP financial measures.

Overall, the 10-K report provides a detailed insight into Valero Energy's financial performance, business operations, and outlook, while also highlighting the potential risks and challenges the company may face in the future. Today the company's shares have moved 1.9% to a price of $139.81. For more information, read the company's full 10-K submission here.

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