Valero Delivers $1.3B Q1 Profit, Boosts Dividend by 6%
Valero Energy posted Q1 net income of $1.3B ($4.22/share) versus a $595M loss a year earlier, driven by core refining operating income of $1.8B up from a $530M loss. Throughput averaged 2.9M barrels per day, renewable diesel profit reached $139M, and $938M returned via dividends and buybacks.
1. Strong Q1 Rebound
Valero reported Q1 net income of $1.3B ($4.22 per share) versus a $595M loss in Q1 2025, driven by core refining operating income of $1.8B up from a $530M loss. Throughput averaged 2.9M barrels per day, reflecting capacity optimization and favorable distillate margins.
2. Renewables and Shareholder Returns
Renewable diesel operating profit swung to $139M and ethanol income rose to $90M, supported by higher production volumes and margin improvements. Operating cash flow reached $1.4B, enabling $938M in dividends and share buybacks and a 6% dividend increase to $1.20 per share.
3. Balance Sheet and Growth Projects
Valero issued $850M in senior notes and held $5.7B in cash, maintaining an 18% net debt-to-capital ratio. A $230M FCC optimization project at the St. Charles refinery is slated for Q3 startup to boost higher-value product yields.