Oil and gas company Valero Energy Corporation (VLO) continued its business momentum, as evidenced by its solid results for the third quarter of fiscal 2022. The company’s revenues increased…
50.6% year-over-year, while net income attributable to VLO stockholders grew 508.4%.
Joe Gorder, VLO’s Chairman, and CEO, said, “Refining fundamentals remain strong as product demand through our system has surpassed 2019 levels, while global product supply remains constrained due to capacity reductions and high natural gas prices in Europe are setting a higher floor on margins.”
Moreover, the company’s strong balance sheet remains the cornerstone of its capital allocation framework. On September 26, VLO announced that it had reduced its debt by approximately $1.25 billion through its previously announced tender offers for various senior notes. The company also declared a collective debt reduction of about $3.60 billion through transactions in the second half of 2021 and the first half of 2022.
Furthermore, tight supply and sustained energy demand are expected to keep energy prices high through 2023, boosting VLO’s earnings and profit margins. The European Union is preparing to implement an oil import embargo on Russian crude oil next month and fuels two months later. According to OPEC, the EU embargo might create “additional energy-supply disruptions.”
At the same time…
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