Name: Valero Energy Corp. (NYSE:VLO) | Analysis of Revenues
Creator: Stock Analysis on Net

Analysis of Revenues

Revenues as Reported

Revenues as Reported

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Valero Energy Corp., income statement, revenues

US$ in millions

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Gasolines and blendstocks	61,538)	70,496)	49,534)	26,278)	42,798)
Distillates	63,664)	82,521)	45,939)	28,234)	51,942)
Other product revenues	11,268)	15,137)	11,474)	6,328)	9,006)
Refining revenues	136,470)	168,154)	106,947)	60,840)	103,746)
Renewable diesel	3,665)	3,333)	1,874)	1,055)	970)
Renewable naphtha	158)	150)	—)	—)	—)
Renewable Diesel revenues	3,823)	3,483)	1,874)	1,055)	970)
Ethanol	3,300)	3,653)	4,122)	2,353)	2,889)
Distillers grains	1,173)	1,093)	1,034)	664)	717)
Ethanol revenues	4,473)	4,746)	5,156)	3,017)	3,606)
Corporate, other revenues	—)	—)	—)	—)	2)
Revenues	144,766)	176,383)	113,977)	64,912)	108,324)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Total revenues exhibited significant volatility between 2019 and 2023, characterized by a sharp contraction in 2020 followed by a substantial recovery and a peak in 2022. After reaching a high of 176,383 million US dollars in 2022, total revenues corrected to 144,766 million US dollars by the end of 2023, while remaining well above 2019 levels.

Total Revenue Volatility: A substantial decline in total revenues is observed from 2019 to 2020, dropping from 108,324 million US dollars to 64,912 million US dollars. This was followed by a period of aggressive growth, with revenues expanding by approximately 76% between 2020 and 2022. The 2023 figure represents a moderate retraction, reflecting a stabilization of market conditions following the 2022 peak.
Refining Segment Performance: Refining revenues serve as the primary driver of total income, mirroring the overall volatility of the corporate portfolio. Distillates and gasolines emerged as the dominant revenue streams, with distillates consistently providing a larger contribution in the latter half of the period. Distillate revenues peaked at 82,521 million US dollars in 2022, while gasoline and blendstocks reached a maximum of 70,496 million US dollars in the same year. Both product categories experienced a contraction in 2023, aligning with the overall downward trend in refining revenues from the previous year's high.
Renewable Diesel Expansion: Unlike the volatile refining segment, renewable diesel revenues demonstrate a consistent and linear upward trajectory. Revenues in this category grew from 970 million US dollars in 2019 to 3,823 million US dollars in 2023. This represents a steady expansion of the renewable energy footprint, with significant acceleration observed between 2021 and 2022, where revenues nearly doubled.
Ethanol and Biofuel Diversification: Ethanol revenues remained relatively stable compared to fossil fuel products, peaking in 2021 at 5,156 million US dollars before settling at 4,473 million US dollars in 2023. Distillers grains exhibited a gradual increase over the five-year period, rising from 717 million US dollars in 2019 to 1,173 million US dollars in 2023, indicating a steady growth in the monetization of ethanol by-products.

The overall revenue profile indicates a heavy reliance on traditional refining margins, which are subject to high market volatility, contrasted by a strategic and successful scaling of the renewable diesel business, which provides a more stable growth vector for the organization.

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