Net Profit Margin
since 2005
Calculation
Valero Energy Corp., net profit margin, long-term trends, calculation
| Net profit margin | = | 100 | × | Net income (loss) attributable to Valero Energy Corporation stockholders1 | ÷ | Revenues1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2023 | 6.10% | = | 100 | × | 8,835) | ÷ | 144,766) |
| Dec 31, 2022 | 6.54% | = | 100 | × | 11,528) | ÷ | 176,383) |
| Dec 31, 2021 | 0.82% | = | 100 | × | 930) | ÷ | 113,977) |
| Dec 31, 2020 | -2.19% | = | 100 | × | (1,421) | ÷ | 64,912) |
| Dec 31, 2019 | 2.24% | = | 100 | × | 2,422) | ÷ | 108,324) |
| Dec 31, 2018 | 2.67% | = | 100 | × | 3,122) | ÷ | 117,033) |
| Dec 31, 2017 | 4.33% | = | 100 | × | 4,065) | ÷ | 93,980) |
| Dec 31, 2016 | 3.03% | = | 100 | × | 2,289) | ÷ | 75,659) |
| Dec 31, 2015 | 4.54% | = | 100 | × | 3,990) | ÷ | 87,804) |
| Dec 31, 2014 | 2.77% | = | 100 | × | 3,630) | ÷ | 130,844) |
| Dec 31, 2013 | 1.97% | = | 100 | × | 2,720) | ÷ | 138,074) |
| Dec 31, 2012 | 1.50% | = | 100 | × | 2,083) | ÷ | 139,250) |
| Dec 31, 2011 | 1.66% | = | 100 | × | 2,090) | ÷ | 125,987) |
| Dec 31, 2010 | 0.39% | = | 100 | × | 324) | ÷ | 82,233) |
| Dec 31, 2009 | -2.91% | = | 100 | × | (1,982) | ÷ | 68,144) |
| Dec 31, 2008 | -0.95% | = | 100 | × | (1,131) | ÷ | 119,114) |
| Dec 31, 2007 | 5.49% | = | 100 | × | 5,234) | ÷ | 95,327) |
| Dec 31, 2006 | 5.95% | = | 100 | × | 5,463) | ÷ | 91,833) |
| Dec 31, 2005 | 4.37% | = | 100 | × | 3,590) | ÷ | 82,162) |
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), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$ in millions
The net profit margin of Valero Energy Corporation exhibits substantial volatility over the analyzed period from 2005 to 2023, characterized by cyclical swings between profitability and net losses. This instability reflects the company's sensitivity to external market conditions, specifically fluctuations in crude oil prices and refining margins.
- Initial Performance and Financial Crisis Impact (2005–2009)
- The period began with relatively stable margins, peaking at 5.95% in 2006. However, a severe downturn occurred between 2008 and 2009, where the net profit margin transitioned from a positive 5.49% in 2007 to a low of -2.91% in 2009. This decline coincided with a significant contraction in net income, resulting in losses of US$1.13 billion and US$1.98 billion in those respective years.
- Recovery and Moderate Growth Phase (2010–2019)
- Following the 2009 trough, a recovery phase is observed starting in 2010, with margins returning to positive territory. Between 2010 and 2019, the net profit margin generally fluctuated within a range of 0.39% to 4.54%. A notable peak occurred in 2015 at 4.54%, supported by a net income of US$3.99 billion. Despite these fluctuations, the margin showed a gradual softening toward the end of the decade, descending to 2.24% by 2019.
- Pandemic Contraction and Recent Expansion (2020–2023)
- A sharp contraction occurred in 2020, with the net profit margin dropping to -2.19%, representing a net loss of US$1.42 billion. This negative trend was short-lived, as the company entered a period of record profitability. In 2022, the net profit margin reached its highest point in the entire dataset at 6.54%, driven by a surge in revenues to US$176.38 billion and a net income of US$11.53 billion. This high level of profitability was largely maintained into 2023, with a marginal decline to 6.10%.
In summary, the long-term trend demonstrates a capacity for recovery following extreme downturns. While the company experienced three distinct periods of negative margins (2008-2009 and 2020), the most recent biennium represents the strongest profit margin performance since 2006, indicating a significant increase in operational efficiency or favorable market pricing in the current cycle.
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Comparison to Competitors
Valero Energy Corp., net profit margin, long-term trends, comparison to competitors
| Valero Energy Corp. | Chevron Corp. | ConocoPhillips | ExxonMobil Holdings Corp. | |
|---|---|---|---|---|
| Dec 31, 2023 | 6.10% | 10.85% | 19.52% | 10.76% |
| Dec 31, 2022 | 6.54% | 15.05% | 23.80% | 13.98% |
| Dec 31, 2021 | 0.82% | 10.04% | 17.63% | 8.33% |
| Dec 31, 2020 | -2.19% | -5.87% | -14.38% | -12.57% |
| Dec 31, 2019 | 2.24% | 2.09% | 22.07% | 5.61% |
| Dec 31, 2018 | 2.67% | 9.33% | 17.18% | 7.46% |
| Dec 31, 2017 | 4.33% | 6.83% | -2.94% | 8.31% |
| Dec 31, 2016 | 3.03% | -0.45% | -15.26% | 3.59% |
| Dec 31, 2015 | 4.54% | 3.53% | -14.98% | 6.22% |
| Dec 31, 2014 | 2.77% | 9.60% | 13.08% | 8.25% |
| Dec 31, 2013 | 1.97% | 9.73% | 16.83% | 7.74% |
| Dec 31, 2012 | 1.50% | 11.35% | 14.54% | 9.90% |
| Dec 31, 2011 | 1.66% | 11.01% | 5.08% | 8.79% |
| Dec 31, 2010 | 0.39% | 9.60% | 6.00% | 8.23% |
| Dec 31, 2009 | -2.91% | 6.26% | 3.25% | 6.39% |
| Dec 31, 2008 | -0.95% | 9.03% | -7.06% | 9.84% |
| Dec 31, 2007 | 5.49% | 8.73% | 6.34% | 10.40% |
| Dec 31, 2006 | 5.95% | 8.36% | 8.47% | 10.81% |
| Dec 31, 2005 | 4.37% | 7.28% | 7.54% | 10.07% |
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), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Sector (Oil, Gas & Consumable Fuels)
Valero Energy Corp., net profit margin, long-term trends, comparison to sector (oil, gas & consumable fuels)
| Valero Energy Corp. | Oil, Gas & Consumable Fuels | |
|---|---|---|
| Dec 31, 2023 | 6.10% | 11.63% |
| Dec 31, 2022 | 6.54% | 15.41% |
| Dec 31, 2021 | 0.82% | 9.78% |
| Dec 31, 2020 | -2.19% | -10.51% |
| Dec 31, 2019 | 2.24% | 5.71% |
| Dec 31, 2018 | 2.67% | 8.83% |
| Dec 31, 2017 | 4.33% | 7.00% |
| Dec 31, 2016 | 3.03% | 1.06% |
| Dec 31, 2015 | 4.54% | 3.89% |
| Dec 31, 2014 | 2.77% | 9.06% |
| Dec 31, 2013 | 1.97% | 9.08% |
| Dec 31, 2012 | 1.50% | 10.72% |
| Dec 31, 2011 | 1.66% | 8.41% |
| Dec 31, 2010 | 0.39% | 8.03% |
| Dec 31, 2009 | -2.91% | 5.60% |
| Dec 31, 2008 | -0.95% | 5.40% |
| Dec 31, 2007 | 5.49% | 8.99% |
| Dec 31, 2006 | 5.95% | 9.57% |
| Dec 31, 2005 | 4.37% | 8.71% |
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), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Energy)
Valero Energy Corp., net profit margin, long-term trends, comparison to industry (energy)
| Valero Energy Corp. | Energy | |
|---|---|---|
| Dec 31, 2023 | 6.10% | 11.68% |
| Dec 31, 2022 | 6.54% | 15.29% |
| Dec 31, 2021 | 0.82% | 9.70% |
| Dec 31, 2020 | -2.19% | -13.06% |
| Dec 31, 2019 | 2.24% | 3.11% |
| Dec 31, 2018 | 2.67% | 8.68% |
| Dec 31, 2017 | 4.33% | 6.15% |
| Dec 31, 2016 | 3.03% | 0.54% |
| Dec 31, 2015 | 4.54% | 4.04% |
| Dec 31, 2014 | 2.77% | 9.21% |
| Dec 31, 2013 | 1.97% | 9.44% |
| Dec 31, 2012 | 1.50% | 10.84% |
| Dec 31, 2011 | 1.66% | 8.58% |
| Dec 31, 2010 | 0.39% | 8.29% |
| Dec 31, 2009 | -2.91% | 5.89% |
| Dec 31, 2008 | -0.95% | 5.80% |
| Dec 31, 2007 | 5.49% | 9.37% |
| Dec 31, 2006 | 5.95% | 9.82% |
| Dec 31, 2005 | 4.37% | 8.84% |
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), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).