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Business Wire
24-07-2025
- Business
- Business Wire
Valero Energy Reports Second Quarter 2025 Results
SAN ANTONIO--(BUSINESS WIRE)--Valero Energy Corporation (NYSE: VLO, 'Valero') today reported net income attributable to Valero stockholders of $714 million, or $2.28 per share, for the second quarter of 2025, compared to net income of $880 million, or $2.71 per share, for the second quarter of 2024. Refining The Refining segment reported operating income of $1.3 billion for the second quarter of 2025, compared to operating income of $1.2 billion for the second quarter of 2024. Refining throughput volumes averaged 2.9 million barrels per day in the second quarter of 2025. 'We delivered solid financial results for the second quarter, driven by our strong operational and commercial execution,' said Lane Riggs, Valero's Chairman, Chief Executive Officer and President. 'In fact, we set a record for refining throughput rate in our U.S. Gulf Coast region in the second quarter, demonstrating the benefits of our investments in growth and optimization projects.' Renewable Diesel The Renewable Diesel segment, which consists of the Diamond Green Diesel joint venture (DGD), reported an operating loss of $79 million for the second quarter of 2025, compared to operating income of $112 million for the second quarter of 2024. Segment sales volumes averaged 2.7 million gallons per day in the second quarter of 2025. Ethanol The Ethanol segment reported $54 million of operating income for the second quarter of 2025, compared to $105 million for the second quarter of 2024. Ethanol production volumes averaged 4.6 million gallons per day in the second quarter of 2025. Corporate and Other General and administrative expenses were $220 million in the second quarter of 2025, compared to $203 million in the second quarter of 2024. The effective tax rate for the second quarter of 2025 was 30 percent. Investing and Financing Activities Net cash provided by operating activities was $936 million in the second quarter of 2025. Included in this amount was a $325 million unfavorable impact from working capital and $86 million of adjusted net cash used in operating activities associated with the other joint venture member's share of DGD. Excluding these items, adjusted net cash provided by operating activities was $1.3 billion in the second quarter of 2025. Capital investments totaled $407 million in the second quarter of 2025, of which $371 million was for sustaining the business, including costs for turnarounds, catalysts and regulatory compliance. Excluding capital investments attributable to the other joint venture member's share of DGD and other variable interest entities, capital investments attributable to Valero were $399 million in the second quarter of 2025. Valero returned $695 million to stockholders in the second quarter of 2025, of which $354 million was paid as dividends and $341 million was for the purchase of approximately 2.6 million shares of common stock, resulting in a payout ratio of 52 percent of adjusted net cash provided by operating activities. On July 17, Valero announced a quarterly cash dividend on common stock of $1.13 per share, payable on September 2, 2025 to holders of record at the close of business on July 31, 2025. 'We remain committed to maintaining our track record of commercial and operational excellence, which has been a hallmark of Valero's strategy for over a decade,' said Riggs. 'Our commitment remains underpinned by a strong balance sheet that also provides us plenty of financial flexibility.' Liquidity and Financial Position Valero repaid the $251 million outstanding principal balance of its 2.85% Senior Notes that matured in April, ending the second quarter of 2025 with $8.4 billion of total debt, $2.3 billion of total finance lease obligations, and $4.5 billion of cash and cash equivalents. The debt to capitalization ratio, net of cash and cash equivalents, was 19 percent as of June 30, 2025. Strategic Update Valero is progressing with an FCC Unit optimization project at the St. Charles Refinery that will enable the refinery to increase the yield of high value products. The project is estimated to cost $230 million and is expected to be completed in 2026. Conference Call Valero's senior management will hold a conference call at 10 a.m. ET today to discuss this earnings release and to provide an update on operations and strategy. About Valero Valero Energy Corporation, through its subsidiaries (collectively, Valero), is a multinational manufacturer and marketer of petroleum-based and low-carbon liquid transportation fuels and petrochemical products, and sells its products primarily in the United States (U.S.), Canada, the United Kingdom (U.K.), Ireland and Latin America. Valero owns 15 petroleum refineries located in the U.S., Canada and the U.K. with a combined throughput capacity of approximately 3.2 million barrels per day. Valero is a joint venture member in Diamond Green Diesel Holdings LLC, which produces low-carbon fuels including renewable diesel and sustainable aviation fuel (SAF), with a production capacity of approximately 1.2 billion gallons per year in the U.S. Gulf Coast region. See the annual report on Form 10-K for more information on SAF. Valero also owns 12 ethanol plants located in the U.S. Mid-Continent region with a combined production capacity of approximately 1.7 billion gallons per year. Valero manages its operations through its Refining, Renewable Diesel, and Ethanol segments. Please visit for more information. Valero Contacts Investors: Homer Bhullar, Vice President – Investor Relations and Finance, 210-345-1982 Eric Herbort, Director – Investor Relations and Finance, 210-345-3331 Gautam Srivastava, Director – Investor Relations, 210-345-3992 Media: Lillian Riojas, Executive Director – Media Relations and Communications, 210-345-5002 Safe-Harbor Statement Statements contained in this release and the accompanying earnings release tables, or made during the conference call, that state Valero's or management's expectations or predictions of the future are forward-looking statements intended to be covered by the safe harbor provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934. The words 'believe,' 'expect,' 'should,' 'estimates,' 'intend,' 'target,' 'commitment,' 'plans,' 'forecast, 'guidance' and other similar expressions identify forward-looking statements. Forward-looking statements in this release and the accompanying earnings release tables include, and those made on the conference call may include, statements relating to Valero's low-carbon fuels strategy, expected timing, cost and performance of projects, our plans, actions, assets and operations in California and expected timing and cost of obligations and other financial statement impacts, future market and industry conditions, future operating and financial performance, future production and manufacturing ability and size, and management of future risks, among other matters. It is important to note that actual results could differ materially from those projected in such forward-looking statements based on numerous factors, including those outside of Valero's control, such as legislative or political changes or developments, market dynamics, cyberattacks, weather events, and other matters affecting Valero's operations and financial performance or the demand for Valero's products. These factors also include, but are not limited to, the uncertainties that remain with respect to current or contemplated legal, political or regulatory developments that are adverse to or restrict refining and marketing operations, or that impose taxes or penalties on profits, windfalls, or margins above a certain level, tariffs and their effects on trading relationships, global geopolitical and other conflicts and tensions, the impact of inflation on margins and costs, economic activity levels, and the adverse effects the foregoing may have on Valero's business plan, strategy, operations and financial performance. For more information concerning these and other factors that could cause actual results to differ from those expressed or forecasted, see Valero's annual report on Form 10-K, quarterly reports on Form 10‑Q, and other reports filed with the Securities and Exchange Commission and available on Valero's website at Use of Non-GAAP Financial Information This earnings release and the accompanying earnings release tables include references to financial measures that are not defined under U.S. generally accepted accounting principles (GAAP). These non-GAAP measures include adjusted net income attributable to Valero stockholders, adjusted earnings per common share – assuming dilution, Refining margin, Renewable Diesel margin, Ethanol margin, adjusted Refining operating income, adjusted Ethanol operating income, adjusted net cash provided by operating activities, and capital investments attributable to Valero. These non-GAAP financial measures have been included to help facilitate the comparison of operating results between periods. See the accompanying earnings release tables for a definition of non-GAAP measures and a reconciliation to their most directly comparable GAAP measures. Note (e) to the earnings release tables provides reasons for the use of these non-GAAP financial measures. VALERO ENERGY CORPORATION EARNINGS RELEASE TABLES FINANCIAL HIGHLIGHTS (millions of dollars, except per share amounts) (unaudited) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Statement of income data Revenues $ 29,889 $ 34,490 $ 60,147 $ 66,249 Cost of sales: Cost of materials and other 26,332 30,943 53,880 58,625 Operating expenses (excluding depreciation and amortization expense reflected below) 1,522 1,424 3,045 2,835 Depreciation and amortization expense 786 684 1,466 1,367 Total cost of sales 28,640 33,051 58,391 62,827 Asset impairment loss (a) — — 1,131 — Other operating expenses (b) 4 3 8 37 General and administrative expenses (excluding depreciation and amortization expense reflected below) 220 203 481 461 Depreciation and amortization expense 28 12 39 24 Operating income 997 1,221 97 2,900 Other income, net 86 122 206 266 Interest and debt expense, net of capitalized interest (141 ) (140 ) (278 ) (280 ) Income before income tax expense 942 1,203 25 2,886 Income tax expense 279 277 14 630 Net income 663 926 11 2,256 Less: Net income (loss) attributable to noncontrolling interests (51 ) 46 (108 ) 131 Net income attributable to Valero Energy Corporation stockholders $ 714 $ 880 $ 119 $ 2,125 Earnings per common share $ 2.28 $ 2.71 $ 0.37 $ 6.47 Weighted-average common shares outstanding (in millions) 312 324 313 327 Earnings per common share – assuming dilution $ 2.28 $ 2.71 $ 0.37 $ 6.47 Weighted-average common shares outstanding – assuming dilution (in millions) 312 324 313 327 See Notes to Earnings Release Tables. Expand VALERO ENERGY CORPORATION EARNINGS RELEASE TABLES FINANCIAL HIGHLIGHTS BY SEGMENT (millions of dollars) (unaudited) Refining Renewable Diesel Ethanol Corporate and Eliminations Total Three months ended June 30, 2025 Revenues: Revenues from external customers $ 28,324 $ 565 $ 1,000 $ — $ 29,889 Intersegment revenues 2 533 205 (740 ) — Total revenues 28,326 1,098 1,205 (740 ) 29,889 Cost of sales: Cost of materials and other 25,042 1,044 988 (742 ) 26,332 Operating expenses (excluding depreciation and amortization expense reflected below) 1,307 72 144 (1 ) 1,522 Depreciation and amortization expense 707 61 19 (1 ) 786 Total cost of sales 27,056 1,177 1,151 (744 ) 28,640 Other operating expenses 4 — — — 4 General and administrative expenses (excluding depreciation and amortization expense reflected below) — — — 220 220 Depreciation and amortization expense — — — 28 28 Operating income (loss) by segment $ 1,266 $ (79 ) $ 54 $ (244 ) $ 997 Three months ended June 30, 2024 Revenues: Revenues from external customers $ 33,044 $ 554 $ 892 $ — $ 34,490 Intersegment revenues 3 630 229 (862 ) — Total revenues 33,047 1,184 1,121 (862 ) 34,490 Cost of sales: Cost of materials and other 29,995 930 874 (856 ) 30,943 Operating expenses (excluding depreciation and amortization expense reflected below) 1,219 80 125 — 1,424 Depreciation and amortization expense 604 62 19 (1 ) 684 Total cost of sales 31,818 1,072 1,018 (857 ) 33,051 Other operating expenses 5 — (2 ) — 3 General and administrative expenses (excluding depreciation and amortization expense reflected below) — — — 203 203 Depreciation and amortization expense — — — 12 12 Operating income by segment $ 1,224 $ 112 $ 105 $ (220 ) $ 1,221 See Operating Highlights by Segment. Expand VALERO ENERGY CORPORATION EARNINGS RELEASE TABLES FINANCIAL HIGHLIGHTS BY SEGMENT (millions of dollars) (unaudited) Refining Renewable Diesel Ethanol Corporate and Eliminations Total Six months ended June 30, 2025 Revenues: Revenues from external customers $ 57,081 $ 1,058 $ 2,008 $ — $ 60,147 Intersegment revenues 4 940 422 (1,366 ) — Total revenues 57,085 1,998 2,430 (1,366 ) 60,147 Cost of sales: Cost of materials and other 51,311 1,939 2,020 (1,390 ) 53,880 Operating expenses (excluding depreciation and amortization expense reflected below) 2,598 150 298 (1 ) 3,045 Depreciation and amortization expense 1,301 129 38 (2 ) 1,466 Total cost of sales 55,210 2,218 2,356 (1,393 ) 58,391 Asset impairment loss (a) 1,131 — — — 1,131 Other operating expenses 8 — — — 8 General and administrative expenses (excluding depreciation and amortization expense reflected below) — — — 481 481 Depreciation and amortization expense — — — 39 39 Operating income (loss) by segment $ 736 $ (220 ) $ 74 $ (493 ) $ 97 Six months ended June 30, 2024 Revenues: Revenues from external customers $ 63,187 $ 1,256 $ 1,806 $ — $ 66,249 Intersegment revenues 5 1,339 419 (1,763 ) — Total revenues 63,192 2,595 2,225 (1,763 ) 66,249 Cost of sales: Cost of materials and other 56,606 1,996 1,783 (1,760 ) 58,625 Operating expenses (excluding depreciation and amortization expense reflected below) 2,403 170 262 — 2,835 Depreciation and amortization expense 1,204 127 38 (2 ) 1,367 Total cost of sales 60,213 2,293 2,083 (1,762 ) 62,827 Other operating expenses (b) 10 — 27 — 37 General and administrative expenses (excluding depreciation and amortization expense reflected below) — — — 461 461 Depreciation and amortization expense — — — 24 24 Operating income by segment $ 2,969 $ 302 $ 115 $ (486 ) $ 2,900 See Operating Highlights by Segment. See Notes to Earnings Release Tables. Expand VALERO ENERGY CORPORATION EARNINGS RELEASE TABLES RECONCILIATION OF NON-GAAP MEASURES TO MOST COMPARABLE AMOUNTS REPORTED UNDER U.S. GAAP (h) (millions of dollars) (unaudited) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Reconciliation of net income attributable to Valero Energy Corporation stockholders to adjusted net income attributable to Valero Energy Corporation stockholders Net income attributable to Valero Energy Corporation stockholders $ 714 $ 880 $ 119 $ 2,125 Adjustments: Asset impairment loss (a) — — 1,131 — Income tax benefit related to asset impairment loss — — (254 ) — Asset impairment loss, net of taxes — — 877 — Project liability adjustment (b) — — — 29 Income tax benefit related to project liability adjustment — — — (7 ) Project liability adjustment, net of taxes — — — 22 Second-generation biofuel tax credit (c) — 7 — 14 Total adjustments — 7 877 36 Adjusted net income attributable to Valero Energy Corporation stockholders $ 714 $ 887 $ 996 $ 2,161 Expand Reconciliation of earnings per common share – assuming dilution to adjusted earnings per common share – assuming dilution Earnings per common share – assuming dilution $ 2.28 $ 2.71 $ 0.37 $ 6.47 Adjustments: Asset impairment loss (a) — — 2.80 — Project liability adjustment (b) — — — 0.07 Second-generation biofuel tax credit (c) — 0.02 — 0.04 Total adjustments — 0.02 2.80 0.11 Adjusted earnings per common share – assuming dilution $ 2.28 $ 2.73 $ 3.17 $ 6.58 See Notes to Earnings Release Tables. Expand VALERO ENERGY CORPORATION EARNINGS RELEASE TABLES RECONCILIATION OF NON-GAAP MEASURES TO MOST COMPARABLE AMOUNTS REPORTED UNDER U.S. GAAP (e) (millions of dollars) (unaudited) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Reconciliation of operating income (loss) by segment to segment margin, and reconciliation of operating income by segment to adjusted operating income by segment Refining segment Refining operating income $ 1,266 $ 1,224 $ 736 $ 2,969 Adjustments: Operating expenses (excluding depreciation and amortization expense reflected below) 1,307 1,219 2,598 2,403 Depreciation and amortization expense 707 604 1,301 1,204 Asset impairment loss (a) — — 1,131 — Other operating expenses 4 5 8 10 Refining margin $ 3,284 $ 3,052 $ 5,774 $ 6,586 Refining operating income $ 1,266 $ 1,224 $ 736 $ 2,969 Adjustments: Asset impairment loss (a) — — 1,131 — Other operating expenses 4 5 8 10 Adjusted Refining operating income $ 1,270 $ 1,229 $ 1,875 $ 2,979 Renewable Diesel segment Renewable Diesel operating income (loss) $ (79 ) $ 112 $ (220 ) $ 302 Adjustments: Operating expenses (excluding depreciation and amortization expense reflected below) 72 80 150 170 Depreciation and amortization expense 61 62 129 127 Renewable Diesel margin $ 54 $ 254 $ 59 $ 599 Ethanol segment Ethanol operating income $ 54 $ 105 $ 74 $ 115 Adjustments: Operating expenses (excluding depreciation and amortization expense reflected below) 144 125 298 262 Depreciation and amortization expense 19 19 38 38 Other operating expenses (b) — (2 ) — 27 Ethanol margin $ 217 $ 247 $ 410 $ 442 Ethanol operating income $ 54 $ 105 $ 74 $ 115 Adjustment: Other operating expenses (b) — (2 ) — 27 Adjusted Ethanol operating income $ 54 $ 103 $ 74 $ 142 See Notes to Earnings Release Tables. Expand VALERO ENERGY CORPORATION EARNINGS RELEASE TABLES RECONCILIATION OF NON-GAAP MEASURES TO MOST COMPARABLE AMOUNTS REPORTED UNDER U.S. GAAP (e) (millions of dollars) (unaudited) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Reconciliation of Refining segment operating income (loss) to Refining margin (by region), and reconciliation of Refining segment operating income (loss) to adjusted Refining segment operating income (by region) (f) U.S. Gulf Coast region Refining operating income $ 846 $ 686 $ 1,183 $ 1,693 Adjustments: Operating expenses (excluding depreciation and amortization expense reflected below) 737 656 1,457 1,320 Depreciation and amortization expense 387 377 763 750 Other operating expenses 3 3 7 6 Refining margin $ 1,973 $ 1,722 $ 3,410 $ 3,769 Refining operating income $ 846 $ 686 $ 1,183 $ 1,693 Adjustment: Other operating expenses 3 3 7 6 Adjusted Refining operating income $ 849 $ 689 $ 1,190 $ 1,699 U.S. Mid-Continent region Refining operating income $ 127 $ 111 $ 177 $ 380 Adjustments: Operating expenses (excluding depreciation and amortization expense reflected below) 200 188 395 373 Depreciation and amortization expense 78 88 154 175 Other operating expenses — — — 2 Refining margin $ 405 $ 387 $ 726 $ 930 Refining operating income $ 127 $ 111 $ 177 $ 380 Adjustment: Other operating expenses — — — 2 Adjusted Refining operating income $ 127 $ 111 $ 177 $ 382 See Notes to Earnings Release Tables. Expand VALERO ENERGY CORPORATION EARNINGS RELEASE TABLES RECONCILIATION OF NON-GAAP MEASURES TO MOST COMPARABLE AMOUNTS REPORTED UNDER U.S. GAAP (e) (millions of dollars) (unaudited) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Reconciliation of Refining segment operating income (loss) to Refining margin (by region), and reconciliation of Refining segment operating income (loss) to adjusted Refining segment operating income (by region) (f) (continued) North Atlantic region Refining operating income $ 219 $ 325 $ 435 $ 723 Adjustments: Operating expenses (excluding depreciation and amortization expense reflected below) 182 176 354 355 Depreciation and amortization expense 75 67 144 130 Other operating expenses — 1 — 1 Refining margin $ 476 $ 569 $ 933 $ 1,209 Refining operating income $ 219 $ 325 $ 435 $ 723 Adjustment: Other operating expenses — 1 — 1 Adjusted Refining operating income $ 219 $ 326 $ 435 $ 724 U.S. West Coast region Refining operating income (loss) $ 74 $ 102 $ (1,059 ) $ 173 Adjustments: Operating expenses (excluding depreciation and amortization expense reflected below) 188 199 392 355 Depreciation and amortization expense (d) 167 72 240 149 Asset impairment loss (a) — — 1,131 — Other operating expenses 1 1 1 1 Refining margin $ 430 $ 374 $ 705 $ 678 Refining operating income (loss) $ 74 $ 102 $ (1,059 ) $ 173 Adjustments: Asset impairment loss (a) — — 1,131 — Other operating expenses 1 1 1 1 Adjusted Refining operating income $ 75 $ 103 $ 73 $ 174 See Notes to Earnings Release Tables. Expand VALERO ENERGY CORPORATION EARNINGS RELEASE TABLES REFINING SEGMENT OPERATING HIGHLIGHTS (millions of dollars, except per barrel amounts) (unaudited) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Throughput volumes (thousand barrels per day) Feedstocks: Heavy sour crude oil 554 520 555 434 Medium/light sour crude oil 240 265 237 253 Sweet crude oil 1,509 1,530 1,535 1,518 Residuals 167 201 131 176 Other feedstocks 105 109 78 116 Total feedstocks 2,575 2,625 2,536 2,497 Blendstocks and other 347 385 339 388 Total throughput volumes 2,922 3,010 2,875 2,885 Yields (thousand barrels per day) Gasolines and blendstocks 1,444 1,490 1,410 1,419 Distillates 1,111 1,144 1,094 1,068 Other products (g) 392 407 394 423 Total yields 2,947 3,041 2,898 2,910 Operating statistics (e) (h) Refining margin $ 3,284 $ 3,052 $ 5,774 $ 6,586 Adjusted Refining operating income $ 1,270 $ 1,229 $ 1,875 $ 2,979 Throughput volumes (thousand barrels per day) 2,922 3,010 2,875 2,885 Refining margin per barrel of throughput $ 12.35 $ 11.14 $ 11.09 $ 12.54 Less: Operating expenses (excluding depreciation and amortization expense reflected below) per barrel of throughput 4.91 4.45 4.99 4.58 Depreciation and amortization expense per barrel of throughput 2.66 2.20 2.50 2.29 Adjusted Refining operating income per barrel of throughput $ 4.78 $ 4.49 $ 3.60 $ 5.67 See Notes to Earnings Release Tables. Expand VALERO ENERGY CORPORATION EARNINGS RELEASE TABLES RENEWABLE DIESEL SEGMENT OPERATING HIGHLIGHTS (millions of dollars, except per gallon amounts) (unaudited) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Operating statistics (e) (h) Renewable Diesel margin $ 54 $ 254 $ 59 $ 599 Renewable Diesel operating income (loss) $ (79 ) $ 112 $ (220 ) $ 302 Sales volumes (thousand gallons per day) 2,732 3,492 2,584 3,610 Renewable Diesel margin per gallon of sales $ 0.22 $ 0.80 $ 0.13 $ 0.91 Less: Operating expenses (excluding depreciation and amortization expense reflected below) per gallon of sales 0.29 0.25 0.32 0.26 Depreciation and amortization expense per gallon of sales 0.25 0.20 0.28 0.19 Renewable Diesel operating income (loss) per gallon of sales $ (0.32 ) $ 0.35 $ (0.47 ) $ 0.46 See Notes to Earnings Release Tables. Expand VALERO ENERGY CORPORATION EARNINGS RELEASE TABLES ETHANOL SEGMENT OPERATING HIGHLIGHTS (millions of dollars, except per gallon amounts) (unaudited) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Operating statistics (e) (h) Ethanol margin $ 217 $ 247 $ 410 $ 442 Adjusted Ethanol operating income $ 54 $ 103 $ 74 $ 142 Production volumes (thousand gallons per day) 4,583 4,474 4,525 4,470 Ethanol margin per gallon of production $ 0.52 $ 0.61 $ 0.50 $ 0.54 Less: Operating expenses (excluding depreciation and amortization expense reflected below) per gallon of production 0.34 0.31 0.36 0.32 Depreciation and amortization expense per gallon of production 0.05 0.05 0.05 0.05 Adjusted Ethanol operating income per gallon of production $ 0.13 $ 0.25 $ 0.09 $ 0.17 See Notes to Earnings Release Tables. Expand VALERO ENERGY CORPORATION EARNINGS RELEASE TABLES REFINING SEGMENT OPERATING HIGHLIGHTS BY REGION (millions of dollars, except per barrel amounts) (unaudited) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Operating statistics by region (f) U.S. Gulf Coast region (e) (h) Refining margin $ 1,973 $ 1,722 $ 3,410 $ 3,769 Adjusted Refining operating income $ 849 $ 689 $ 1,190 $ 1,699 Throughput volumes (thousand barrels per day) 1,841 1,827 1,756 1,711 Refining margin per barrel of throughput $ 11.78 $ 10.36 $ 10.72 $ 12.11 Less: Operating expenses (excluding depreciation and amortization expense reflected below) per barrel of throughput 4.40 3.95 4.58 4.24 Depreciation and amortization expense per barrel of throughput 2.31 2.27 2.40 2.41 Adjusted Refining operating income per barrel of throughput $ 5.07 $ 4.14 $ 3.74 $ 5.46 U.S. Mid-Continent region (e) (h) Refining margin $ 405 $ 387 $ 726 $ 930 Adjusted Refining operating income $ 127 $ 111 $ 177 $ 382 Throughput volumes (thousand barrels per day) 423 438 438 444 Refining margin per barrel of throughput $ 10.52 $ 9.73 $ 9.16 $ 11.49 Less: Operating expenses (excluding depreciation and amortization expense reflected below) per barrel of throughput 5.20 4.71 4.98 4.60 Depreciation and amortization expense per barrel of throughput 2.01 2.22 1.94 2.16 Adjusted Refining operating income per barrel of throughput $ 3.31 $ 2.80 $ 2.24 $ 4.73 See Notes to Earnings Release Tables. Expand VALERO ENERGY CORPORATION EARNINGS RELEASE TABLES REFINING SEGMENT OPERATING HIGHLIGHTS BY REGION (millions of dollars, except per barrel amounts) (unaudited) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Operating statistics by region (f) (continued) North Atlantic region (e) (h) Refining margin $ 476 $ 569 $ 933 $ 1,209 Adjusted Refining operating income $ 219 $ 326 $ 435 $ 724 Throughput volumes (thousand barrels per day) 396 469 444 459 Refining margin per barrel of throughput $ 13.20 $ 13.32 $ 11.61 $ 14.47 Less: Operating expenses (excluding depreciation and amortization expense reflected below) per barrel of throughput 5.04 4.12 4.40 4.24 Depreciation and amortization expense per barrel of throughput 2.07 1.56 1.79 1.56 Adjusted Refining operating income per barrel of throughput $ 6.09 $ 7.64 $ 5.42 $ 8.67 U.S. West Coast region (e) (h) Refining margin $ 430 $ 374 $ 705 $ 678 Adjusted Refining operating income $ 75 $ 103 $ 73 $ 174 Throughput volumes (thousand barrels per day) 262 276 237 271 Refining margin per barrel of throughput $ 18.02 $ 14.86 $ 16.42 $ 13.76 Less: Operating expenses (excluding depreciation and amortization expense reflected below) per barrel of throughput 7.91 7.92 9.15 7.21 Depreciation and amortization expense per barrel of throughput (d) 6.99 2.86 5.59 3.02 Adjusted Refining operating income per barrel of throughput $ 3.12 $ 4.08 $ 1.68 $ 3.53 See Notes to Earnings Release Tables. Expand VALERO ENERGY CORPORATION EARNINGS RELEASE TABLES AVERAGE MARKET REFERENCE PRICES AND DIFFERENTIALS (unaudited) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Refining Feedstocks (dollars per barrel) Brent crude oil $ 66.59 $ 84.96 $ 70.74 $ 83.40 Brent less West Texas Intermediate (WTI) crude oil 2.72 4.22 3.08 4.49 Brent less WTI Houston crude oil 1.89 2.73 1.99 2.83 Brent less Dated Brent crude oil (1.08 ) 0.09 (0.92 ) (0.65 ) Brent less Argus Sour Crude Index crude oil 2.02 3.90 2.29 4.43 Brent less Maya crude oil 8.11 11.49 8.95 11.89 Brent less Western Canadian Select Houston crude oil 6.25 11.14 6.75 11.36 WTI crude oil 63.87 80.74 67.67 78.91 Natural gas (dollars per million British thermal units) 2.83 1.74 3.11 1.77 Renewable volume obligation (RVO) (dollars per barrel) (i) 6.14 3.39 5.45 3.54 Product margins (RVO adjusted unless otherwise noted) (dollars per barrel) U.S. Gulf Coast: Conventional Blendstock for Oxygenate Blending (CBOB) gasoline less Brent 8.99 7.95 6.29 8.04 Ultra-low-sulfur (ULS) diesel less Brent 14.79 14.12 15.74 19.37 Propylene less Brent (not RVO adjusted) (11.50 ) (45.72 ) (13.02 ) (46.49 ) U.S. Mid-Continent: CBOB gasoline less WTI 14.91 13.28 12.09 11.20 ULS diesel less WTI 20.60 17.17 18.55 20.05 North Atlantic: CBOB gasoline less Brent 13.43 16.22 9.17 12.54 ULS diesel less Brent 18.79 16.27 19.84 22.24 U.S. West Coast: California Reformulated Gasoline Blendstock for Oxygenate Blending 87 gasoline less Brent 36.98 31.88 30.06 25.91 California Air Resources Board diesel less Brent 20.22 18.12 20.30 22.36 See Notes to Earnings Release Tables. Expand VALERO ENERGY CORPORATION EARNINGS RELEASE TABLES AVERAGE MARKET REFERENCE PRICES AND DIFFERENTIALS (unaudited) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Renewable Diesel New York Mercantile Exchange ULS diesel (dollars per gallon) $ 2.16 $ 2.51 $ 2.27 $ 2.61 Biodiesel Renewable Identification Number (RIN) (dollars per RIN) 1.09 0.51 0.94 0.55 California Low-Carbon Fuel Standard carbon credit (dollars per metric ton) 52.36 51.29 59.27 57.42 U.S. Gulf Coast (USGC) used cooking oil (dollars per pound) 0.56 0.42 0.53 0.41 USGC distillers corn oil (dollars per pound) 0.59 0.46 0.56 0.47 USGC fancy bleachable tallow (dollars per pound) 0.56 0.43 0.53 0.42 Ethanol Chicago Board of Trade corn (dollars per bushel) 4.52 4.43 4.62 4.39 New York Harbor ethanol (dollars per gallon) 1.84 1.90 1.83 1.77 Expand VALERO ENERGY CORPORATION EARNINGS RELEASE TABLES OTHER FINANCIAL DATA (millions of dollars) (unaudited) June 30, December 31, 2025 2024 Balance sheet data Current assets $ 23,804 $ 23,737 Cash and cash equivalents included in current assets 4,537 4,657 Inventories included in current assets 7,538 7,761 Current liabilities 14,677 15,495 Valero Energy Corporation stockholders' equity 24,078 24,512 Total equity 26,947 27,521 Debt and finance lease obligations: Debt – Current portion of debt (excluding variable interest entities (VIEs)) $ — $ 441 Debt, less current portion of debt (excluding VIEs) 8,233 7,586 Total debt (excluding VIEs) 8,233 8,027 Current portion of debt attributable to VIEs 137 58 Total debt 8,370 8,085 Finance lease obligations – Current portion of finance lease obligations (excluding VIEs) 217 217 Finance lease obligations, less current portion (excluding VIEs) 1,404 1,492 Total finance lease obligations (excluding VIEs) 1,621 1,709 Current portion of finance lease obligations attributable to VIEs 28 27 Finance lease obligations, less current portion attributable to VIEs 628 642 Total finance lease obligations attributable to VIEs 656 669 Total finance lease obligations 2,277 2,378 Total debt and finance lease obligations $ 10,647 $ 10,463 Expand Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Reconciliation of net cash provided by operating activities to adjusted net cash provided by operating activities (e) Net cash provided by operating activities $ 936 $ 2,472 $ 1,888 $ 4,318 Exclude: Changes in current assets and current liabilities (325 ) 789 (168 ) 629 Diamond Green Diesel LLC's (DGD) adjusted net cash provided by (used in) operating activities attributable to the other joint venture member's ownership interest in DGD (86 ) 83 (153 ) 205 Adjusted net cash provided by operating activities $ 1,347 $ 1,600 $ 2,209 $ 3,484 See Notes to Earnings Release Tables. Expand VALERO ENERGY CORPORATION EARNINGS RELEASE TABLES OTHER FINANCIAL DATA (millions of dollars, except per share amounts) (unaudited) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Reconciliation of capital investments to capital investments attributable to Valero (e) Capital expenditures (excluding VIEs) $ 144 $ 119 $ 333 $ 247 Capital expenditures of VIEs: DGD 4 73 63 142 Other VIEs 2 2 3 5 Deferred turnaround and catalyst cost expenditures (excluding VIEs) 247 184 621 636 Deferred turnaround and catalyst cost expenditures of DGD 10 42 46 51 Investments in nonconsolidated joint ventures — — 1 — Capital investments 407 420 1,067 1,081 Adjustments: DGD's capital investments attributable to the other joint venture member (6 ) (58 ) (54 ) (97 ) Capital expenditures of other VIEs (2 ) (2 ) (3 ) (5 ) Capital investments attributable to Valero $ 399 $ 360 $ 1,010 $ 979 Dividends per common share $ 1.13 $ 1.07 $ 2.26 $ 2.14 See Notes to Earnings Release Tables. Expand VALERO ENERGY CORPORATION NOTES TO EARNINGS RELEASE TABLES (a) In March 2025, we approved a plan with respect to the operations at our Benicia Refinery and currently intend to cease refining operations by the end of April 2026. In addition, we considered strategic alternatives for our remaining operations in California. As a result, we evaluated the assets of the Benicia and Wilmington refineries for impairment as of March 31, 2025 and concluded that the carrying values of these assets were not recoverable. Therefore, we reduced the carrying values of the Benicia and Wilmington refineries to their estimated fair values and recognized a combined asset impairment loss of $1.1 billion in the six months ended June 30, 2025. (b) In March 2021, we announced our participation in a then-proposed large-scale carbon capture and sequestration pipeline system with Navigator Energy Services (Navigator). In October 2023, Navigator announced that it decided to cancel this project. Under the terms of the agreements associated with the project, we had some rights from and obligations to Navigator, including a portion of the aggregate project costs. As a result, we recognized a charge of $29 million in the six months ended June 30, 2024 related to our obligation to Navigator. (c) In December 2024, the Internal Revenue Service approved our application for registration as a producer of second-generation biofuels with respect to the cellulosic ethanol produced at our ethanol plants. As a result, we recognized a current income tax benefit of $79 million in December 2024 for the tax credit attributable to volumes of cellulosic ethanol produced and sold by us in the U.S. from 2020 through 2024. Of the $79 million benefit, $7 million and $14 million is attributable to the three and six months ended June 30, 2024, respectively. (d) Depreciation and amortization expense for the three and six months ended June 30, 2025 includes incremental depreciation expense of approximately $100 million related to the Benicia Refinery. In connection with our plan to cease refining operations at our Benicia Refinery, we shortened the estimated useful life of the refinery, and as a result, will depreciate the revised carrying value of the refinery's long-lived assets to the estimated salvage value through April 2026. (e) We use certain financial measures (as noted below) in the earnings release tables and accompanying earnings release that are not defined under GAAP and are considered to be non-GAAP measures. We have defined these non-GAAP measures and believe they are useful to the external users of our financial statements, including industry analysts, investors, lenders, and rating agencies. We believe these measures are useful to assess our ongoing financial performance because, when reconciled to their most comparable GAAP measures, they provide improved comparability between periods after adjusting for certain items that we believe are not indicative of our core operating performance and that may obscure our underlying business results and trends. These non-GAAP measures should not be considered as alternatives to their most comparable GAAP measures nor should they be considered in isolation or as a substitute for an analysis of our results of operations as reported under GAAP. In addition, these non-GAAP measures may not be comparable to similarly titled measures used by other companies because we may define them differently, which diminishes their utility. Non-GAAP measures are as follows: Adjusted net income attributable to Valero Energy Corporation stockholders is defined as net income attributable to Valero Energy Corporation stockholders adjusted to reflect the items noted below, along with their related income tax effect, as applicable. The income tax effect for the adjustments was calculated using a combined U.S. federal and state statutory rate of 22.5 percent. We have adjusted for these items because we believe that they are not indicative of our core operating performance and that their adjustment results in an important measure of our ongoing financial performance to better assess our underlying business results and trends. The basis for our belief with respect to each adjustment is provided below. – Asset impairment loss – The asset impairment loss attributable to our Benicia and Wilmington refineries (see note (a)) is not indicative of our ongoing operations or our expectations about the profitability of our refining business. – Project liability adjustment – The project liability adjustment related to the cancellation of Navigator's project (see note (b)) is not indicative of our ongoing operations. – Second-generation biofuel tax credit – The income tax benefit from the second-generation biofuel tax credit recognized by us in December 2024 is attributable to volumes produced and sold from 2020 to 2024 (see note (c)). Therefore, the adjustment reflects the portion of the credit that is attributable to volumes produced and sold during the three and six months ended June 30, 2024. Adjusted earnings per common share – assuming dilution is defined as adjusted net income attributable to Valero Energy Corporation stockholders divided by the number of weighted-average shares outstanding in the applicable period, assuming dilution. Refining margin is defined as Refining segment operating income (loss) excluding operating expenses (excluding depreciation and amortization expense), depreciation and amortization expense, the asset impairment loss (see note (a)), and other operating expenses. We believe Refining margin is an important measure of our Refining segment's operating and financial performance as it is the most comparable measure to the industry's market reference product margins, which are used by industry analysts, investors, and others to evaluate our performance. Renewable Diesel margin is defined as Renewable Diesel segment operating income (loss) excluding operating expenses (excluding depreciation and amortization expense) and depreciation and amortization expense. We believe Renewable Diesel margin is an important measure of our Renewable Diesel segment's operating and financial performance as it is the most comparable measure to the industry's market reference product margins, which are used by industry analysts, investors, and others to evaluate our performance. Ethanol margin is defined as Ethanol segment operating income excluding operating expenses (excluding depreciation and amortization expense), depreciation and amortization expense, and other operating expenses. We believe Ethanol margin is an important measure of our Ethanol segment's operating and financial performance as it is the most comparable measure to the industry's market reference product margins, which are used by industry analysts, investors, and others to evaluate our performance. Adjusted Refining operating income is defined as Refining segment operating income (loss) excluding the asset impairment loss (see note (a)) and other operating expenses. We believe adjusted Refining operating income is an important measure of our Refining segment's operating and financial performance because it excludes items that are not indicative of that segment's core operating performance. Adjusted Ethanol operating income is defined as Ethanol segment operating income excluding other operating expenses. We believe adjusted Ethanol operating income is an important measure of our Ethanol segment's operating and financial performance because it excludes items that are not indicative of that segment's core operating performance. Adjusted net cash provided by operating activities is defined as net cash provided by operating activities excluding the items noted below. We believe adjusted net cash provided by operating activities is an important measure of our ongoing financial performance to better assess our ability to generate cash to fund our investing and financing activities. The basis for our belief with respect to each excluded item is provided below. – Changes in current assets and current liabilities – Current assets net of current liabilities represents our operating liquidity. We believe that the change in our operating liquidity from period to period does not represent cash generated by our operations that is available to fund our investing and financing activities. – DGD's adjusted net cash provided by operating activities attributable to the other joint venture member's ownership interest in DGD – We are a 50 percent joint venture member in DGD and we consolidate DGD's financial statements. Our Renewable Diesel segment includes the operations of DGD and the associated activities to market its products. Because we consolidate DGD's financial statements, all of DGD's net cash provided by operating activities (or operating cash flow) is included in our consolidated net cash provided by operating activities. In general, DGD's members use DGD's operating cash flow (excluding changes in its current assets and current liabilities) to fund its capital investments rather than distribute all of that cash to themselves. Nevertheless, DGD's operating cash flow is effectively attributable to each member and only a portion of DGD's operating cash flow should be attributed to our net cash provided by operating activities. Therefore, we have adjusted our net cash provided by operating activities for the portion of DGD's operating cash flow attributable to the other joint venture member's ownership interest because we believe that it more accurately reflects the operating cash flow available to us to fund our investing and financing activities. The adjustment is calculated as follows (in millions): Expand Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 DGD operating cash flow data Net cash provided by (used in) operating activities $ (262 ) $ 451 $ (101 ) $ 445 Exclude: Changes in current assets and current liabilities (89 ) 285 205 35 Adjusted net cash provided by (used in) operating activities (173 ) 166 (306 ) 410 Other joint venture member's ownership interest 50 % 50 % 50 % 50 % DGD's adjusted net cash provided by (used in) operating activities attributable to the other joint venture member's ownership interest in DGD $ (86 ) $ 83 $ (153 ) $ 205 Expand Capital investments attributable to Valero is defined as all capital expenditures and deferred turnaround and catalyst cost expenditures presented in our consolidated statements of cash flows, excluding the portion of DGD's capital investments attributable to the other joint venture member and all of the capital expenditures of VIEs other than DGD. In general, DGD's members use DGD's operating cash flow (excluding changes in its current assets and current liabilities) to fund its capital investments rather than distribute all of that cash to themselves. Because DGD's operating cash flow is effectively attributable to each member, only 50 percent of DGD's capital investments should be attributed to our net share of total capital investments. We also exclude the capital expenditures of other VIEs that we consolidate because we do not operate those VIEs. We believe capital investments attributable to Valero is an important measure because it more accurately reflects our capital investments. (f) The Refining segment regions reflected herein contain the following refineries: U.S. Gulf Coast- Corpus Christi East, Corpus Christi West, Houston, Meraux, Port Arthur, St. Charles, Texas City, and Three Rivers Refineries; U.S. Mid Continent- Ardmore, McKee, and Memphis Refineries; North Atlantic- Pembroke and Quebec City Refineries; and U.S. West Coast- Benicia and Wilmington Refineries. (g) Primarily includes petrochemicals, gas oils, No. 6 fuel oil, petroleum coke, sulfur, and asphalt. (h) We use certain operating statistics (as noted below) in the earnings release tables and the accompanying earnings release to evaluate performance between comparable periods. Different companies may calculate them in different ways. All per barrel of throughput, per gallon of sales, and per gallon of production amounts are calculated by dividing the associated dollar amount by the throughput volumes, sales volumes, and production volumes for the period, as applicable. Throughput volumes, sales volumes, and production volumes are calculated by multiplying throughput volumes per day, sales volumes per day, and production volumes per day (as provided in the accompanying tables), respectively, by the number of days in the applicable period. We use throughput volumes, sales volumes, and production volumes for the Refining segment, Renewable Diesel segment, and Ethanol segment, respectively, due to their general use by others who operate facilities similar to those included in our segments. We believe the use of such volumes results in per unit amounts that are most representative of the product margins generated and the operating costs incurred as a result of our operation of those facilities. (i) The RVO cost represents the average market cost on a per barrel basis to comply with the Renewable Fuel Standard program. The RVO cost is calculated by multiplying (i) the average market price during the applicable period for the RINs associated with each class of renewable fuel (i.e., biomass-based diesel, cellulosic biofuel, advanced biofuel, and total renewable fuel) by (ii) the quotas for the volume of each class of renewable fuel that must be blended into petroleum-based transportation fuels consumed in the U.S., as set or proposed by the U.S. Environmental Protection Agency, on a percentage basis for each class of renewable fuel and adding together the results of each calculation. Expand
Zawya
16-06-2025
- Business
- Zawya
Dutch Greenhouse Delta accelerates international horticulture partnerships during GreenTech Week
Amsterdam: During GreenTech 2025, Dutch Greenhouse Delta (DGD) welcomed hundreds of international guests. The platform for international collaboration hosted delegations from Egypt, the Gulf Region, Central Asia, India, and Southeast Asia with tailor-made programmes designed to strengthen relationships, explore new collaborations, and accelerate Controlled Environment Agriculture (CEA) worldwide. As one of the partners in the Strategic Trade Fair Programme, which is initiated initiated by Topsector Horticulture & Starting Materials and AVAG, DGD also contributed to an extensive programme aimed at positioning the Netherlands as a global frontrunner in future-proof horticulture. These customised programmes and the comprehensive Strategic Trade Fair activities, formed a powerful combination – giving momentum to bilateral dialogues and laying the groundwork for both new partnerships and long-term international cooperation. Strengthening International Cooperation After a succesful kick-off during the networking dinner at World Horti Center, DGD guided delegations from around the world through tailor-made programmes including GreenTech Amsterdam, company visits, networking events, expert sessions, and trips to renowned educational and research institutions. Key moments included: Egypt: A defining moment was the launch of the Partners for International Business (PIB) Programme for Horticulture and Water in Egypt, signed in the presence of Egyptian Deputy Minister of Agriculture Mr. Mustafa Al-Sayyad. This collaboration focuses on developing climate-smart, water-efficient horticultural solutions, contributing meaningfully to Egypt's sustainable agricultural future. Gulf Region: A major highlight was the signing ceremony between the Ministries of Agriculture of the Netherlands and Saudi Arabia, attended by Jan-Kees Goet, Vice Minister of Agriculture, Nature and Food Quality of the Netherlands, and H.E. Eng. Mansour Al Mushaiti, Vice Minister of Environment, Water and Agriculture (MEWA) of Saudi Arabia. Another key milestone was the signing of a Memorandum of Understanding (MoU) between Dutch Greenhouse Delta and the Saudi AgriFood Tech Alliance (SAFTA), as well as with other esteemed DGD partners. These agreements formalise cooperation to develop sustainable, technology-driven food systems, fully aligned with Saudi Vision 2030. The presence of H.E. Eng. Mansour Al Mushaiti underscored the strategic importance of this partnership in addressing long-term food and water security challenges. India: The incoming delegation from India focused on engaging with the Dutch food value chain to provide Indian pioneer growers and investors insights essential for building a successful greenhouse produce business in India. An important takeaway was that Dutch horticultural greenhouse technology can create transparent, affordable, high-quality food ecosystems from fork to farm. This inspired companies like Sandhu Greens to use the knowledge gained during this mission to position their future strawberries in a niche market in India focused on taste, quality, safety, sustainability, service, and community building. DGD encourages other pioneering companies, such as Fresh2Day, to follow this example—contributing to a healthier, cleaner, safer, and more sustainable food ecosystem in India. Central Asia: Delegations from Uzbekistan, Kyrgyzstan, and Kazakhstan participated in GreenTech, exploring opportunities to adopt advanced horticultural technology. Their visit marked an important step in strengthening horticultural development in Central Asia, with future cooperation in sight. Southeast Asia: With the presence of the Vietnamese Minister of Agriculture, Dr. Phung Duc Tien, Southeast Asia was also well represented. The emphasis here was on knowledge exchange and collaboration to accelerate sustainable horticulture development in the region. A bilateral meeting between the Vice Minister of Environment, Water and Agriculture (MEWA) of Saudi Arabia and the Vietnamese Minister of Agriculture, highlighting mutual commitment to strengthening horticultural cooperation. Throughout the week, the theme of this year's GreenTech — 'Passion for Horticulture' — resonated in every encounter. This commitment not only defines Dutch horticulture but also strengthens the foundation for long-term international partnerships. About Dutch Greenhouse Delta Dutch Greenhouse Delta (DGD) is a strong international platform representing the entire ecosystem of Dutch horticultural expertise and serving as a gateway to Dutch innovation in greenhouse horticulture. DGD is committed to promoting international collaboration and sharing Dutch horticultural knowledge to create sustainable ecosystems that meet the global demand for fresh, high-quality produce. For more information about Dutch Greenhouse Delta and its activities, please visit About the Strategic Trade Fair Program The Strategic Trade Fair Program is an initiative by Topsector Horticulture & Starting Materials and AVAG, carried out in collaboration with the Ministry of Agriculture, Fisheries, Food Security and Nature, the Netherlands Enterprise Agency (RVO), the Municipality of Westland, Dutch Greenhouse Delta, GreenTech, and World Horti Center. The program supports the international positioning of the Dutch horticultural sector and facilitates long-term partnerships and business opportunities with global impact. For inquiries, please contact: Mirjam Boekestijn CEO of Dutch Greenhouse Delta
Yahoo
30-01-2025
- Business
- Yahoo
Darling Ingredients Issues Statement on Fourth Quarter and Fiscal Year 2024 Earnings; Announces Timing of Earnings Release and Conference Call
IRVING, Texas, January 30, 2025--(BUSINESS WIRE)--Darling Ingredients Inc. (NYSE: DAR) today issued the following statement regarding fourth quarter and fiscal year 2024 earnings. Fourth quarter and fiscal year 2024 earnings for Darling Ingredients' 50/50 joint venture known as Diamond Green Diesel (DGD) were released today by Darling Ingredients' joint venture (JV) partner within its renewable diesel segment as part of its 2024 consolidated results. Darling Ingredients' joint venture partner today reported that its renewable diesel segment earned approximately $170 million in operating income for the three months ended Dec. 31, 2024. In the same period, DGD on a stand-alone basis incurred a lower of cost-or-market (LCM) valuation adjustment of approximately $118 million. For the 12 months ended Dec. 31, 2024, the JV partner reported that its renewable diesel segment earned approximately $507 million in operating income. In the same period, DGD on a stand-alone basis incurred a lower of cost-or-market valuation adjustment of approximately $176 million. In the three months ended Dec. 31, 2024, DGD sold/shipped 292.8 million gallons of renewable fuels. For the 12 months ended Dec. 31, 2024, DGD sold/shipped 1.25 billion gallons of renewable fuels. As determined on a stand-alone basis by Darling Ingredients, DGD EBITDA per gallon for the three months ended Dec. 31, 2024 was $0.40; EBITDA per gallon excluding LCM was $0.81. As determined on a stand-alone basis by Darling Ingredients, DGD EBITDA per gallon for the 12 months ended Dec. 31, 2024, was $0.46; EBITDA per gallon excluding LCM was $0.60. "DGD continues to outperform its peers on many metrics, and sustainable aviation fuel (SAF) is on line and producing on spec. With the recent clarity provided on the 45Z Clean Fuels Production Credit, we believe we have the line of sight needed to implement and monetize these credits," said Randall C. Stuewe, Chairman and Chief Executive Officer. "In the fourth quarter of 2024, Darling Ingredients' core business had its strongest performance of the year. As fat prices trend upward, the company has started 2025 with strong momentum we expect will continue to build." Darling Ingredients will host a conference call at 9 a.m. Eastern Time (8 a.m. Central Time) on February 6, 2025, to discuss fourth quarter and fiscal year 2024 financial results, which will be released earlier that day. At this time, the company will provide additional details regarding its 2025 outlook. A presentation accompanying supplemental financial data will also be available at To access the call as a listener, please register for the audio-only webcast. To join the call as a participant to ask a question, please register in advance to receive a confirmation email with the dial-in number and PIN for immediate access on Feb. 6, or call 833-470-1428 (United States) or 404-975-4839 (international) using access code 054278. A replay of the call will be available online via the webcast registration link two hours after the call ends. A transcript will be posted at within 24 hours. About Diamond Green Diesel Diamond Green Diesel (DGD) is a 50/50 joint venture between Darling Ingredients Inc. and Valero Energy Corporation. With more than 1.2 billion gallons produced annually, DGD is one of the world's largest producers of renewable diesel and sustainable aviation fuel. About Darling Ingredients A pioneer in circularity, Darling Ingredients Inc. (NYSE: DAR) takes material from the animal agriculture and food industries, and transforms them into valuable ingredients that nourish people, feed animals and crops, and fuel the world with renewable energy. The company operates over 260 facilities in more than 15 countries and processes about 15% of the world's animal agricultural by-products, produces about 30% of the world's collagen (both gelatin and hydrolyzed collagen), and is one of the largest producers of renewable energy. To learn more, visit Follow us on LinkedIn. Use of Non-GAAP Financial Measures: EBITDA per gallon is not a recognized accounting measurement under GAAP; it should not be considered as an alternative to net income or equity in income of Diamond Green Diesel, as a measure of operating results, or as an alternative to cash flow as a measure of liquidity and is not intended to be a presentation in accordance with GAAP. EBITDA per gallon is presented here not as an alternative to net income or equity in income of Diamond Green Diesel, but rather as a measure of Diamond Green Diesel's operating performance. Since EBITDA per gallon (generally, net income plus interest expense, taxes, depreciation and amortization divided by total gallons sold) is not calculated identically by all companies, this presentation may not be comparable to EBITDA per gallon presentations disclosed by other companies. Management believes that EBITDA per gallon is useful in evaluating Diamond Green Diesel's operating performance compared to that of other companies in its industry because the calculation of EBITDA per gallon generally eliminates the effects of financing, income taxes and certain non-cash and other items presented on a per gallon basis that may vary for different companies for reasons unrelated to overall operating performance. Cautionary Statements Regarding Forward-Looking Information: This release may contain "forward-looking statements," which include information concerning the Company's financial performance, plans, objectives, goals, strategies, future earnings, cash flow, performance and other information that is not historical information. When used in this release, the words "expects," "anticipates," "projects," "plans," "intends," "believes," "will" and variations of such words or similar expressions are intended to identify forward-looking statements. All forward-looking statements are based upon current expectations and beliefs and various assumptions. There can be no assurance that the Company will realize these expectations or that these beliefs will prove correct. There are a number of risks and uncertainties that could cause actual results to differ materially from the results expressed or implied by the forward-looking statements contained in this release. These include issues related to administration, guidance and/or regulations associated with biofuel policies, including the Section 45Z Clean Fuel Production Credit, and risks associated with the qualification and sale of such credits. Numerous other factors, many of which are beyond the Company's control, could cause actual results to differ materially from those expressed as forward-looking statements. Other risk factors include those that are discussed in the Company's filings with the Securities and Exchange Commission. Any forward-looking statement speaks only as of the date on which it is made, and the Company undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date on which it is made or to reflect the occurrence of anticipated or unanticipated events or circumstances. View source version on Contacts Media: Jillian FlemingDirector, Global Communications(972) 541-7115; Investors:Suann GuthrieSenior VP, Investor Relations, Sustainability & Communications(469) 214-8202; Sign in to access your portfolio
