Valero Energy reports first-quarter loss amid challenging market conditions

Valero Energy, a leading American refiner, reported a net loss of $595 million, or $1.90 per share, for the first quarter of 2025, marking a significant reversal from the $1.2 billion profit, or $3.75 per share, recorded during the same period last year. 

The quarterly performance was heavily impacted by an asset impairment charge of $1.1 billion related to the company's West Coast operations. Excluding this charge, Valero posted an adjusted net income of $282 million, or $0.89 per share. 

"We delivered positive results for the first quarter despite heavy maintenance activity across our refining system and a challenging margin environment in the Renewable Diesel segment," said Lane Riggs, Valero's Chairman, Chief Executive Officer and President. 

The company's refining segment reported an operating loss of $530 million, compared to operating income of $1.7 billion for the first quarter of 2024. On an adjusted basis, the segment recorded operating income of $605 million, compared to the $1.8 billion from the first quarter of 2024. 

US refineries routinely schedule seasonal maintenance during the first quarter, a process industry experts call "turnaround activity." This essential work prepares facilities for increased production demands during the summer driving season. However, these planned shutdowns temporarily reduce operational capacity, limiting revenue potential. In Valero's case, this contributed to quarterly refining margins dropping significantly to $2.49 billion from $3.53 billion in the same period last year. 

Despite the challenging quarter, Valero maintained its commitment to shareholder returns, distributing $633 million to stockholders. On 16 January, the company announced a 6 percent increase in its quarterly cash dividend on common stock to $1.13 per share. 

Valero also strengthened its financial position by issuing $650 million in Senior Notes in February and repaying approximately $440 million in maturing debt. The company ended the quarter with $8.5 billion in total debt and $4.6 billion in cash and cash equivalents.