How Does Valero Energy Make its Money?
Valero Energy is the world’s largest independent petroleum refiner and one of the largest renewable fuels producers. The company operates 15 petroleum refineries with a combined throughput capacity of approximately 3.2 million barrels per day across the US, Canada, and UK. Valero also operates 12 ethanol plants and is a major player in renewable diesel through its Diamond Green Diesel joint venture. The company’s refining operations convert crude oil into transportation fuels (gasoline, diesel, jet fuel), petrochemical feedstocks, and other products.
Valero Energy (VLO) Business Model
Valero Energy operates in the oil & gas sector. Below is a summary of Valero Energy’s revenue streams, how the company generates income, and the key financial metrics from its most recent annual report. This breakdown uses data from Valero Energy’s 2024 fiscal year filings with the SEC.
Valero Energy Competitors
Valero Energy’s key competitors and comparable public companies in the oil & gas sector include Marathon Petroleum, Phillips 66, ExxonMobil, and Chevron. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Valero Energy stacks up by comparing their revenue breakdown, margins, and growth metrics.
Valero Energy Competitors
Valero Energy’s key competitors and comparable public companies in the oil & gas sector include Marathon Petroleum, Phillips 66, ExxonMobil, and Chevron. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Valero Energy stacks up by comparing their revenue breakdown, margins, and growth metrics.
Valero Energy Competitors
Valero Energy’s key competitors and comparable public companies in the oil & gas sector include Marathon Petroleum, Phillips 66, ExxonMobil, and Chevron. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Valero Energy stacks up by comparing their revenue breakdown, margins, and growth metrics.
Valero Energy Competitors
Valero Energy’s key competitors and comparable public companies in the oil & gas sector include Marathon Petroleum, Phillips 66, ExxonMobil, and Chevron. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Valero Energy stacks up by comparing their revenue breakdown, margins, and growth metrics.
Revenue Breakdown
| Segment | 2024 | 2023 | YoY Growth |
|---|---|---|---|
| Refining | $123,000 | $130,000 | -5.4% |
| Renewable Diesel (DGD JV) | $4,200 | $3,500 | +20.0% |
| Ethanol | $5,800 | $5,200 | +11.5% |
| Total Revenue | $133,000 | $139,000 | -4.3% |
Refining — 92% of Revenue
Renewable Diesel (DGD JV) — 3% of Revenue
Ethanol — 4% of Revenue
Income Statement Overview
| Metric | 2024 | 2023 |
|---|---|---|
| Total Revenue | $133,000 | $139,000 |
| Cost of Revenue | $121,000 | $124,000 |
| Gross Profit | $12,000 | $15,000 |
| Operating Expenses | $4,200 | $4,000 |
| Operating Income | $7,800 | $11,000 |
| Net Income | $5,100 | $8,900 |
All values in millions USD unless otherwise stated.
Key Financial Metrics
- Gross Margin: 9.0%
- Operating Margin: 5.9%
- Revenue Growth: -4.3%
Is Valero Energy Profitable?
Yes, Valero Energy is profitable. The company reported net income of $5,100 on total revenue of $133,000. With an operating margin of 5.9%, Valero Energy demonstrates solid profitability for the oil & gas sector. The gross margin of 9.0% reflects Valero Energy’s pricing power and cost structure.
What to Watch
- Crack spread trends and global refining margin environment
- Diamond Green Diesel joint venture expansion and sustainable aviation fuel production
- Ethanol production and renewable identification number (RIN) values
- Share buyback pace — Valero has been one of the most aggressive repurchasers in energy
Valero Energy (VLO) Financial Summary
Valero Energy (VLO) is an oil & gas company that generated $133,000 in total revenue in fiscal year 2024. Revenue grew -4.3% year-over-year. The company earned $5,100 in net income, making it profitable. For a deeper look at Valero Energy’s revenue breakdown, business segments, and financial performance, review the detailed analysis above.