Stronger refining margins and higher throughput volumes helped U.S. refining giant Valero Energy Corporation (NYSE: VLO) beat analyst estimates of fourth-quarter earnings.
Valero on Thursday kicked off the earnings season for the U.S. refiners by reporting an adjusted net income attributable to Valero stockholders of $1.2 billion, or $3.82 per share, for the fourth quarter. This easily beat the analyst consensus estimate of $3.27 earnings per share in The Wall Street Journal.
Strong refining margins boosted the net income, as the refining margin per barrel of throughput surged to $13.61 for the fourth quarter of 2025 from $8.44 for the same period of 2024.
For the full-year 2025, Valero’s refining margin per barrel of throughput rose to $12.29, up from $10.62 margin per barrel for 2024.
Total throughput volumes also increased, to 3.113 million barrels per day (bpd) in the fourth quarter, up from 2.995 million bpd for the same period of 2024.
As a result, Valero’s adjusted operating income in the refining segment soared to $1.7 billion for the fourth quarter of 2025, from $441 million for the fourth quarter of 2024.
Crude throughput volumes rose for the full-year 2025, too, to 2.988 million bpd, up from 2.912 million bpd.
Valero and the other U.S. refiners will be closely watched after the earnings season for signs they would benefit from the U.S.-controlled sales of Venezuela’s crude oil.
Valero has already reportedly bought Venezuelan crude from the commodity trading giants Vitol Group and Trafigura, which are authorized by the Trump Administration to help market Venezuela’s oil.
Valero, Marathon, and Phillips 66 own and operate complex refineries on the Gulf Coast that were built to process the heavy crude that Venezuela produces.
Valero, in particular, could run an additional 200,000 bpd of Venezuelan crude in the near term, according to BofA analysts quoted by Reuters.
By Charles Kennedy for Oilprice.com
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