Valero Energy Corporation Announces Earnings Results for the Fourth Quarter and Full Year of 2012; Announces Production Results for the Fourth Quarter of 2012; Reports Impairment Loss; Provides Capital Expenditure Guidance for the Fiscal 2013; Provides Operating and Earnings Guidance for the First Quarter of Fiscal 2013
For the full year 2012, net income attributable to the company's stockholders was $2.1 billion or $3.75 per share. Included in these results were non-cash asset impairment losses of $983 million after taxes or $1.77 per share and severance expense of $41 million after taxes or $0.07 per share, mainly related to the shutdown and impairment of the Aruba refinery. The full year capital spending, including $479 million for turnaround and catalyst expenditures, to $3.4 billion or $100 million below guidance.
For the fourth quarter 2012, refining throughput volume averaged 2.64 million barrels per day, down 73,000 barrels per day from the fourth quarter of 2011 mainly due to the lack of throughput volume at the Aruba refinery, which was shut down in the first quarter of 2012.
For the quarter, the company reported non-cash asset impairment loss of $37 million after taxes.
The company expects 2013 capital spending to be consistent with prior estimate of $2.5 billion.
For modeling the first quarter operations, the company expects the refinery throughput volumes to fall within the following ranges: The Gulf Coast at 1.4 million to 1.45 million barrels per day; Mid-Continent at 390,000 to 400,000 barrels per day; West Coast at 245,000 to 255,000 barrels per day; and North Atlantic at 450,000 to 470,000 barrels per day. Refining cash operating expenses in the first quarter are expected to be around $4 per barrel. Regarding the ethanol operations in the first quarter, the company expect total throughput volumes of 2.4 million gallons per day and operating expenses should average $0.40 per gallon, including $0.05 per gallon for non-cash costs such as depreciation and amortization.
For the first quarter of 2013, the company announced net interest expense should be around $85 million. Total depreciation and amortization expense in the first quarter should be around $405 million, and effective tax rate in the first quarter should be approximately 35%.