The BusinessWeek 50 Ranking
4
Valero Energy
Strong demand and high margins pushed San Antonio independent refiner Valero Energy's profits up 190% last year. Valero's costs are lower because it is set up to handle so-called heavy and sour crudes, lower-quality grades of oil that enjoy a big discount to the benchmark West Texas Intermediate. Margins are likely to stay strong, as growth in refining capacity lags behind demand for gasoline, jet fuel, and other refined products. No wonder Valero is investing in new capacity in such places as Louisiana, Texas, and Aruba, and is also on the prowl for refinery acquisitions.
Company Info
| 2004 Rank | NR |
| STOCK INFO | VLO |
| Market Value | $18.2 BILLION |
| Total Return | (1-yr.) 139.2%
(3-yr.) 242.3% |
| 2004 sales | $54.6 BILLION |
| Sales Growth | (1-yr.) 44%
(3-yr.) 51.4% |
| Net income | $1.8 BILLION |
| Net Income Growth | (1-yr.) 190%
(3-yr.) 71.7% |
| Net Margin* | 3.3% |
| Return on Equity* | 24.8% |
| Industry | ENERGY |
| CORPORATE WEB SITE | |
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*Trailing 12 months
Company data as of 2/28/05 provided by Standard & Poor's Compustat
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Company Snapshot
Valero Energy Corporation operates as a refining and marketing company. It produces a slate of gasolines, distillates, jet fuel, asphalt, petrochemicals, low-sulfur diesel fuel, and oxygenates. The company operates in two segments, Refining and Retail. Its Refining segment includes refining operations, wholesale marketing, product supply and distribution, and transportation operations. This segment is segregated geographically into the Gulf Coast, Mid-Continent, West Coast, and northeast regions. Valero’s refining network extends from eastern Canada to the U.S. Gulf Coast and West Coast, including the island of Aruba. In the Retail segment, the company engages in the operation of convenience stores, Canadian dealers or jobbers, truckstop facilities, cardlock facilities, and home heating oil operations. Valero has retail operations in the northeastern United States and eastern Canada. As of March 31, 2004, it owned and operated 15 refineries, with a combined throughput capacity, including crude oil and other feedstocks of approximately 2.4 million barrels per day. The company was formed in 1980. Valero was incorporated in Delaware in 1981 under the name Valero Refining and Marketing Company, and changed its name to Valero Energy Corporation in 1997. The company has its principal executive offices in San Antonio, Texas.
No. of Employees
19,797
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