Valero Completes St. Charles FCC Unit Optimization

The Tip Desk · October 22, 2026 · 3 min read

Net income attributable to stockholders reached $6.8 billion, or $23.89 a share, as refining operating income doubled from the second quarter.

Valero Energy Corporation (VLO) reported net income attributable to stockholders of $6.8 billion, or $23.89 a share, for the third quarter of 2026, compared with $1.1 billion, or $3.53 a share, a year earlier. Adjusted net income was $6.8 billion, or $23.90 a share.

The multinational refiner said the result followed near-record refinery utilization and a completed upgrade at St. Charles. Chairman, Chief Executive Officer and President Lane Riggs said the St. Charles FCC Unit optimization project was finished on schedule and within budget and is expected to enhance production of higher-value products including alkylate and gasoline.

Refining operating income was $8.8 billion, versus $1.6 billion a year earlier. Adjusted Refining operating income was $8.8 billion, compared with $1.7 billion. Throughput averaged 3.0 million barrels per day, matching the second-quarter average. Refining margin was $10.7 billion, or $39.24 a barrel of throughput, versus $13.14 a barrel a year earlier. Adjusted Refining operating income was $32.09 a barrel of throughput, compared with $5.86 a barrel.

U.S. Gulf Coast Refining operating income was $5.2 billion, versus $940 million a year earlier. U.S. Mid-Continent operating income was $1.4 billion, versus $188 million. North Atlantic operating income was $1.8 billion, versus $532 million. U.S. West Coast Refining swung to $305 million of operating income from a $50 million loss a year earlier.

The Renewable Diesel segment, which consists of the Diamond Green Diesel joint venture, reported operating income of $353 million, compared with an operating loss of $28 million a year earlier. Sales volumes averaged 3.4 million gallons per day. Renewable Diesel margin was $510 million, or $1.62 a gallon of sales, versus $0.50 a gallon a year earlier.

Ethanol operating income was $272 million, versus $183 million a year earlier. Production volumes averaged 4.8 million gallons per day, which the company said set a new quarterly record. Ethanol margin was $455 million, or $1.03 a gallon of production, versus $0.83 a gallon a year earlier.

General and administrative expenses were $308 million. The effective tax rate was 23 percent.

Net cash provided by operating activities was $6.9 billion. Excluding a $526 million unfavorable working-capital impact and $205 million of adjusted net cash associated with the other joint venture member’s share of DGD, adjusted net cash provided by operating activities was $7.3 billion. Capital investments totaled $432 million, of which $371 million was for sustaining the business. Capital investments attributable to Valero were $429 million. Stockholder cash returns resulted in a payout ratio of 52 percent of adjusted net cash provided by operating activities.

Valero repaid $100 million of 7.65% debentures that matured in July and $426 million of 3.400% senior notes that matured in September. The company ended the quarter with $8.6 billion of total debt, $2.4 billion of finance lease obligations, and $9.8 billion of cash. The debt-to-capitalization ratio, net of cash, was 4 percent as of September 30, 2026.