Valero Energy Corp (NYSE:VLO) shares are trading higher after it reported fourth-quarter FY23 results.

Revenue of $35.41 billion missed the consensus of $35.69 billion. Adjusted EPS was $3.55, beating the consensus of $2.95.

Refining segment reported operating income of $1.6 billion, compared to $4.3 billion in prior year quarter. Refining throughput volumes averaged 3.0 million barrels per day in the quarter.

The Renewable Diesel segment reported operating income of $84 million, compared to $261 million a year ago. Segment sales volumes averaged 3.8 million gallons daily, 1.3 million gallons higher than the prior-year quarter on additional volumes from the DGD Port Arthur plant.

The Ethanol segment reported operating income of $190 million compared to $7 million a year ago. Ethanol production volumes averaged 4.5 million gallons per day, 448 thousand gallons per day higher than the prior year’s quarter.

Dividend: On January 18, the Board of Directors approved an increase in the regular quarterly cash dividend per share to $1.07 from $1.02, payable on March 4, 2024, to shareholders of record as of February 1, 2024. 

Operating cash flow stood at $9.2 billion in the year. Valero returned $1.3 billion to stockholders in the fourth quarter, through dividends of $346 million and share repurchases of $966 million.

Valero ended 2023 with $9.2 billion of total debt, $2.3 billion of finance lease obligations, and $5.4 billion of cash and cash equivalents. 

The company stated that The Sustainable Aviation Fuel (SAF) project at the DGD Port Arthur plant remains on schedule and is expected to be completed in first quarter of 2025 and cost $315 million, with half of that attributable to Valero. 

Price Action: VLO shares are up 2.56% at $133.49 on the last check Thursday.