The demand for gasoline at the Valero Energy Corporation gas stations reached the levels prior to the Covid-19 pandemic in 2021.
On a year-over-year basis, the revenue of this company increased 75.6% in 2021, to 113,977 million dollars. And if compared to 2019, they increased 5.2 percent.
In general, Valero Energy’s business continued to recover throughout 2021 after experiencing significant negative effects from a decrease in demand and market prices for most of its products in 2020 as a result of the pandemic.
The outbreak of Covid-19 and its development as a pandemic in March 2020 altered the world economy and significantly reduced the demand and market prices of most of its products, mainly gasoline and diesel.
However, in mid-2020, the company began to experience increased demand and higher market prices for most of its products, and these improvements continued through 2021 along with the continued recovery of the global economy as efforts progressed. to tackle the virus, including the development and distribution of multiple vaccines and therapeutics against Covid-19.
Gasoline and diesel demand returned to pre-pandemic levels during 2021 in most regions where Valero Energy operates, and at times during 2021 the company experienced diesel demand above pre-pandemic levels.
Jet fuel demand also improved in 2021, albeit at a slower pace than other products the company produces relative to pre-pandemic levels.
These improvements in demand and an associated increase in refining margins were the main contributors to the company reporting $930 million of net income attributable to Valero shareholders for the year ended December 31, 2021.
However, its improved 2021 results were negatively impacted by estimated excess energy costs of $579 million ($467 million after tax) as a result of a significant increase in the cost of electricity and natural gas at some of its refineries and ethanol plants that emerged from Winter Storm Uri in February 2021.
Additionally, its operations were negatively impacted by Hurricane Ida in August 2021, causing the company to close two refineries and its renewable diesel plant in Louisiana in preparation for the storm.
Although the refineries and plant sustained minimal damage from the hurricane, restarting operations was delayed until power and other utilities were restored and product was shipped to its customers until the Mississippi River was reopened to boat traffic. and barges.