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This year has been a challenging environment in many aspects. The COVID-19 pandemic and ensuing global economic downturn have affected the health and livelihoods of so many people and have had a severe impact on all businesses, including Valero.
As troubling as our circumstances may be from time to time, it’s gratifying to see individuals stepping up and selflessly helping, whether it be by providing health care to those who are sick or food to those who are hungry. In this regard, the Valero team is doing its part.
In this spirit of giving and looking beyond ourselves to the needs of others, despite the cancellation of the Valero Texas Open, more than $14 million in net proceeds will be distributed to agencies across South Texas and the United States.
Valero is grateful to have incredible business partners helping the company be the best operator in the industry and in our communities. Their steadfast support and financial commitment, without the tournament even taking place, is an example of true generosity. Valero values its long-standing relationships, and this year’s charitable contribution is evidence we are stronger together.
The Valero Texas Open has contributed more than $171 million to hundreds of worthy charities since inception while producing more than $60 million of annual economic impact across the U.S.
Valero reported second-quarter 2020 results on July 30.* There was a rapid recovery in demand for fuel products through the second quarter. Although Valero reported a net income of $1.3 billion, this reflected an accounting adjustment of $1.8 billion for the quarter as the value of inventories increased. Without this adjustment, Valero reported an adjusted net loss of $504 million or $1.25 per share, which was a narrower loss than Wall Street estimated. Valero returned $400 million in cash to stockholders, and the board declared a quarterly common stock dividend of $0.98 per share on July 16, reaffirming long-term confidence in the company.
Even though it has been tough financially for Valero this year, we have kept people employed and fully compensated. Valero has dedicated employees who are working courageously and tirelessly through this difficult period while giving generously and volunteering their time to help make a difference.
Valero is part of the country’s “critical infrastructure,” and through COVID-19, the team has continued to operate, providing fuel and other essential products our nation needs. Employees quickly adopted new safety protocols so that Valero could continue to operate amid this pandemic. Locally, Valero has taken extra precautions to ensure the 1 million-square-foot office is a safe environment for the San Antonio team. This has resulted in zero instances of workplace transmission on campus, a testament to the safety practices and commitment of the team at Valero. A safe workplace has enabled teams to collaborate during this critical period for the company. In doing so, Valero has been able to quickly and efficiently respond in real-time to the needs of the business across the globe.
Our employees are our greatest asset and the heart of the company. Their health, safety, and well-being remain a top priority, and Valero will continue to take the steps necessary to keep them safe, whether they are in the field or at headquarters here in San Antonio.
*Second-quarter earnings release and quarterly report on Form 10-Q, available at www.valero.com.