Valero reports ethanol production up but operating income down due to lower ethanol prices

February 11, 2018 |

In Texas, Valero Energy Corporation reported net income attributable to Valero stockholders of $2.4 billion, or $5.42 per share, for the fourth quarter of 2017 compared to $367 million, or $0.81 per share, for the fourth quarter of 2016. Biofuel blending costs were $311 million in the fourth quarter of 2017, which is $94 million higher than in the fourth quarter of 2016, and $942 million in 2017, which is $193 million higher than in 2016. The higher cost is mainly due to higher Renewable Identification Number (RIN) prices.

The ethanol segment reported $37 million of operating income for the fourth quarter of 2017 compared to $126 million for the fourth quarter of 2016. The decrease in operating income is attributed primarily to margin pressure resulting from lower ethanol prices. Ethanol production volumes averaged 4.0 million gallons per day in the fourth quarter of 2017, which is 53,000 gallons per day higher than in the fourth quarter of 2016.

Category: Fuels

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