Cheap oil not enough to save Valero from weak ethanol margins

In Texas, Valero has been hit hard by weakening ethanol margins with its ethanol segment’s operating profit slipping to $37 million during the fourth quarter from $154 million the year previously. With its refining margins holding flat, the weaker ethanol margins had a strong impact on the overall business with overall earnings down 74% at just $298 million from $1.16 billion the year before. Overall revenue was down 33% as well, but even so it still managed to beat Reuters’ expectations by about $2 billion at $18.78 billion.