Valero expects significant decrease in earnings for 2017

By Haley Olson | July 31, 2017

High energy costs and competition significantly decreased operating income for Valero in 2017, company executives said in a shareholder conference call July 27.

Valero reports that its adjusted operating income for its ethanol segment was $31 million in the second quarter of 2017, down from $49 million in the second quarter of 2016. Ethanol production averages 3.8 million gallons per day in 2017, the same as 2016.  

Valero executives also commented on the U.S. EPA’s Renewable Fuel Standard proposal, released July 5. “They are being receptive to conversation and are trying to do what’s right to fix broken processes,” said Joe Gorder, president and CEO.

“We are pleased to see the reductions in cellulosic and advanced targets that seem to be more in line with the volumes being produced,” said Jason Fraser, vice president of public policy and strategic planning. “Regarding the RIN prices, the RVO prices didn’t change our outlook for what we foresee on the horizon.”