Valero reports financial results for Q4 2012
Valero Energy Corp. has released its financial results for the fourth quarter of 2012, reporting net income attributable to Valero stockholders of $1 billion, or $1.82 per share, compared to net income attributable to Valero stockholders of $45 million, or 8 cents per share, for the fourth quarter of 2011.
Regarding Valero’s ethanol segment, the company reported an operating income of $12 million in the fourth quarter of 2012, a significant decrease when compared to the $181 million in operating income reported for the segment for the same quarter of 2011. During a call to discuss the results, Ashley Smith, vice present of investor relations at Valero, noted that $169 million decrease is mainly due to lower growth margins, high corn prices and excess ethanol inventories that squeezed margins to low levels.
According to Smith, ethanol production averaged 2.7 million gallons per day during the fourth quarter of 2012, a decline of nearly 800,000 gallons per day when compared to production levels for the fourth quarter of 2011. “Until margins improve, we expect production rates to remain well below capacity with three of our plants temporarily idling,” he continued.
Valero owns 10 ethanol plants with a combined production capacity of 1.2 billion gallons per year.