Valero reports increased operating income for ethanol segment

By Erin Voegele | July 26, 2018

Valero Energy Corp. has released second quarter financial results, announcing that its ethanol segment reported $43 million of operating income for the three-month period, up from $31 million during the same period of last year.

The increase in operating income is primarily attributed to higher distillers grain prices and stronger production volumes. Ethanol production volumes of 4 million gallons per day were 227,000 gallons per day higher than during the second quarter of 2017.

During an investor call, John Locke, vice president of investor relations at Valero, said the company’s ethanol segment is expected to produce 4 million gallons per day in the third quarter. Valero currently owns 11 ethanol plants with a combined production capacity of approximately 1.4 billion gallons.

The company also provided a brief update of its Diamond Green Diesel plant, noting work to expand the facility to 18,000 barrels per day of capacity is expected to be complete in August.

Overall, Valero reported net income attributable to stockholders of $845 million, or $1.96 per share, up from $548 million, or $1.23 per share, for the second quarter of last year.