Transportation fuel producer Valero Energy has reported a mixed bag of results for the second quarter of 2019.
Reported net income attributable to stockholders was $612 million (€549.5 million), down from €845 million (€758.8 million) in the corresponding quarter in 2018.
“We had solid operating performance while also completing major turnarounds at our Memphis, Houston and Benicia refineries in the second quarter,” said Joe Gorder, chairman, president and CEO of Valero. “In addition, we successfully commissioned the new alkylation unit at the Houston refinery to improve our margin capture going forward.”
The company reported an operating income of $7 million (€6.3 million) for its ethanol segment in the quarter, a considerable drop from the $43 million (€38.6 million) achieved in Q2 2018. The decrease was attributed mainly to higher corn prices.
Ethanol production volumes averaged 4.5 million gallons per day in Q2 2019, an increase of 531,000 gallons per day on the previous year period, thanks to additional production from three ethanol plants acquired by Valero at the end of 2018.
Renewable diesel segment
Sales volumes of renewable diesel averaged 769,000 gallons per day in Q2 2019, an increase of 387,000 gallons per day on the previous year’s quarter. With the expansion of the Diamond Green Diesel plant in Q3 2018, the segment reported operating income of $77 million (€69.1 million) for the quarter, an increase of $47 million (€42.2 million) on Q2 2018.
Valero added that the expansion of its Diamond Green Diesel plant in Norco, Louisiana, is expected to be complete in late 2021. In November last year, Valero approved the expansion of the facility to 675 million gallons per year of renewable diesel production capacity.
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