Valero Q1 results: renewable diesel sales up as ethanol income drops

Valero Energy has released its first quarter 2019 results, announcing net income of $141 million (€126 million) for the first three months of the year.

This was down from $469 million for the same quarter last year.

“Investments to increase our system’s flexibility and the team’s relentless focus on safety enabled us to capture good margins in an otherwise weak margin environment,” said chairman, president and CEO Joe Gorder. “The ability to achieve positive earnings and operating cash flow in a low margin environment is a testament to the earnings capability of our assets across margin cycles.”

The Q1 2019 quarter was the first witnessing results from Valero’s recently created renewable diesel segment, reflecting the operations of its joint venture Diamond Green Diesel. The segment reported operating income for the first quarter of $49 million, with sales of fuel averaging 790,000 gallons per day.

Valero’s ethanol segment recorded $3 million of operating income for the quarter, compared to $45 million for the previous year period, with the decrease attributed to lower ethanol prices.