Valero Vitality Corp. launched third quarter monetary outcomes on Oct. 26, reporting considerably increased earnings and manufacturing volumes for its ethanol phase. Renewable diesel gross sales volumes had been additionally up and the corporate’s sustainable aviation gas (SAF) undertaking stays on schedule.
Valero’s renewable diesel phase, which consists of its Diamond Inexperienced Diesel three way partnership with Darling Substances, reported $123 million of working earnings for the third quarter, down from $212 million throughout the identical interval of 2022. Valero primarily attributed the decline in working earnings to decrease renewable diesel margins.
Renewable diesel gross sales volumes averaged 3 million gallons per day in the course of the three-month interval, up 761,000 gallons per day when in comparison with the identical interval of final 12 months. Valero attributed the upper gross sales volumes as a result of impression of extra volumes from the DGG Port Arthur plant, which started operations within the fourth quarter of final 12 months. Throughout a 3rd quarter earnings name, Homer Bhullar, vice chairman of investor relations at Valero, stated the corporate at present expects renewable diesel gross sales volumes for the complete 12 months to succeed in roughly 1.2 billion gallons.
Valero’s ethanol phase reported $197 million in working earnings for the third quarter, up from $1 million throughout the identical interval of final 12 months. Ethanol manufacturing volumes averaged 4.3 million gallons per day, up 831,000 gallons per day when in comparison with the third quarter of 2022. The corporate attributed the elevated working earnings to increased manufacturing volumes and decrease corn costs. Shifting into the fourth quarter, the ethanol phase is predicted to provide 4.4 million gallons per day, in line with Bhullar.
Lane Riggs, president and CEO of Valero, mentioned the corporate’s plans to provide SAF. The SAF undertaking at DGD’s Port Arthur facility in Texas is predicted to offer the power with optionality to improve 50 p.c of its present 470 MMgy manufacturing capability to SAF. Riggs stated the undertaking stays on schedule is and at present anticipated to be full in 2025.
Additionally in the course of the name, Bhullar addressed Navigator CO2 Enterprise LLC’s Oct. 20 announcement that it has cancelled plans for its proposed Heartland Greenway CO2 pipeline undertaking. Valero was anticipated to be an anchor shipper of CO2 on the pipeline. “We nonetheless see carbon seize and storage as a strategic alternative to cut back the carbon depth of standard ethanol,” Bhullar stated, noting that CCS is required to offer ethanol with a pathway to SAF below present insurance policies. “We proceed to judge different initiatives to sequester CO2,” he added.
Total, Valero reported internet earnings attributable to Valero stockholders of $2.6 billion, or $7.29 per share, for the third quarter, in comparison with $2.8 billion, or $7.19 per share, for a similar interval of final 12 months.
