Valero: Q2 Refining Segment Operating Income DN vs 2Q23


   
    

    

   OAKHURST, N.J. (DTN) --- Valero Energy Corp.'s Refining segment reports 
second quarter operating income of $1.2 billion, down from $2.4 billion for the 
second quarter 2023 as refining margins fell to $3.05 billion from $4.22 
billion during the same period.

   Refining throughput volumes averaged 3.01 million bpd in the quarter 
profiled compared to 2.969 million bpd in the second quarter 2023.

   The Renewable Diesel segment, which consists of the Diamond Green Diesel 
joint venture, reported $112 million of operating income for the quarter 
reviewed, down from $440 million for the second quarter 2023. Segment sales 
volumes averaged 3.5 million gallons per day in the quarter, 908,000 gallons 
per day below the second quarter last year. Operating income for the quarter 
profiled was below a year ago due to lower sales volumes resulting from planned 
maintenance and lower renewable diesel margin.

   Valero's Ethanol segment reported $105 million of operating income for the 
second quarter compared to $127 million for the second quarter 2023. Ethanol 
production volumes averaged 4.5 million gallons per day for the period 
profiled, 31,000 gallons per day higher than the second quarter 2023.

   Capital investments totaled $420 million in the second quarter, of which 
$329 million was for sustaining the business, including costs for turnarounds, 
catalysts and regulatory compliance. Excluding capital investments attributable 
to the other joint venture member's share of DGD and other variable interest 
entities, capital investments attributable to Valero were $360 million.

   Valero reports the Sustainable Aviation Fuel project at the DGD Port Arthur 
plant is still expected to be operational in the fourth quarter, with a total 
cost of $315 million, half of which is attributable to Valero. The project is 
expected to give the plant the optionality to upgrade approximately 50% of its 
current 470 million gallon renewable diesel annual production capacity to SAF. 
With the completion of this project, DGD is expected to become one of the 
largest manufacturers of SAF in the world.




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