Valero’s Refining Segment Reports $2.1B Q1 Operating Loss

OAKHURST, N.J. (DTN) –- Valero Energy Corp.’s refining segment reported a $2.1 billion operating loss for the first quarter compared to $479 million operating income for the same quarter 2019. First quarter adjusted operating income, excluding the lower of cost or market inventory valuation adjustment, was $329 million.

Refinery throughput volumes for the first quarter averaged 2.8 million bpd, inline with the first quarter 2019.

The renewable diesel segment reported $198 million of operating income for the quarter profiled, up from $49 million in the first quarter 2019. After adjusting for the retroactive blender’s tax credit, renewable diesel operating income was $121 million for the first quarter 2019. Renewable diesel sales volumes averaged 867,000 gallons per day in the first quarter, 77,000 gpd higher than first quarter 2019.

Valero’s ethanol segment reported a $197 million operating loss for the first quarter compared to $3 million operating income for the first quarter 2019. The first quarter adjusted operating loss, excluding the LCM inventory valuation adjustment, was $69 million. The decrease in operating income was attributed primarily to lower ethanol prices and higher corn prices. Ethanol production averaged 4.1 million gpd in the first quarter, inline with first quarter 2019.

“It’s been a very challenging start to the year with significant impacts to families, communities and businesses world-wide brought on by the COVID-19 pandemic,” said Joe Gorder, Valero chairman and CEO. “Valero entered this economic downturn in a position of strengthen, and our team has been thorough, decisive and swift in our operational, financial and community support response.”