29 January 2013 16:15 [Source: ICIS news]
HOUSTON (ICIS)--US Valero reported on Tuesday a 93% decline in fourth-quarter operating income for its ethanol segment.
The US-based refiner had $12m (€8.9m) in operating income for the fourth quarter, compared with $181m in the same period in 2011.
For the full year 2012, Valero swung to a loss of $47m, compared with income of $396m in 2011, a decrease of 112%.
”The decrease in ethanol operating income was due to significantly lower gross margins caused by a combination of high corn prices and high industry ethanol inventories attributable to lower ethanol and gasoline demand,” the company said. “Due to poor margins, Valero operated its ethanol capacity at reduced rates with three plants temporarily idled.”
Valero’s ethanol production also declined in the fourth quarter and full-year 2012.
For the fourth quarter, production fell by 23% to 2.664m bbl/day from 3.455m bbl/day. For the year, production fell by 13%, from 3.352m bbl/day to 2.967m bbl/day.
($1 = €0.74)
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