30 April 2013 23:08 [Source: ICIS news]
HOUSTON (ICIS)--US refiner Valero reported on Tuesday that its ethanol business had a 56% year-on-year increase in operating income due to higher gross margins per gallon, the company said.
The ethanol segment had operating income of $14m (€10.6m), compared with $9m in the same quarter a year ago.
Production averaged 2.5m gal/day (9.4m litres/day) for the first quarter, a decline of 770,000 gal/day from the first quarter of 2012.
“As industry supplies of ethanol decline throughout the first quarter … margins improved and have remained healthy so far into the second quarter,” said Ashley Smith, Valero’s vice president, investor relations.
Valero expects total throughput volumes of ethanol to reach 3.4m gal/day, as operating expenses should average 37 cents/gal.
Valero has 10 ethanol plants that are now all operating. The company had idled three of them because of poor margins.
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