Valero Energy Corp. on July 24 released second quarter results, reporting a profitable three-month period for its ethanol segment. The renewable diesel segment posted a loss, but the company’s new sustainable aviation fuel (SAF) unit operated well.
Valero’s ethanol segment reported $54 million in operating income for the second quarter, down from $105 million reported for the same period of last year. Ethanol production values averaged 4.6 million gallons per day.
The renewable diesel segment, which consists of the Diamond Green Diesel joint venture, reported an operating loss of $79 million for the second quarter, compared to operating income of $112 million reported for the same quarter of last year. Segment sales volumes averaged 2.7 million gallons per day.
DGD in 2024 completed a project to add SAF capacity to its Port Arthur plant in Texas. The SAF project, which gives the plant optionality to upgrade approximately 50% of its current 470 MMgy production capacity to SAF, was fully operational by January 2025.
During a second quarter earnings call, Eric Fischer, senior vice president of product supply, trading and wholesale at Valero, confirmed that the SAF project operates well. He also noted that “the logistics and blendability have been a positive” and that “the ability to move [SAF] through the Valero jet fuel system has been very effective.” The one downward surprise cited by Fischer is lower than expected market interest in SAF, particularly from airlines. “I think everyone is still feeling out this market,” he said, noting that the company could see sales pick up during the second half of the year due to demand created by European SAF mandates.
Moving into the third quarter, Valero Vice President of Investor Relations Homor Bhullar said ethanol production values are expected to continue to average 4.6 million gallons per day. For the full year 2025, sales for the renewable diesel segment are expected to reach approximately 1.1 billion gallons, reflecting lower production volumes due to economics, Bhullar continued.
Overall, Valero reported net income attributable to Valero stockholders of $714 million, or $2.28 per share, for the second quarter of 2025, compared to a net income of $880 million, or $2.71 per share, for the same period of last year.
