Valero reports record Iowa ethanol results

Source: Dan Piller • Des Moines Register  • Posted: Thursday, February 2, 2012

Valero bought the Albert City ethanol plant from VeraSun in 2009

Valero Energy of San Antonio, which owns ethanol production plants at Fort Dodge, Albert City, Hartley and Charles City, reported record results from its ethanol production in 2011.

The company said “Valero’s ethanol segment reported its highest quarter ever with $181 million in operating income, versus $70 million in the fourth quarter of 2010. The increase in ethanol operating income was mainly due to higher gross margins and an increase in production volumes to a record-high quarterly average of 3.5 million gallons per day. The ethanol segment also set an annual record with $396 million in operating income in 2011.”

Valero announced the ethanol results as part of its fourth quarter and annual earnings report. The oil refining and gasoline retailing company said its earnings in the fourth quarter ending Dec. 31 dropped to $167 million compared to $378 million a year earlier due to a decrease of $1.84 per barrel in the crude oil refining throughput margin, particularly in the Gulf Coast region where the throughput margin decreased by $4.21 per barrel.

Valero operates 16 crude oil refineries and ten ethanol plants, four in Iowa. The company bought the Iowa plants in 2009 from the bankrupt VeraSun Energy Co.

For the full year 2011 Valero’s profit was $2.1 billion, or $3.69 per share, versus $923 million, or $1.62 per share for the year ended December 31, 2010.

Valero chairman Bill Klesse said “although the fourth quarter clearly showed the volatility of the refining business, 2011 was a great year for Valero.” said Valero Chairman and CEO Bill Klesse.