Wedoany.com Report-Oct. 24, Valero Energy Corp., based in San Antonio, Texas, announced its third-quarter results on October 23, 2025, highlighting strong performance in its ethanol segment driven by record-high production. The renewable diesel segment, which includes sustainable aviation fuel (SAF), reported a loss for the same period.

The ethanol segment recorded $183 million in operating income for the third quarter, an increase from $153 million in the same period of 2024. Valero attributed this growth to higher prices for ethanol and corn-related co-products, along with increased production volumes. These gains were partially offset by elevated corn prices and higher operating expenses. Ethanol production reached an average of 4.6 million gallons per day, up by approximately 51,000 gallons per day compared to the third quarter of 2024. For the first nine months of 2025, production averaged 4.6 million gallons per day, a rise of 54,000 gallons per day from the same period in 2024.

During an earnings call, Homer Bhullar, Valero’s Vice President of Investor Relations and Finance, stated: “The company’s ethanol segment is expected to continue to produce 4.6 million gallons per day during the fourth quarter.”

In contrast, the renewable diesel segment, operated through the Diamond Green Diesel joint venture, reported an operating loss of $28 million for the third quarter, compared to a $35 million operating income in the same period of 2024. The decline was primarily due to higher feedstock costs and lower sales volumes, though higher product prices, particularly for renewable diesel, mitigated some impact. Sales volumes for the renewable diesel segment averaged 2.7 million gallons per day in the third quarter, down 827,000 gallons per day from 3.5 million gallons per day in 2024. For the first nine months of 2025, sales averaged 2.6 million gallons per day, a decrease of 959,000 gallons per day from 3.6 million gallons per day in 2024.

Third-quarter revenues from external customers in the renewable diesel segment totaled $719 million, including $623 million from renewable diesel, $29 million from renewable naphtha, and $67 million from neat SAF. This compares to $632 million in the third quarter of 2024, with $610 million from renewable diesel and $22 million from renewable naphtha, and no SAF revenue reported. Bhullar noted: “Valero expects sales volumes for the renewable diesel segment to be at approximately 258 million gallons for the fourth quarter, reflecting lower production due to economics.”

These results reflect Valero’s ongoing efforts to optimize its ethanol operations while navigating challenges in the renewable diesel market. The company continues to focus on production efficiency and market adaptability to support sustainable energy solutions.