Valero Energy Corp. has released financial results for the second quarter of 2013, reporting net income attributable to shareholders of $466 million. During the same period of last year, Valero reported net income attributable to shareholders of $831 million.

Valero’s ethanol segment reported operating income of $95 million in the second quarter of 2013 versus $5 million in the second quarter of 2012. Valero attributes the increase in operating income to a higher gross margin per gallon and higher production volumes.

During a call to discuss the financial results, Ashley Smith, vice president of investor relations at Valero, said that ethanol production averaged 3.5 million gallons per day during the quarter, an increase of 156,000 gallons per day compared to the production level of the same period of 2012. During the third quarter, Smith said ethanol production volumes are expected to reach 3.45 million gallons per day, with operating expenses averaging 38 cents per gallon.

During the question and answer period of the call, Bill Klesse chairman and CEO, addressed the renewable fuel standard (RFS) and renewable identification numbers (RINs). He said that as an ethanol producer, Valero thinks E10 and E85 should be part of the fuel mix, but that going to E15 is not practical. He also noted that in the preamble to RFS regulations the U.S. EPA said the price of RINs was not going to be significant, but would provide flexibility to the industry and allow the EPA a way to monitor the program. Klesse said that component of the program needs to be redone.