Valero Energy Corp. has released fourth quarter financial results, reporting the company’s ethanol segment earned $37 million of operating income during the final three months of last year, down from $126 million during the same period of 2016. The decrease is primarily attributed to margin pressure from lower ethanol prices.

Ethanol production volumes, however, averaged 4 million gallons per day during the fourth quarter, up 53,000 gallons when compared to the same period of last year.

For the full year, Valero reported $172 million of ethanol operating income, down from $340 million during 2016.

During an investor call, John Locke, vice president of investor relations, indicated that Valero expects its ethanol segment to continue to produce 4 million gallons per day during the first quarter of 2018.

Valero also reported that biofuel blending costs for the refining segment were $311 million during the fourth quarter, up $94 million when compared to the same quarter of the previous year. For the full year, biofuel blending costs reached $942 million, up $193 million when compared to 2016. Valero primarily attributed the increase to higher renewable identification number (RIN) prices.

Valero currently owns 11 ethanol plants with a combined capacity of 1.4 billion gallons per year. In addition to ethanol, the company also refines oil into gasoline, diesel and jet fuel, and produces a variety of specialty products.

Overall, Valero reported net income attributable to shareholders of $2.4 billion, or $5.42 per share, compared to $367 million, or 81 cents per share, during the same quarter of 2016. For the full year 2017 Valero reported net income attributable to stockholders of $4.1 billion, or $9.16 per share, compared to $2.3 billion, or $4.94 per share, in 2016.