Valero Energy Corp. released first quarter financial results on April 24, reporting that a tough margin environment negatively impacted the company’s renewable diesel operations during the three-month period. Valero’s ethanol segment was profitable. 

The renewable diesel segment, which consists of the Diamond Green Diesel joint venture, reported sales volumes of 2.43 million gallons per day during the first quarter, down from 3.73 million gallons per day during the first quarter of last year. Valero primarily attributed the decreased sale volumes to planned maintenance activities at the DGD St. Charles refinery in Louisiana.  

According to Valero, the renewable diesel segment generated $493 million in revenues from external customers during the first quarter, including $391 million from renewable diesel, $39 million from renewable naphtha and $63 million from neat sustainable aviation fuel (SAF). Total revenues for the segment reached $702 million during the first quarter of 2024, with $697 million attributed to renewable diesel and $23 million attributed to renewable naphtha. The segment did not begin producing SAF until late 2024.

The renewable diesel segment reported an operating loss of $141 million for the first quarter, compared to an operating income of $190 million for the same period of 2024. The decrease is attributed to reduced production volumes and higher feedstock costs. 

During a first quarter earnings call, Valero Vice President of Investor Relations and Finance Homer Bhullar said the company currently expects sales volumes for the renewable diesel segment to be approximately 1.1 billion gallons for the full year 2025, reflecting lower production volumes due to economics.

The ethanol segment produced 4.47 million gallons per day during the first quarter of 2025, unchanged when compared to the same period of 2024.

The ethanol segment reported $1.01 billion in revenues from external customers for the first quarter, including $787 million from ethanol and $221 million from distillers grains. Segment revenues for the same period of 2024 reached $914 million, including $638 million for ethanol and $276 million from distillers grains.

According to Valero, the ethanol segment reported $20 million in operating income for the first quarter, up from $10 million during the same period of last year. Adjusted operating income was $20 million, down from $39 million. The company attributed the decrease in adjusted operating income to higher corn prices, lower corn related coproduct prices, and higher operating expenses, which were partially offset by higher ethanol prices. 

Moving into the second quarter of 2025, Bhullar said he expects ethanol production volumes to increase slightly, reaching 4.6 million gallons per day. 

Overall, Valero reported a net loss attributable to stockholders of $595 million, or $1.90 per share, for the first quarter, compared to net income of $1.2 billion, or $3.75 per share, for the same period of 2024.