Valero Energy Corp. released third quarter financial results on Oct. 22. The company reported an overall net loss. Results for the company’s ethanol and renewable diesel segments, however, were improved when compared to the same period of 2019.

Valero’s ethanol segment reported $22 million in operating income for the three-month period, compared to a $43 million operating loss reported for the third quarter of 2019. The adjusted operating income was $36 million.

The company’s ethanol production volumes averaged 3.8 million gallons per day during the third quarter, down 206,000 gallons per day when compared to the same period of last year. The increase in operating income was attributed primarily to higher margins resulting from lower corn prices.

Valero’s renewable diesel segment reported $184 million of operating income for the third quarter, up from $65 million during the same period of last year. After adjusting for the retroactive blender’s tax credit, renewable diesel operating income was $123 million for the third quarter of 2019.

Renewable diesel sales volumes averaged 870,000 gallons per day during the third quarter, up 232,000 gallons per day when compared to the same period of last year. Valero said the third quarter 2019 results and volumes were impacted by the planned downtime of the Diamond Green Diesel plant for maintenance. The company also noted the Diamond Green Diesel facility set a record for sales volumes during the third quarter of this year.

During a third quarter earnings call, Joseph Gorder, chairman and CEO of Valero, noted the company’s ethanol plants operated at 81 percent capacity during the third quarter, up from 49 percent during the second quarter of this year. Homer Bhullar, vice president of investor relations, said Valero’s ethanol production is expected to average 4.2 million gallons per day during the fourth quarter of this year, with an operating expense of approximately 37 cents per gallon.

Gorder also said Valero’s renewable diesel business remains resilient, noting that it achieved a margin of $2.72 per gallon during the third quarter. Sales volumes for the full year are expected to average 750,000 per day, Bhullar added, which reflects planned maintenance in October. Operating expenses for renewable diesel are expected at 45 cents per gallon.

Expansion of the Diamond Green Diesel plant is still expected to be complete next year, Gorder said. The expansion project will increase the facility’s production capacity by 400 MMgy, to 675 MMgy. In addition, he said Diamond Green Diesel continues to make progress on the advanced engineering review of its potential 400 MMgy renewable diesel plant at Valero’s Port Arthur, Texas, refinery.

Overall, Valero reported a net loss attributable to Valero stockholders of $464 million, or $1.14 per share, compared to a net income of $609 million, or $1.48 per share, for the same period of last year. Adjusted net loss attributable to Valero stockholders was $472 million, or $1.16 per share, compared to adjusted net income of $642 million, or $1.55 per share.