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Valero CEO sees Q2 biofuel costs as a "significant headwind"

Published 04/25/2017, 11:58 AM
© Reuters.  Valero CEO sees Q2 biofuel costs as a "significant headwind"
VLO
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  • Valero Energy (NYSE:VLO) sinks ~2.5% as Chairman and CEO Joe Gorder says he expects costs for renewable fuel credits to drag on the company's returns in Q2.
  • "While RIN prices have declined relative to 2016, there is still a significant headwind for the quarter... At this level, RINs expense remain an issue for us, so we continue to work with regulators," Gorder says in this morning's earnings conference call.
  • Gary Simmons, VLO senior VP of international operations and system optimization, said during the call that VLO is not ready to revise its forecast for RINs for 2017; VLO has said it expects to spend an amount similar to the $749M spent in 2016 to meet U.S. renewable fuel requirements.
  • VLO's Q1 earnings came in ahead of estimates; Q1 biofuel blending costs were $146M, which was $15M lower than in the year-ago quarter.
  • Now read: Is Valero Worthy Of Additional Shares In A Portfolio Now?


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