Surging Ahead
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Valero Energy disclosed thrilling news on Thursday regarding its Diamond Green Diesel plant in Port Arthur, Texas. The company anticipates commencing sustainable aviation fuel production ahead of schedule in the fourth quarter. According to Dow Jones, Valero is brimming with confidence that interest in the project will surpass its capacity expectations.
Rapid Transformations
Valero (NYSE:VLO) and its joint venture partner, Darling Ingredients (DAR), are poised to convert up to fifty percent of the plant’s 470 million gallon per year capacity to SAF, presenting an extraordinary opportunity to embrace sustainable practices while responding to escalating demand in the market.
During the company’s recent earnings conference call, Valero’s COO Gary Simmons highlighted the overwhelming commercial interest in the plant’s SAF production, indicating that the company is actively exploring the potential for another significant SAF undertaking.
Flourishing Prospects
The company’s optimism doesn’t end there. In an exciting turn of events, Valero announced that it foresees a surge in fuel exports to Mexico later this year, expected to coincide with the inauguration of a new import terminal at the port of Altamira, as reported by S&P Global.
Simmons further revealed that Valero is presently exporting approximately 100,000 barrels per day of gasoline and diesel to Mexico, confidently projecting robust and sustained demand in the region in the foreseeable future.
Market Resilience
While Valero (VLO) shares held steady during Thursday’s trading session, the company unveiled impressive Q1 adjusted earnings, despite a dip in margins from $5.9 billion to $3.53 billion in comparison to the same quarter last year.
Looking ahead, Valero articulated its strategy to operate its refineries at a staggering 95% of their total combined throughput capacity of 3.2 million barrels per day in the second quarter. This aggressive plan includes running their seven U.S. Gulf coast refineries at a remarkable 99% of their combined 1.9 million barrel per day throughput capacity.