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Surging ethanol credit costs hit refiners in Q2

  • Surging ethanol credit costs hit refiners in Q2, further squeezing profits already down because of higher crude oil prices.
  • PBF Energy (PBF) spent $37M on RINs in Q2 and another $32M in Q1, prompting CEO Tom O'Malley to say PBF can't absorb the costs and consumers will have to pay.
  • Last week, no. 1 refiner Valero (VLO) said it spent $125M on the credits during the quarter.
  • Refiners who do more of their own ethanol blending into refined fuels rather than leave it to third parties feel somewhat less pain; Western Refining (WNR) says it can cover ~85% of its own RIN obligations.
Comments (1)
  • what do I know
    , contributor
    Comments (1049) | Send Message
     
    We heard that XOM and Chevron reported lower earning because the crude price went down, and in this article we hear that "crude" went up. What is the story?
    2 Aug 2013, 10:08 AM Reply Like
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