Alon USA Energy posts 2Q15 net income of US$36.4 million

Alon USA Energy, Inc. has announced its results for 2Q15. Net income available to stockholders was US$36.4 million, or US$0.52 per share, compared to net loss available to stockholders of US$(7.5) million, or US$(0.11) per share, in 2Q14. Excluding special items, Alon recorded net income available to stockholders of US$46.4 million, or US$0.67 per share, for 2Q15, compared to net loss available to stockholders of US$(3.4) million, or US$(0.05)per share, for 2Q14.

Net income available to stockholders for 1H15 was US$63.3 million, or US$0.91 per share, compared to net loss available to stockholders of US$(6.7) million, or US$(0.10) per share, for 1H14. Excluding special items, Alon recorded net income available to stockholders of US$68.0 million, or US$0.98 per share, for 1H15, compared to net income available to stockholders of US$0.5 million, or US$0.01 per share, for 1H14.

"We are pleased with our strong results for the second quarter of 2015. The excellent performance from our refining and wholesale marketing segment was complemented by solid results from our retail segment. We were also pleased to see an improvement in our asphalt business for the quarter compared to the prior quarter and relative to the second quarter of 2014,” said Paul Eisman, President and CEO.

"The Big Spring refinery benefitted from its excellent operational performance and a favourable crack spread environment in the second quarter of 2015. Big Spring achieved a refinery operating margin of US$17.22/bbl and low direct operating expense of only US$3.54/bbl. The crude flexibility of the Big Spring refinery continues to be an advantage. The refinery processed approximately 44 000 bpd of WTI Midland during the second quarter of 2015 to set a new record for WTI Midland rate. On the product side, our wholesale marketing business successfully sold approximately 6000 bpd in June 2015 into the premium Arizona market.

"The performance at Krotz Springs in the second quarter continued to reflect improved operations and reliability. Krotz Springs generated a refinery operating margin of US$7.95/bbl and achieved low operating costs of US$3.49/bbl in the second quarter of 2015. The improvements in operations and reliability, coupled with strong crack spreads, have led to record profitability at Krotz Springs since we acquired the refinery, for both the six and twelve month periods ending 30 June 2015.

"Our retail business continues to perform well, and we remain focused on growing this business. During the quarter, we entered into an agreement to purchase 14 retail gas stations in the Albuquerque area. These stores fit well with our existing footprint in that market. The acquired stores are expected to immediately improve the profitability of our retail business and to be accretive to its value. This transaction is expected to close later this month.

"We expect total throughput at the Big Spring refinery to average approximately 74 000 bpd for the third quarter of 2015 and 74 000 bpd for the full year of 2015. We expect total throughput at the Krotz Springs refinery to average approximately 71 000 bpd for the third quarter of 2015 and 67 000 bpd for the full year of 2015 due to the turnaround scheduled in the fourth quarter of 2015."

Adapted from press release by Rosalie Starling

Read the article online at: https://www.hydrocarbonengineering.com/refining/04082015/alon-usa-energy-posts-2q15-net-income-of-us364-million-1232/