Par Petroleum Corporation has reported 4Q14 net income of US$31.7 million, or US$0.84 per diluted share, compared with a net loss of US$50.5 million, or US$1.66 per share, in 4Q13. Losses were US$47.0 million, or US$1.44 per share, for the full year 2014, compared with a loss of US$79.2 million, or US$4.01 per share, in 2013. 4Q14 adjusted EBITDA was US$47.2 million compared to an adjusted EBITDA loss of US$30.6 million for 4Q13. The full year adjusted EBITDA was a loss of US$9.2 million for 2014, compared with a loss of US$30.9 million for 2013.
Joseph Israel, Par Petroleum's President and CEO, commented: "Positive fourth quarter adjusted EBITDA of US$47.2 million is a strong finish for a challenging, but successful, year for the company primarily driven by improving operations and market conditions. In 2014, we focused a tremendous amount of energy on building a company around our Hawaii refining and marketing business. After the early termination of the Tesoro transition services agreement, hiring people and repositioning ourselves in the market, we reached a steady and comfortable mode of operations in the fourth quarter. We are now shifting gears toward optimisation and growth. The US$107 million Mid Pac acquisition is expected to close on 1 April, which will add 86 retail locations to our network. In addition, recognising Piceance's unique competitive position, the company has elected to invest an additional US$28 million to capture drilling and growth opportunities."
For 4Q14, net cash provided by operations totalled US$24.5 million. During the period, Par repaid US$25.1 million of debt, net of borrowings (gross repayments were US$91.3 million net of US$66.2 million of borrowings). As of 31 December 2014, Par's cash balance totalled US$89.2 million, debt totalled US$136.6 million and total liquidity was US$190.5 million.
"Market conditions continue to be favourable in the first quarter and our estimated refinery throughput is 75 000 - 78 000 bpd. In addition, we have hedged our internally consumed plant utility crude and anticipate saving approximately US$15 million in 2015 compared to 2014 on similar pricing levels," noted Israel.
Adapted from press release by Rosalie Starling
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