Par Petroleum Corporation reported 1Q15 net income of US$0.5 million, or US$0.01 per diluted share, compared to net loss of US$14.6 million, or US$(0.48) per share in 1Q14. 1Q15 net income included a US$10.0 million negative impact from the contingent consideration under the Tesoro agreement and revaluation of common stock warrants, compared to a gain of US$4.0 million for 1Q14. Adjusted EBITDA for the first quarter was US$22.4 million compared to an adjusted EBITDA loss of US$9.1 million for 1Q14.
"Increased on island sales volume and refinery throughput have supported another positive quarter for Par Petroleum, with adjusted EBITDA of US$22.4 million. Progress continues across the board to optimise our operations, integrate the Mid Pac business and position Par for additional growth," said Joseph Israel, Par Petroleum's President and CEO.
Refinery operating margin was US$52.3 million for 1Q15 compared to US$19.1 million for the same period in 2014. For the quarter, improved Singapore and West Coast products markets generated a US$9.09/bbl 4-1-2-1 Mid Pacific crack spread, US$2.25/bbl more favourable than the 1Q14 average and US$0.87/bbl more favourable than 4Q14. Retail fuel sales volume increased 7% to 12.2 million gal. in 1Q15 from 11.3 million gal. in 1Q14.
"Market conditions continue to be favourable in the second quarter and refinery throughput is expected to push toward the 80 million bpd level," said Israel.
For 1Q15, net cash provided by operations totalled US$86.8 million and US$27.2 million of debt was repaid. As of 31 March 2015, Par's cash balance totalled US$124.3 million, debt totalled US$112.5 million and total liquidity was US$206.3 million.
Adapted from press release by Rosalie Starling
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