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Alon USA Energy net loss $14 million

Staff writer |
Alon USA Energy, Inc. announced results for the quarter and year ended December 31, 2013. Net loss available to stockholders for the fourth quarter of 2013 was $14 million, or $0.21 per share, compared to net income available to stockholders of $22.2 million, or $0.35 per share, for 2012.

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Excluding special items, Alon recorded net loss of $8 million, or $0.12 per share, for the fourth quarter of 2013, compared to net income of $36.1 million, or $0.58 per share, for 2012.

Net income available to stockholders for the year ended December 31, 2013 was $23.0 million, or $0.33 per share, compared to $79.1 million, or $1.29 per share, for 2012. Excluding special items, Alon recorded net income available to stockholders of $34.5 million, or $0.51 per share, for the year ended December 31, 2013, compared to $127.4 million, or $2.13 per share, for 2012.

Q4 Special items reduced earnings by $6 million for the fourth quarter of 2013 which included after-tax losses of $6.5 million associated with a prepayment premium and write-offs of unamortized original issuance discount and debt issuance costs recognized for the prepayment of a portion of the Alon Refining Krotz Springs senior secured notes, partially offset by $0.5 million associated with after-tax gains recognized on disposition of assets.

Special items reduced earnings by $13.9 million for the fourth quarter of 2012 which included after-tax losses of $17.0 million associated with write-offs of unamortized original issuance discount and debt issuance costs recognized for the prepayment of Alon USA Energy, Inc. term loans. These after-tax losses were partially offset by after-tax gains of $2.8 million associated with unrealized gains on commodity swaps and $0.3 million associated with gains recognized on disposition of assets.

The combined refinery average throughput for the fourth quarter of 2013 was 145,922 barrels per day (bpd), consisting of 73,613 bpd at the Big Spring refinery and 72,309 bpd at the Krotz Springs refinery, compared to a combined refinery average throughput of 154,410 bpd for the fourth quarter of 2012, consisting of 72,109 bpd at the Big Spring refinery, 72,235 bpd at the Krotz Springs refinery and 10,066 bpd at the California refineries.

The lower combined throughput rates were due to the California refineries not processing crude oil during the fourth quarter of 2013.

Refinery operating margin at the Big Spring refinery was $9.96 per barrel for the fourth quarter of 2013 compared to $25.26 per barrel for the same period in 2012. This decrease was mainly due to lower Gulf Coast 3/2/1 crack spreads and a narrowing WTI Cushing to WTS spread.

Also impacting the Big Spring refinery operating margin was $5.7 million of costs associated with RINs obligations for the fourth quarter of 2013. Refinery operating margin at the Krotz Springs refinery was $8.72 per barrel for the fourth quarter of 2013 compared to $10.36 per barrel for the same period in 2012. This decrease was mainly due to a narrowing of the LLS to WTI Cushing spread partially offset by higher Gulf Coast 2/1/1 high sulfur diesel crack spreads.

The average Gulf Coast 3/2/1 crack spread was $13.05 per barrel for the fourth quarter of 2013 compared to $27.10 per barrel for the fourth quarter of 2012. The average Gulf Coast 2/1/1 high sulfur diesel crack spread for the fourth quarter of 2013 was $12.61 per barrel compared to $9.03 per barrel for the fourth quarter of 2012.

The average WTI Cushing to WTS spread for the fourth quarter of 2013 was $3.14 per barrel compared to $5.14 per barrel for the same period in 2012. The average LLS to WTI Cushing spread for the fourth quarter of 2013 was $2.58 per barrel compared to $20.08 per barrel for the same period in 2012.

Asphalt margins for the fourth quarter of 2013 were $65.83 per ton compared to $26.84 per ton for the fourth quarter of 2012. On a cash basis (i.e. excluding inventory effects), asphalt margins in the fourth quarter of 2013 were $45.11 per ton compared to $13.17 per ton in the fourth quarter of 2012.

This increase was primarily due to lower costs of purchased asphalt sold during the fourth quarter of 2013 compared to the fourth quarter of 2012. The average blended asphalt sales price decreased 5.0% from $590.79 per ton in the fourth quarter of 2012 to $561.34 per ton in the fourth quarter of 2013 and the average non-blended asphalt sales price increased 3.6% from $347.25 per ton in the fourth quarter of 2012 to $359.58 per ton in the fourth quarter of 2013.

Retail fuel sales volume increased 7.3% to 47.2 million gallons in the fourth quarter of 2013 from 44.0 million gallons in the fourth quarter of 2012.


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