Delek US Holdings Reports First Quarter 2009 Results
BRENTWOOD, Tenn.--(BUSINESS WIRE)--May. 7, 2009-- Delek US Holdings, Inc. (NYSE: DK), a diversified energy company with assets in the petroleum refining, marketing and retail industries, today announced financial results for the first quarter 2009.
Results for the three months ended Mar. 31, 2009 were impacted by a fire at the Company’s Tyler, Texas refinery which occurred on Nov. 20, 2008. To date, the Tyler refinery has restarted most major units and is currently in the final phase of the refinery start-up process.
Delek US reported net income from continuing operations of $1.6 million, or $0.03 per diluted share, in the first quarter 2009, versus a net loss from continuing operations of $5.2 million, or ($0.10) per basic share, in the first quarter 2008. Excluding special items, the Company reported an adjusted net loss from continuing operations of $2.5 million, or ($0.05) per basic share.
During the first quarter 2009, Delek US recorded income of $30.6 million related to claims under the Company’s property damage and business interruption insurance policies. In addition, since the start of the second quarter 2009, the Company has received cash payments of $25 million and, to date, has received approvals for payments of an additional $18 million. The Company anticipates substantial additional insurance proceeds to be forthcoming as it finalizes claims.
Delek US estimates that the proceeds paid on business interruption claims generated during the first quarter 2009 should be positively impacted by a 5-3-2 Gulf Coast crack spread of $9.14, in addition to a significant deepening of the West Texas Intermediate (WTI) crude oil contango market structure, which averaged more than $4.50 during the first quarter 2009. As a refinery that purchases and processes WTI as its primary feedstock – currently one the cheapest sweet crudes in the world – Tyler is well positioned to benefit from a contango market structure which has continued into the second quarter 2009.
“We are pleased to announce that we have restarted most of the major units at our Tyler refinery and are currently producing and selling distillate products,” stated Uzi Yemin, President and Chief Executive Officer of Delek US. “Today, the Tyler refinery is more efficient and operationally versatile than ever before, due in large part to our considerable investment in a series of value enhancing capital projects which we began in November 2008. Having finished the turnaround and the bulk of the crude optimization projects, Tyler is well-positioned to remain a key profit center for Delek US, going forward.”