One year after reporting quarterly net income of $361.8 million, Delek US Holdings saw a loss of $8.3 million in second-quarter 2023. The refiner, distributor and retailer saw its refining segment earnings decline by more than half, while its logistics and retail segments saw increases compared to the same period in 2022.
Still, President and CEO Avigal Soreq said in reporting the results, "Our refining segment had strong contributions driven from our wholesale and asphalt businesses supported by local market demand."
The results come from a period that was challenged simply by coming a year after gasoline prices hit a record average high of $5.10 per gallon, driving up income for gasoline businesses across the country. In second-quarter 2022, the retail price for a gallon of regular gasoline averaged $4.49 per gallon, compared to $3.58 this year, according to the U.S. Energy Information Administration (EIA).
For the first six months of the year, Delek reported earnings of $56.0 million, compared to $368.4 last year, demonstrating that the bulk of 2022 income came in the second quarter of the year.
- Delek US ranked No. 34 of CSP2023 Top 202 list of the largest c-store chains in the country.
In retailing, the company reported adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $15.0 million compared with $12.5 million in the prior-year period. The increase, it said, was primarily driven by higher fuel volume, increased average fuel margins and increased inside store sales.
In its quarterly presentation, Delek, which is currently rebranding its stores from 7-Eleven to its own DK brand, reported that it has committed 31 million to retail capital expenditures. Through the first half of the year, it has spent $8 million, the company reported.
In refining, adjusted EBITDA totaled $201.1 million in the second quarter 2023 compared with $463.1 million in the same quarter last year. The decrease is primarily due to lower refining crack spreads.
And in logistics, Delek reported adjusted EBITDA in the second quarter of $90.9 million compared with $69.0 million in the prior year.
Brentwood, Tennessee-based Delek US Holdings Inc. is a diversified downstream energy company with assets in petroleum refining, logistics, pipelines, renewable fuels and convenience-store retailing. The c-store retail segment operates approximately 247 stores in West Texas and New Mexico.
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