EL PASO, Texas -- Western Refining Inc. has reported net earnings of $238.6 million or $3.53 per diluted share for full-year 2007, versus net earnings of $204.8 million or $3.11 per diluted share for 2006. This is the second consecutive year that Western has reported record earnings. The increased earnings were primarily the result of higher refinery gross margins and increased refinery throughput.
The company reported a net loss of $25.5 million, or 38 cents per diluted share, for the quarter ended Dec. 31, 2007. For the same period in 2006, the company had net income of $50.9 million, [image-nocss] or 76 cents per diluted share.
Performance in the quarter was adversely impacted by rising crude oil prices throughout the quarter. This increase in feedstock costs, coupled with softness in finished product prices, particularly gasoline and lower-valued products, resulted in lower refining margins. Higher operating expenses also impacted earnings in the quarter.
"We are very pleased to have achieved a new record high in annual earnings for Western, despite the significant volatility in crude oil and finished product prices that impacted the industry throughout the year. During 2007, our El Paso refinery continued to have strong operating performance with total throughput increasing for the fifth consecutive year to its current level of approximately 134,000 barrels per day," said Paul Foster, Western Refining's president and CEO.
"We have taken a number of actions to improve the Yorktown and Gallup refineries so that the safety and reliability at those facilities are more consistent with our El Paso refinery. We have also implemented numerous operational changes at the former Giant refineries that will lead to improved performance," he added.
"The integration of the Giant assets is proceeding as planned. In the second half of 2007, we spent a significant amount of time and money at the refineries improving their safety and reliability. We believe that we have made wise investments in the future of these assets and that we are well positioned to begin reaping the benefits of our work at these facilities. Additionally, the integration of the wholesale and retail units with the overall operations of Western is proceeding nicely," said Foster.
Western Refining is an independent refining and marketing company based in El Paso, Texas. It has a refinery in El Paso, two refineries in the Four Corners region of northern New Mexico and a refinery in Yorktown, Va. Western's asset portfolio also includes refined products terminals in Albuquerque, N.M., and Flagstaff, Ariz.; approximately 160 retail gas stations and convenience stores in Arizona, Colorado and New Mexico; a fleet of crude oil and finished product truck transports; and wholesale petroleum products operations in Arizona, California, Colorado, Nevada, New Mexico, Texas and Utah.Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.