DALLAS -- Despite a bad fourth quarter—"the worst quarter in the history of the company"—the refiner-marketer had the "second best year in [its] history," said Alon USA Energy Inc. president and CEO Jeff Morris. And its board has approved plans for an initial public offering (IPO) related to its retail and marketing businesses, expected by yearend. The board also authorized more merger and acquisition (M&A) activities.
Alon USA Energy Inc. has announced results for the quarter ended Dec. 31, 2007. Net loss for fourth-quarter 2007 was $39.9 million, or a loss of 85 cents [image-nocss] per share, compared to net income of $22 million or income of 47 cents per share for the same period last year. Excluding special items, Alon recorded a net loss of $41.5 million or a loss of 89 cents per share for fourth-quarter 2007, compared to net income of $26 million or income of 56 cents per share for the same period last year.
Net income for the year ended Dec. 31, 2007, was $103.9 million, or $2.22 per share, compared to $157.4 million or $3.37 per share for the same period last year. Excluding special items, net income for the year ended Dec. 31, 2007, was $99.5 million or $2.13 per share compared to $138.5 million or $2.96 per share for the same period last year.
Jeff Morris, Alon USA's president and CEO, said, "The fourth quarter was a challenging quarter as earnings were negatively affected by record crude oil prices, which resulted in the worst quarter in the history of the company; however, 2007 was the second best year in the history of the company. In 2007 we set throughput records at each of our refineries and reached new sales levels in both our asphalt and convenience retail segments. We believe that the overall increase in sales by almost 50% year over year is a reflection of the potential and the future growth of our company."
He continued, "On Feb. 18, 2008, the Big Spring [Texas] Refinery experienced a major fire. We believe we are adequately insured and are aggressively working to re-establish production at the facility. We are very proud of the performance of all Big Spring personnel and emergency responders which helped to limit the severity of injuries and damage to our equipment. Importantly, no major vessels, compressors, or motors will require replacement. We are currently ahead of our own internal schedule and continue to be optimistic about returning to the first stage of operation, producing gasoline, diesel and asphalt by the end of March.
Morris added, "In addition, our board of directors has approved plans for an [IPO] related to our retail and marketing businesses, which we will seek to complete by yearend. Our board of directors has also instructed us to continue to pursue the M&A activities we are currently evaluating. In sum, while we will be working hard to repair our Big Spring refinery, these efforts will not lessen our focus on opportunities to further our growth strategies."
Alon USA, Dallas, is an independent refiner and marketer of petroleum products, operating primarily in the southcentral, southwestern and western regions of the United States. It owns and operates four sour and heavy crude oil refineries in Texas, California and Oregon, with an aggregate crude oil throughput capacity of approximately 170,000 barrels per day. It markets gasoline and diesel products under the FINA brand name and is a leading producer of asphalt. Alon USA also operates more than 300 convenience stores in West Texas and New Mexico substantially under the 7-Eleven and FINA brand names and supplies motor fuels to these stores primarily from its Big Spring refinery. In addition, Alon supplies approximately 780 additional FINA branded stations.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.