Stacey Hudson, Investor Relations Manager
Alon USA Energy, Inc.
FOR IMMEDIATE RELEASE
Investors: Jack Lascar/Stephanie Zhadkevich
Dennard § Lascar Associates, LLC
Media: Blake Lewis
Lewis Public Relations
Alon USA Energy Reports Fourth Quarter and Full Year 2015 Results
Schedules conference call for February 25, 2016 at 12:00 p.m. Eastern
DALLAS, TEXAS, February 24, 2016 - Alon USA Energy, Inc. (NYSE: ALJ) (“Alon”) today announced results for the fourth quarter and year ended December 31, 2015. Net loss available to stockholders for the fourth quarter of 2015 was $(52.5) million, or $(0.75) per share, compared to net income available to stockholders of $6.7 million, or $0.10 per share, for the same period last year. Excluding special items, Alon recorded net loss available to stockholders of $(14.6) million, or $(0.21) per share, for the fourth quarter of 2015, compared to net loss available to stockholders of $(0.2) million, or $0.00 per share, for the same period last year.
Net income available to stockholders for the full year 2015 was $52.8 million, or $0.76 per share, compared to net income available to stockholders of $38.5 million, or $0.56 per share, for 2014. Excluding special items, Alon recorded net income available to stockholders of $95.5 million, or $1.37 per share, for the full year 2015, compared to net income available to stockholders of $38.1 million, or $0.55 per share, for 2014.
Paul Eisman, President and CEO, commented, “We are pleased with our overall operational and financial performance in 2015. We achieved the second highest annual adjusted EBITDA in our company’s history, increased our regular dividend by 50% from $0.40 to $0.60 per annum and reduced our interest expense in 2015 by over $30 million compared to 2014. As a result, we reduced our net debt to $322 million, despite high capital spending of over $160 million, substantially related to capital expenditures and turnaround costs. With the Krotz Springs turnaround successfully completed in the fourth quarter of 2015 and the Big Spring turnaround executed in 2014, our assets are prepared to run well in the coming years. Our next major turnaround will not occur until 2019, allowing us to focus on our growth initiatives at both facilities.
“The Big Spring refinery ran well in 2015, setting a new total throughput record for the year. In the fourth quarter, the Big Spring refinery achieved total throughput of approximately 76,000 barrels per day and refinery operating margin of $10.02 per barrel. Relative to the third quarter of 2015, the Big Spring refinery’s fourth quarter results were negatively impacted by seasonal weakness in crack spreads. Also, an outage at Big Spring’s alkylation unit in the quarter impacted gasoline yields and direct operating expenses which were higher than planned at $3.88 per barrel. We also completed a reformer regeneration and catalyst replacement for our diesel hydrotreater unit in the beginning of the first quarter of 2016, which we had postponed from the third quarter of 2015.
“During the fourth quarter of 2015, we successfully completed the planned major turnaround at the Krotz Springs refinery. The turnaround negatively impacted total throughput, which was 41,000 barrels per day, direct operating expense and refinery operating margin. The refinery operating margin was also impacted by the seasonal weakness in crack spreads. In conjunction with the turnaround, we invested nearly $15 million in reliability improvements at the refinery. We continue to progress with our plans to add a sulfuric acid alkylation unit at Krotz Springs.
“Our retail business performed well in 2015 but faced headwinds in the fourth quarter. In addition to seasonal weakness, our performance suffered from severe weather conditions in our markets and weakness in the Midland/Odessa area due to lower economic activity. In October, we opened a new large-format store in El Paso. The performance of the 14 Albuquerque locations acquired in August has exceeded our expectations.
The following information was filed by Alon Usa Energy, Inc. (ALJ) on Thursday, February 25, 2016 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.