Stacey Morris, Investor Relations Manager
Alon USA Energy, Inc.
FOR IMMEDIATE RELEASE
Investors: Jack Lascar
Dennard § Lascar Associates, LLC
Media: Blake Lewis
Lewis Public Relations
Alon USA Energy, Inc. Reports First Quarter 2016 Results
Declares Quarterly Cash Dividend
Schedules conference call for May 5, 2016 at 11:30 a.m. Eastern
DALLAS, TEXAS, May 4, 2016 - Alon USA Energy, Inc. (NYSE: ALJ) (“Alon”) today announced results for the first quarter of 2016. Net loss available to stockholders for the first quarter of 2016 was $(35.5) million, or $(0.51) per share, compared to net income available to stockholders of $26.9 million, or $0.39 per share, for the same period last year. Excluding special items, Alon recorded net loss available to stockholders of $(29.2) million, or $(0.42) per share, for the first quarter of 2016, compared to net income available to stockholders of $20.9 million, or $0.30 per share, for the same period last year.
Paul Eisman, President and CEO, commented, “Our first quarter results were negatively impacted by depressed crack spreads, narrow crude differentials and by planned downtime at our Big Spring refinery, which included completing a reformer regeneration and a catalyst replacement for our diesel hydrotreater unit. The average benchmark crack spreads were approximately $6.50 per barrel lower than the average from the first quarter 2015. It is not unusual for us to experience margin weakness in the first quarter, and we are encouraged by improvements in the benchmark crack spreads going into the second quarter. Demand for gasoline is strong, and distillate demand is improving. We’ve also seen some improvement in the Midland differentials, which should support improved refinery profitability.
“The Big Spring refinery achieved a refinery operating margin of $7.77 per barrel and direct operating expense of $4.07 per barrel in the first quarter. We expect total throughput at the Big Spring refinery to average approximately 74,000 barrels per day for the second quarter and 73,000 barrels per day for the full year of 2016.
“The Krotz Springs refinery’s results were also negatively impacted by weakness in crack spreads and narrow crude differentials. During the first quarter we elected to reduce the crude rate to improve the refinery yield structure and averaged just over 63,000 barrels per day of crude and 71,500 barrels per day of total throughput. In April, we performed maintenance on the fluid catalytic cracking unit at Krotz Springs, which reduced total throughput for the month. Based on the projected margin environment, we expect total throughput at the Krotz Springs refinery to average approximately 64,000 barrels per day for the second quarter and 72,000 barrels per day for the full year of 2016.
“Our retail business was negatively affected by economic conditions in the Permian Basin mostly offset by good performance in our newly constructed and acquired stores. As we move into spring, we see seasonally improved fuel and merchandise demand with resulting improved profitability.
“We were pleased with the performance of our asphalt segment in the first quarter, which is a seasonally weak quarter for asphalt demand. Relative to the first quarter of 2015, our asphalt sales volumes were up 37 percent, and our asphalt margin was $84 per ton. We maintain a positive outlook for this business as we head into the 2016 paving season based on improving demand in our markets and better efficiency within our business.
“In February, production began at AltAir, a renewable fuels project located at our southern California refinery, in which we own a majority interest. AltAir contributed operating income of $7.2 million in the first quarter. Based on current market conditions and operations consistent with our plan, it is our expectation that the operating income of AltAir will substantially offset the operating loss of our California refineries in 2016.”
The following information was filed by Alon Usa Energy, Inc. (ALJ) on Thursday, May 5, 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-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.