Delek US Holdings Turns To Profit In Q3, Beats View - Quick Facts

(RTTNews) - Delek US Holdings, Inc. (DK) Wednesday reported third-quarter net income attributable to the company of $72.5 million or $1.22 per share, compared to net loss of $1.7 million or $0.03 per share in the same period last year.

On average, 12 analysts polled by Thomson Reuters expected the company to earn $1.14 per share for the quarter. Analysts' estimates typically exclude special items.

The latest quarter's results reflect improved refining economics, including a wider discount between Midland WTI and Cushing WTI, increased throughput at the El Dorado refinery and a higher 5-3-2 Gulf Coast crack spread. In addition, results benefited from hedging gains that were partially offset by losses on inventory as market prices declined during the quarter.

Net sales for the quarter were $2.322 billion, compared to $2.321 billion in the same period last year. Analysts had a consensus revenue estimate of $2.22 billion.

Delek US board of directors declared its regular quarterly cash dividend of $0.15 per share. Shareholders of record on November 25, 2014 will receive this cash dividend payable on December 16, 2014.

During the first quarter 2015, the Tyler refinery will conduct its scheduled turnaround and replace the fluid catalytic cracking reactor. In addition, work has continued on a project to expand the crude nameplate capacity at the Tyler refinery by 15,000 barrels per day to 75,000 barrels per day.

The company expects the expansion project to cost about $70.0 million, of which approximately $34.0 million has been spent through September 2014. Both the turnaround, which is expected to commence in late January, and the expansion project are expected to be completed by mid-March.