Northern Tier Energy LP Q3 Profit Miss View, But Revenues Top; Shares Down 6%

(RTTNews) - Independent downstream energy company Northern Tier Energy LP (NTI) reported Monday a profit for the third quarter that more than halved from last year, despite revenue growth, reflecting higher cost of sales. The results were also impacted by a 7 percent decline in refinery throughput and production due to unplanned downtime at the Saint Paul Park Refinery.

The company added that tightened crude oil price differentials and weaker local market pricing for both light and heavy products also contributed to the decrease.

Ridgefield, Connecticut-based company reported net income of $27.2 million or $0.30 per unit, compared to $61.1 million in the prior-year quarter. Adjusted EBITDA was $51.3 million, compared to $249.5 million.

On average, nine analysts polled by Thomson Reuters expected the company to report earnings of $0.43 per unit for the quarter. Analysts' estimates typically exclude special items.

Revenue for the quarter grew to $1.44 billion from $1.26 billion in the same quarter last year, and topped four Wall Street analysts' consensus estimate of $925.70 million.

Refining segment's operating income plunged to $27.8 million from $246.7 million in th eyear-ago quarter.

Total throughput for the quarter declined 7 percent to 81,168 barrels per day or bpd, from 87,476 bpd in the prior-year quarter. Production was 81,985 bpd, lower than last year's 88,413 bpd.

The declines were attributable to unplanned maintenance activities which resulted in downtime at the St. Paul Park refinery for a portion of the latest quarter.

Meanwhile, sales volumes increased to 96,277 bpd from 94,105 bpd a year ago.

Retail operating income was $4.4 million, higher than $1.2 million in the year-ago quarter. Fuel margins were $0.19 per gallon, up from $0.12 per gallon last year.

Further, the Board of Northern Tier Energy GP LLC, the general partner of Northern Tier Energy LP, approved a third-quarter cash distribution of $0.31 per unit, payable on November 27 to common unit holders of record as of the close of business on November 21, 2013.

The company noted that all planned and unplanned maintenance work was completed as of mid-October, resulting in enhanced future throughput and distillate yield.

Looking ahead to the fourth quarter, Northern Tier Energy projects total throughput between 80,000 and 85,000 bpd at the Saint Paul Park Refinery and sales between 82,500 and 87,500 bpd. Total capital expenditures are seen at $20 million.

NTI closed Monday's regular trading session at $23.26, up $0.59 or 2.60% on a volume of 1.17 million shares. However, the stock dropped $1.41 or 6.06% in after-hours trading.