Delek US Holdings, Inc. (DK) swung to a net profit for the quarter ended Dec. 31, 2016. The company has made a net profit of $44.20 million, or $ 0.72 a share in the quarter, against a net loss of $31.50 million, or $0.51 a share in the last year period. On the other hand, adjusted net loss for the quarter widened to $27.70 million, or $0.44 a share from a loss of $4.30 million or $0.07 a share, a year ago.
Revenue during the quarter dropped 3.42 percent to $1,084.60 million from $1,123 million in the previous year period. Gross margin for the quarter contracted 166 basis points over the previous year period to 7.23 percent. Operating margin for the quarter stood at negative 4.07 percent as compared to a negative 1.49 percent for the previous year period.
Operating loss for the quarter was $44.10 million, compared with an operating loss of $16.70 million in the previous year period.
Uzi Yemin, chairman, president and chief executive officer of Delek US stated, "We are moving forward with the next stage of our growth to complete the acquisition of the remaining outstanding common stock of Alon. This combination will create a refining company with approximately 300,000 barrels per day of crude throughput capacity and current logistical access to approximately 200,000 barrels per day of Permian Basin sourced crude. In addition, we should be able to unlock approximately $78 million of logistics EBITDA through future potential dropdowns and use our logistics platform to support the larger Permian based system created by this transaction. We believe that the closing of this strategic combination will result in a larger, more diverse company that is well positioned to take advantage of opportunities in the market and better navigate the cyclical nature of our business."
Operating cash flow improves significantly
Delek US Holdings, Inc. has generated cash of $268.20 million from operating activities during the year, up 49 percent or $88.20 million, when compared with the last year.
Cash flow from investing activities was $180.50 million from investing activities during the year as against cash outgo of $460.40 million in the last year.
The company has spent $61.70 million cash to carry out financing activities during the year as against cash inflow of $138.50 million in the last year period.
Cash and cash equivalents stood at $689.20 million as on Dec. 31, 2016, up 139.97 percent or $402 million from $287.20 million on Dec. 31, 2015.
Debt moves up marginally
Delek US Holdings, Inc. has witnessed an increase in total debt over the last one year. It stood at $832.90 million as on Dec. 31, 2016, up 3.44 percent or $27.70 million from $805.20 million on Dec. 31, 2015. Total debt was 27.90 percent of total assets as on Dec. 31, 2016, compared with 24.22 percent on Dec. 31, 2015. Debt to equity ratio was at 0.61 as on Dec. 31, 2016, up from 0.59 as on Dec. 31, 2015.
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