Delek US Holdings, Inc. (DK) swung to a net loss for the quarter ended Sep. 30, 2016. The company has made a net loss of $161.70 million, or $ 2.61 a share in the quarter, against a net profit of $18.70 million, or $0.29 a share in the last year period. On adjusted basis, net loss for the quarter stood at $11.30 million, or $0.18 a share compared with a net profit of $52.70 million, or $0.82 a share in the last year period.

Revenue during the quarter dropped 16.51 percent to $1,079.90 million from $1,293.50 million in the previous year period. Gross margin for the quarter contracted 29 basis points over the previous year period to 10.58 percent. Total expenses were 99.74 percent of quarterly revenues, up from 98.92 percent for the same period last year. That has resulted in a contraction of 82 basis points in operating margin to 0.26 percent.

Operating income for the quarter was $2.80 million, compared with $14 million in the previous year period.

Uzi Yemin, Chairman, president and chief executive officer of Delek US stated, "We remained focused on factors under our control to improve our operations. During the third quarter, our initiatives to reduce costs continued to provide benefits on a year-over-year basis, as both operating and G&A expenses declined. Our focus on cost and reliability were factors in operating expense per barrel of $3.65 in our refining system which declined by 9 percent on a year-over-year basis in the third quarter 2016. In logistics, the RIO joint venture crude oil pipeline in west Texas began operating in September and the Caddo joint venture crude oil pipeline is currently expected to be completed in January 2017."

Cash flow from investing activities was $97.60 million for the nine month period as against cash outgo of $411 million in the last year period.

Cash flow from financing activities was $4.20 million for the nine month period, down 97.05 percent or $138.20 million, when compared with the last year period.

Cash and cash equivalents stood at $315.30 million as on Sep. 30, 2016, down 13.92 percent or $51 million from $366.30 million on Sep. 30, 2015.
 

Working capital increases sharply
Delek US Holdings, Inc. has recorded an increase in the working capital over the last year. It stood at $388.80 million as at Sep. 30, 2016, up 51.64 percent or $132.40 million from $256.40 million on Sep. 30, 2015. Current ratio was at 1.38 as on Sep. 30, 2016, up from 1.31 on Sep. 30, 2015.

Cash conversion cycle (CCC) has decreased to 4 days for the quarter from 15 days for the last year period. Days sales outstanding went up to 20 days for the quarter compared with 18 days for the same period last year.

Days inventory outstanding has decreased to 18 days for the quarter compared with 34 days for the previous year period. At the same time, days payable outstanding went up to 42 days for the quarter from 38 for the same period last year.