Thursday, May 5, 2011

Bethel Finances:Delek US swings to profit

www.bethelfinance.com

Bethel Finance news:

Delek Group Ltd. (TASE: DLEKG) subsidiary Delek US Holdings Inc. (NYSE:DK) swung to profit in the first quarter of 2011 on higher revenue. Revenue rose 28% to $1.14 billion for the first quarter from $892.9 million for the corresponding quarter of 2010.

Delek US posted a net profit from continuing operations of $16.9 million ($0.31 per share), compared with a net loss from continuing operations of $14.1 million for the corresponding quarter.

The company had $110.7 million in cash and $277.7 million in debt at the end of March, resulting in a net debt position of $167 million.

Delek US president and CEO Uzi Yamin attributed the first quarter results to significant improvement in Gulf Coast refining economics compared with the corresponding quarter. "Our refining segment generated more than $54 million in contribution margin during the first quarter 2011, as elevated refined product margins, an ongoing recovery in regional demand and reliable operations at our Tyler refinery contributed to profitability in the period."

In late April, Delek US closed its acquisition of 53.7% of Lion Oil Company from Ergon Inc., increasing its stake to 88.3%

Delek US's share price closed at $13.07 in New York yesterday, giving a market cap of $711 million. Delek Group's share price fell 1% by midday on the TASE today to NIS 868.20.

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