Delek Group Ltd. (TASE: DLEKG) subsidiary Delek US Holdings Inc. (NYSE:DK) tripled its net profit on higher revenue for the second quarter, beating the analysts' forecasts. Revenue rose to $1.85 billion for the second quarter from $998 million for the corresponding quarter of 2010.
Net profit from continuing operations more than tripled to $54.9 million ($0.96 per share) for the second quarter from $15 million for the corresponding quarter. Non-GAAP net profit from continuing operations rose to $45.7 million ($0.80 per share for the second quarter from $12.3 million for the corresponding quarter. The non-GAAP net profit excludes a $9.2 million capital gain on Delek US's investment in Lion Oil Company, which Delek US now includes in its financial reports.
Delek US beat the analysts' consensus of $0.69 earnings per share on $1.22 billion revenue.
Delek US's refining revenue totaled $1.16 billion for the second quarter. The refining operations' contribution margin rose to $110.4 million for the second quarter from $38.7 million for the corresponding quarter. The company's Tyler refinery contribution margin was $82.9 million and Lion Oil's El Dorado refinery's contribution margin was $27.5 million.
Retail revenue was $497 million, but its contribution margin fell to $14.6 million for the second quarter from $18.1 million for the corresponding quarter, which the company attributed to lower fuel demand due to higher prices.
Delek US Uzi Yemin said, “Entering the third quarter, our refining system has continued to benefit from a combination of stronger refined product margins and a further widening in crude price differentials, when compared to the first half of 2011."
Delek US had $148.2 million in cash and $459.1 million in debt at the end of June, resulting in a net debt position of $310.9 million.
Delek US's share price fell 1% yesterday to $15.53, giving a market cap of $897 million.
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