Delek Group Ltd. (TASE: DLEKG) subsidiary Delek US Holdings Inc. (NYSE:DK) today reported higher profits on flat revenue for the third quarter of 2012.
Revenue rose to $2.24 billion for the third quarter from $2.21 billion for the corresponding quarter of 2011, and net profit rose to $100.3 million ($1.67 per share) from $85.3 million. The company said that it benefited from the benchmark Gulf Coast 5-3-2 crack spread average of $29.96 per barrel during the third quarter, which was similar to the corresponding quarter and higher than the average of $25.42 per barrel during the preceding quarter.
Delek US had a cash balance of $317.8 million and total debt of $372.6 million at the end of September. The company has reduced its net debt to $54.8 million from $205.4 million a year earlier, including repayment of a $38.5 million debt to a Delek Group affiliate during the third quarter.
Delek US president and CEO Uzi Yemin said that the expanded rail links at the company's El Dorado refinery in Arkansas and increased access to Western Texas Intermediate (WTI) linked crude in the company's refining system would enable it to improve its crude and feedstock flexibility in 2013 by increasing supplies of WTI Midland sourced crude oil that is trading today at more than $6 per barrel below WTI at Cushing.
Published by Globes [online], Israel business news - www.globes-online.com - on November 8, 2012
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