Delek US Holdings, Inc. (DK) swung to a net profit for the quarter ended Mar. 31, 2017. The company has made a net profit of $11.20 million, or $ 0.18 a share in the quarter, against a net loss of $29.20 million, or $0.47 a share in the last year period. On an adjusted basis, net profit for the quarter stood at $10.10 million, or $0.16 a share compared with a net loss of $53.40 million, or $0.86 a share in the last year period. Revenue during the quarter surged 33.42 percent to $1,182.20 million from $886.10 million in the previous year period. Gross margin for the quarter expanded 446 basis points over the previous year period to 12.39 percent. Operating margin for the quarter period stood at positive 2.52 percent as compared to a negative 1.53 percent for the previous year period.
Operating income for the quarter was $29.80 million, compared with an operating loss of $13.60 million in the previous year period.
Uzi Yemin, chairman, president and chief executive officer of Delek US stated, "Late in the first quarter, we experienced improving market conditions as the Gulf Coast 5-3-2 crack spread increased and Midland sourced crude moved to a discount to Cushing as we entered the second quarter. The improving drilling activity and crude oil production in the Permian Basin has several positive effects on our operations. There is the potential for our refining operations to benefit from a widening discount of Permian sourced crude to Cushing and improved economics for crude gathering as crude oil production rises. Our logistics segment has the potential to benefit through its west Texas wholesale business and the Paline Pipeline where volume should improve as wider crude discounts support shipping economics on that pipeline."
Operating cash flow turns negativeDelek US Holdings, Inc. has spent $42.10 million cash to meet operating activities during the quarter as against cash inflow of $71.90 million in the last year period. The company has spent $20.70 million cash to meet investing activities during the quarter as against cash outgo of $34.20 million in the last year period.
The company has spent $35 million cash to carry out financing activities during the quarter as against cash inflow of $10 million in the last year period.
Cash and cash equivalents stood at $591.40 million as on Mar. 31, 2017, up 69.02 percent or $241.50 million from $349.90 million on Mar. 31, 2016.
Working capital increases sharply
Delek US Holdings, Inc. has recorded an increase in the working capital over the last year. It stood at $448.40 million as at Mar. 31, 2017, up 156.96 percent or $273.90 million from $174.50 million on Mar. 31, 2016. Current ratio was at 1.49 as on Mar. 31, 2017, up from 1.21 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 1 days for the quarter from 13 days for the last year period. Days sales outstanding went down to 21 days for the quarter compared with 23 days for the same period last year.
Days inventory outstanding has decreased to 17 days for the quarter compared with 35 days for the previous year period. At the same time, days payable outstanding went down to 39 days for the quarter from 45 for the same period last year.
Debt comes down
Delek US Holdings, Inc. has recorded a decline in total debt over the last one year. It stood at $824.90 million as on Mar. 31, 2017, down 14.25 percent or $137.10 million from $962 million on Mar. 31, 2016. Total debt was 27.89 percent of total assets as on Mar. 31, 2017, compared with 29.10 percent on Mar. 31, 2016. Debt to equity ratio was at 0.60 as on Mar. 31, 2017, down from 0.73 as on Mar. 31, 2016. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
