Delek Group Ltd. (TASE: DLEKG) subsidiary Delek US Holdings Inc. (NYSE:DK) posted net profit from continuing operations of $15 million ($0.28 per share) for the second quarter of 2010, 49% less than the $29.6 million for the corresponding quarter. Adjusted net profit fell to $12.3 million ($0.23 per share) for the second quarter from $13 million for the corresponding quarter.
Revenue rose 62% to $997.7 million for the second quarter from $613.3 million for the corresponding quarter. The company also reported a final insurance payment of $17 million for damages from the fire at its Tyler Refinery in Texas in November 2008, bringing the total payment to $57.6 million. It also received a federal tax refund of $39.6 million.
Delek US attributed the slump in second quarter net profit from continuing operations to capital loss on the sale of three retail locations, accelerated depreciation resulting from the closure of six retail locations, and flood-related property damage resulting from storms in May that affected parts of Tennessee.
Delek US president and CEO Uzi Yemin said, “Our second quarter profitability was primarily attributable to a combination of strong demand for refined products in each of our operating segments, improved Gulf Coast refining economics and elevated retail fuel margins.”
Yemin added, “Entering the third quarter, demand for refined products in the Tyler market remains on pace with second quarter levels. "
Delek US's share closed at $7.46 yesterday, giving a market cap of $405 million. Delek Group's share price rose 1.5% in morning trading on the TASE today to NIS 929.40, giving a market cap of NIS 10.5 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on August 5, 2010
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