June 2009 -- Alon USA Energy Inc. posted a profit of $17.4 million, or 37 cents per share, in first-quarter 2009 compared with a $33.6 million loss in the year-earlier period. Last year's results included after-tax losses for costs associated with a fire at the company's Big Spring refinery.
Alon President and CEO Jeff Morris commented on the company's recovery from the previous year's events, saying, "We are pleased with the progress we have made during the past year. It was only a little over a year ago when I shared with you the news of the fire at our Big Spring refinery. Today, I have the please of conveying that not only have we recovered, we have made measurable strides forward in our refinery operations, capital structure and growth prospects."
As part of the company's growth plans, it acquired the Krotz Springs refinery from Valero Energy Corp. in July 2008. Alon USA reduced its debt related to the Krotz Springs acquisition by 50% in the first quarter, according to Morris.
"Our term loan has been reduced to approximately $165 million from $300 million and cash borrowings under our revolving credit facility have been decreased by approximately $100 million, he said in a May 6 statement. "This was achieved, in part, due to the successful unwind and liquidation of the heating oil crack spread hedge that was put in place in July 2008, realizing approximately $195 million in proceeds, including the release of $50 million of cash collateral supporting the hedge."
