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BRENTWOOD, Tenn., and DALLAS -- The first-quarter results for two petroleum refining and marketing companies were prosperous, as one, Delek US Holdings Inc., operator of MAPCO Express convenience stores, reported a 62-percent increase in net income over last year, while Alon USA reported net income reached $35 million, an $11 million increase compared to the year-ago period.
Net income for the company totaled $20.9 million for the first quarter of 2007, up from the $12.9 million seen in the first quarter of 2006.
"We are pleased to report record first-quarter earnings which built on the momentum of the strong operating performance in 2006," Uzi Yemin, president and CEO of Delek US, said in a written statement. "Achievements during the quarter included a record merchandise margin of 32.5 percent in our retail segment and the processing of over 2,500 barrels per day of West Texas sour crude at the Tyler refinery."
The company's retail segment contribution margin was $11.9 million in the first quarter, compared to $10.4 million for the first quarter of 2006. Net sales in the first quarter for the retail segment were $331 million, an increase of 11 percent compared to the first quarter last year. Same-store merchandise sales increased 1.7 percent. A record 32.5-percent increase in merchandise margin was driven by a 5.5-percent increase in the food and fountain same-store sales category, the company stated.
Net income for the company -- excluding a $600,000 after-tax gain from the sales of assets in 2005 -- totaled $35 million for the first quarter of 2007, up from the $24.1 million seen in the year-ago period.
"We are pleased with the increased earnings achieved in the first quarter resulting primarily from our California refineries and related asphalt assets acquired last year," Jeff Morris, Alon's president and CEO said in a written statement. "Our integration of the California refineries and asphalt business is progressing according to plan and we look forward to increasing profit contributions from these operations."
Alon USA also operates more than 200 7-Eleven and FINA-branded convenience stores in the Southern U.S.