Minnesota refinery owner Northern Tier Energy reports strong profits
Nov 13, 2012 (Star Tribune (Menafn - Minneapolis) - McClatchy-Tribune Information Services via COMTEX) --Higher output and favorable crude oil prices at the St. Paul Park refinery have boosted profits for its new owner, whose third-quarter financial results beat analysts expectations on Tuesday.
Northern Tier Energy, which is based in Ridgefield, Conn., but has operations in Minnesota and Wisconsin, reported quarterly operating income of 199.4 million, up 33.7 million from the quarter a year ago.
Analysts surveyed by Bloomberg had expected a 150 million operating profit.
In a statement, the company attributed the increase mainly to higher margins per barrel -- thanks to favorable oil pricing -- and increased output and sales at the refinery. Income from its SuperAmerica stores in Minnesota and Wisconsin was down, the company said.
Northern Tier also announced its first cash distribution of 1.48 per unit. The company became a master limited partnership, with its units publicly traded, in an initial public offering last July. The company acquired the refinery from Marathon Oil. Corp. in 2010.
For the third quarter, it reported adjusted earnings before interest, taxes and amortization expenses of 249.5 million, an increase of 70 million from the quarter a year ago. It reported quarterly net income of 61.1 million, compared with 2.2 million a year earlier. Net income takes into account derivative losses, interest and taxes.
Northern Tier has 166 company-operated and 67 franchised SuperAmerica stores and a 17 percent stake in a 300-mile pipeline that carries crude oil from a hub at Clearbrook, Minn., to its refinery.
David Shaffer -- 612-673-7090
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