Par Pacific Holdings, Inc. reported a net loss of $27.8 million for the 3Q16 compared to net income of $14.7 million for the same quarter in 2015, according to public filings released Wednesday.
The Refining segment had an operating loss of $18 million for the third quarter of 2016 compared to operating income of $35 million for the third quarter of 2015. Adjusted Gross Margin for the Refining segment was $32.2 million in the third quarter of 2016 compared to $56.3 million in the third quarter of 2015.
The loss is primarily related to lower utilization and higher repair and maintenance costs associated with the turnaround at its Hawaii refinery, Kapolei, and lower crack spreads, partially offset by the contribution from the Wyoming refinery acquisition on July 14, 2016.
During the third quarter of 2016, the combined Mid Pacific crack spread for products and crude differentials was $6.87/bbl in the third quarter of 2016 compared to $8.49/bbl in the third quarter of 2015. The lower year- over-year combined index was primarily driven by adverse distillate crack trends. Third quarter 2016 Hawaii refinery throughput was 54,000 b/d, compared to 74,000 b/d throughput for the same period last year. Production costs were $5.42 per throughput barrel in the third quarter of 2016, compared to $4.18 per throughput barrel in the same period in 2015. The higher unit of production costs and lower refining throughput were directly related to the planned downtime associated with its Hawaii refinery turnaround.
Par Pacific closed the acquisition of the Wyoming Refining Company on July 14, 2016, so the Wyoming refinery results only reflect a partial quarter. The Wyoming refinery's throughput was 16,000 b/d in the third quarter.
Commenting on the results, William Pate, Par Pacific's President and Chief Executive Officer, stated, "Despite a challenging third quarter with significant planned maintenance projects, we made progress on several fronts. We are pleased to have completed the acquisition and related financing of our Wyoming refinery and logistics assets in the third quarter. In Hawaii, we successfully restarted our refinery after a major turnaround and a significant maintenance project on our subsea pipeline, and began rebranding a number of our Hawaii retail locations to our new local brand, Hele."
Par Pacific Holdings, Inc., based in Houston, owns, manages and maintains interests in energy and infrastructure businesses.
