After the year’s end a fire broke out at the company’s Big Spring refinery. Morris said that the company is working to reestablish production at the refinery. He made it clear that no major vessels, compressors, or motors would require replacement due to the fire.
On the brighter side, the company’s board of directors has approved plans for an initial public offering (IPO) for its retail and marketing businesses. The IPO is expected to be completed by the end of 2008 and will consist of the company’s branded transportation fuel marketing, which includes approximately 800 distributor owned and operated businesses as well as 307 company owned and operated stores.
Morris added that Alon USA will own a majority stake in the offering. He also said that the company believes it is doing the right thing, the business will be larger than some of the currently traded retail operations, and Alon USA is confident about the step it is taking.
The company had a net loss of $39.9 million in the fourth quarter of 2007, compared to the fourth quarter of 2006, which saw a net profit of $22 million. Net income for the year that ended December 31, 2007, was $103.9 million, compared to $157.4 million for last year. Morris stated that he was clearly disappointed with the results and that he takes much of the responsibility for them.
