CVR Energy, a petroleum refining company based in Sugar Land, Texas, experienced a significant increase in profit during the third quarter, thanks to strong margins for its petroleum products.
Impressive Third-Quarter Profit
In comparison to the previous year, CVR Energy’s profit in the third quarter rose to $353 million, or $3.51 per share, from $93 million, or 92 cents per share. According to analysts polled by FactSet, the expected per-share earnings were $2, making CVR Energy’s performance even more impressive.
Adjusted Earnings and Revenue Figures
After excluding certain one-time items, adjusted per-share earnings amounted to $1.89, slightly lower than the analysts’ forecast of $1.93. However, revenue for the quarter decreased to $2.52 billion from $2.7 billion in the previous year, surpassing the expected revenue of $2.38 billion.
Crack Spreads Boost Results
CVR Energy attributed the positive results to crack spreads, which represent the difference between the price of petroleum and the products it produces. The company’s petroleum segment witnessed a rise in operating income due to improved refining margins, despite lower sales.
