May 7, 2010 / 4:36 PM / 7 years ago

UPDATE 1-Alon USA cuts FY 2010 capex view

2 Min Read

* Cuts capex view to less than $70 mln from $71 mln

* Says to restart Krotz Spring refinery soon

* Sees Calif throughput in 20,000-30,000 bpd range

BANGALORE, May 7 (Reuters) - Refinery operator Alon USA Energy Inc ALJ.N slightly lowered its full year capital spending outlook and said it expects to restart its Krotz Spring refinery in Louisiana in a few weeks time.

"Our (original) budget was $71 million. We have under spent in the first quarter ... We haven't officially lowered the number but we would spend less than the $70 million range," Chief Executive Jeff Morris said in a conference call with analysts.

The 83,100 barrel-per-day (bpd) refinery at Krotz Springs, which Morris said will start in a few weeks, has been shut down since November 2009.

Morris also said he expects throughput for Alon's California refineries to be in the middle of 20,000 bpd to 30,000 bpd range and lowered asphalt sales outlook for the year.

"In our original business plan, we were projecting 1.2 million tons of asphalt sales from the Company, we are now projecting for the year 1 million tons, but also, going forward, an improvement in margins."

Morris said the company was moving forward to finalizing its acquisition of the Bakersfield, California refinery it bought from Flying J Inc, which filed for bankruptcy in December 2008.

On Thursday, Alon reported a narrower-than-expected quarterly loss, partly helped by retail fuel sales. [ID:nSGE6450O3]

Shares of the company were down 2.2 percent at $6.65 Friday on the New York Stock Exchange.

For the alerts, please double click [ID:nWNAB8106] (Reporting by Arup Roychoudhury in Bangalore; Editing by Prem Udayabhanu)

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