April 26, 2018 / 10:41 PM / 25 days ago

CVR Q1 income doubles on stronger crack spreads, lower biofuels cost

    NEW YORK, April 26 (Reuters) - CVR Energy Inc        
refining unit's income more than doubled in the first quarter,
versus the prior-year period, the company said on Thursday,
citing stronger crack spreads and lower biofuels compliance
costs.
    
    *CVR Refining reported net income of $147 million for the
first quarter, up from $67 million in the same period of 2017.
    * "The quarter's fiscal performance was driven by stronger
crack spreads, hedging gains, a reduction to our estimated
Renewable Volume Obligation and lower" prices of biofuels
credits," said Dave Lamp, CVR's chief executive officer.
    * When asked on an investor call if the company received a
small refinery hardship exemption for its Wynnewood, Oklahoma,
refinery, Lamp said: "(T)he request for or granting of a waiver,
something we consider very confidential and we will not discuss
that."
    * Oil refiners and other fuel companies are required to
blend biofuels such as ethanol with their petroleum-based
products each year, though refiners with capacity below 75,000
barrels per day can apply for a waiver of those obligations.
    * The Environmental Protection Agency has said it has given
25 such exemptions for 2017.
    * CVR Refining said on Thursday that it turned a $23 million
profit on Renewable Identification Number (RIN) credits in the
first quarter, nearly quadrupling the $6 million it earned in
the market for biofuels credits in the same period of 2017.
    * The company said it now expects its cost of complying with
the Renewable Fuel Standard will fall to $80 million this year
from roughly $249 million in 2017. The $80 million projection is
also markedly below the $200 million in 2018 RIN costs that CVR
estimated for this year when it released its fourth-quarter 2017
earnings in February.


 (Reporting by Jarrett Renshaw and Chris Prentice
Editing by Leslie Adler)
  
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