Shares of Delek US Holdings rose more than 10 percent Wednesday after the company posted a larger second-quarter profit than last year and said it was adding capacity at one of its main divisions.
At about 2:40 p.m., investors had bid up Delek (Ticker: DK) to $24, their highest level since late October 2007. Volume was more than double the stock’s daily average.
Earlier in the day, Brentwood-based Delek said it earned $67.8 million in the second quarter, up from $64.1 million a year ago. Officials said the increase in profits was due to higher refining margins and better asphalt pricing, among others. The company also had lower interest expense than a year ago.
Revenues for the quarter climbed 15 percent to more than $2.1 billion. Total volume at the company’s recently acquired Arkansas refinery were up more than 20 percent and its network of about 370 retail stores notched same-store merchandise sales growth of more than 4 percent.
Also driving volume growth during the quarter was the addition of rail service to the El Dorado refinery in Arkansas. That helped offset the effects of an April leak in an Exxon pipeline that feeds that refinery. The volume of crude oil delivered by rail rose from 2,000 barrels per day in April to about 9,000 barrels per day in July. President and CEO Uzi Yemin said construction is underway on a storage unit that will add another 10,000 barrels a day early next year.