The increase in profit is attributed to the company’s recent acquisition in the form of improved margins, said Benjamin P. Cowart, chief executive officer of Vertex Energy.
“We are now seeing the benefits of our recent acquisition in the form of improved margins. Our Black Oil Division experienced a 60 percent increase in gross profit versus the same quarter a year ago, while our TCEP business experienced an 80 percent improvement in gross profit relative to Q1 2012,” Cowart added. “Additionally, we are showing improvements in reducing our SG&A expenses quarter over quarter as we were able to reduce that expense line by 10.2 percent relative to the fourth quarter of 2012.”
The company recently also implemented a material process change at TCEP that the company believes will improve both operating efficiency and product quality. The results of this important upgrade will be evident in the third quarter and beyond, Cowart added.
Vertex Energy is also evaluating acquisition possibilities that are both accretive to the company and allows it to secure greater volumes of feedstock at reduced prices. “Our continued development of used oil to fuel opportunities will be another area of growth for the company in 2013,” Cowart said.