Sugar Land, Texas-CVR Energy Inc. said April 29 that it intends to restate its earnings for the year ended December 31, 2007, and the quarter ended September 30, 2007. CVR said the revision resulted from certain errors principally relating to the calculation of the cost of crude oil purchased by CVR and associated financial transactions. The errors affecting cost of product sold (exclusive of depreciation and amortization) equate to approximately 0.8 percent of the CVR cost of product sold (exclusive of depreciation and amortization) for the year ended Dec. 31, 2007. CVR expects its restated net loss for the year ended Dec. 31, 2007, to be approximately $65-$70 million, an increase of approximately $8-$13 million over the net loss of $56.8 million previously reported. CVR expects its restated net income for the quarter ended Sept. 30, 2007, to be approximately $9-$12 million, a decrease of approximately $1-$4 million from the net income of $13.4 million previously reported, and expects its restated net loss for the quarter ended Dec. 31, 2007, to be approximately $23-$26 million, an increase of approximately $7-$10 million from the net loss of $15.9 million previously reported. As a result of the restatement, CVR says it has begun implementing certain changes regarding crude oil accounting, including centralization of the related accounting functions and improved oversight and review of those functions.
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