HollyFrontier Q3 Profit Plunges

(RTTNews) - HollyFrontier Corp. (HFC) reported a plunge in third quarter of 2013 net income attributable to stockholders to $82.3 million or $0.41 per share, from last year's $600.4 million or $2.94 per share, principally reflecting lower third quarter refining margins. Analysts polled by Thomson Reuters expected the company to report earnings of $0.66 per share for the quarter. Analysts' estimates typically exclude special items.

Refinery gross margins were $10.64 per produced barrel, a 65% decrease compared to $30.55 for the third quarter of 2012. Production levels averaged approximately 436,000 barrels per day or BPD and crude oil charges averaged approximately 417,000 BPD for the current quarter. Operating expenses for the quarter were $256.3 million or $5.53 per barrel compared to $233.9 million or $5.11 per barrel for the third quarter of last year.

Income from operations for the quarter was $149.75 million, down from $978.30 million in the prior year.

Sales and other revenues for the quarter increased to $5.327 billion from $5.205 billion last year. Five analysts estimated revenues of $4.50 billion for the quarter.

HollyFrontier's President & CEO, Mike Jennings, said, "Contraction in the Brent to WTI differential continued to squeeze inland refined product margins from prior year highs, resulting in a year-over-year decrease in third quarter earnings. In addition, higher crude oil prices and elevated RIN costs negatively affected our capture of benchmark refining margins during the third quarter."

Looking forward, the company said it expects continued growth in North American crude oil production and is confident that its geographic proximity and ability to process both light and heavy crude streams will create attractive opportunities, even as transportation logistics and related crude differentials are rationalized.