(RTTNews) - Refined petroleum products marketer Frontier Oil Corp. (FTO: News ) reported Thursday a loss for the third quarter, compared to a profit last year, reflecting a steep fall in revenues and low refining margins.

For the third quarter, net loss was $15.13 million or $0.15 per share, compared to net profit of $72.32 million or $0.70 per share in the previous year.

The results for the latest quarter included an after-tax inventory gain of $8.6 million and hedging gain of $2.6 million, compared to an inventory loss of $77.5 million and hedging gain of $64.5 million, for the comparable period in 2008. The result also reflects an accrual of a potential $6.8 million penalty assessed by the Environmental Protection Agency pertaining to waste and waste-water handling at the Cheyenne refinery.

On average, 12 analysts polled by Thomson Reuters expected the company to report loss of $0.14 per share in the third quarter. Analysts' estimate typically excludes special items.

Revenues for the period declined to $1.20 billion from $2.19 billion for the third quarter of the prior fiscal year. Three analysts were expecting revenue of $1.26 billion.

Frontier Oil noted that Refined product margins remained depressed during the three month period because of persistent weakness in demand and high inventory levels, especially of distillates. Diesel crack spread averaged $7.94 per barrel, compared to $26.76 per barrel a year ago. Average gasoline crack spread declined to $7.92 per barrel from $9.42 per barrel.

The company's total charges averaged 177.74 thousand barrels per day, or bpd, up from an average of 173.95 thousand bpd last year, primarily attributed to the planned coker shutdown in El Dorado during the year-ago quarter. For the fourth quarter of 2009, the company expects charge rates to decline to an average of 136 thousand bpd.
Total volume of sales, increased year-over-year to 178.16 thousand bpd from 177.22 thousand bpd.

Refining operating expenses, excluding depreciation, increased to $83.70 million from $76.27 million, and Selling and general expenses rose to $13.65 million from $9.87 million in the comparable quarter of fiscal 2008. Interest expense and other financing costs increased to $6.70 million from $2.48 million.

For the nine-month period, net income dipped to $108.17 million or $1.03 per share from $177.61 million or $1.71 per share in fiscal 2008. Revenues declined to $3.15 billion from $5.15 billion in the same period last year.

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