(RTTNews) - Thursday, petroleum refiner Holly Corp. (HOC: News ) reported a sharp fall in third quarter earnings from a year ago reflecting lower refined product prices and reduced margins. However, both earnings per share and revenues came in ahead of Street estimate.

The Dallas, Texas-based Holly's third-quarter net income attributable to the company's stockholders plunged to $23.48 million or $0.47 per share from $49.9 million or $1.00 per share in the prior year period. On average, eleven analysts polled by Thomson Reuters expected the company to report earnings of $0.45 per share for the quarter.

Quarterly revenues decreased 13.3% to $1.49 billion from $1.72 billion in the comparable period, yet beat analysts estimate of $1.38 billion.

Holly said the sales decline was due to the effects of a 42% decline in year-over-year third quarter sales prices of produced refined products sold, which was partially offset by a 63% current quarter increase in volumes of refined products sold over the same period in 2008.

Commenting on the operations, Matthew Clifton, chairman of the Board and chief executive officer, said, "Despite the continued challenging refining environment, our quarterly results remained profitable."
During the quarter, overall refinery gross margins were $8.27 per produced barrel, a 45% decrease compared to $15.17 for the third quarter of 2008.

Year-to-date, Holly's net income dipped to $60.03 million or $1.19 per share from $70 million $1.38 per share in the corresponding period last year. Revenues declined 35.7% to $3.18 billion from $4.944 billion a year ago.

Looking forward, Clifton said the refining industry will remain challenging until economic activity increases and refined product inventories are reduced.

HOC is trading at $28.38, down $0.26 or 0.91%, on a volume of about 850 thousand shares.

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by RTT Staff Writer

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