Independent petroleum refiner and marketer HollyFrontier Corp. (HFC) Tuesday reported a higher first-quarter profit, despite lower revenues, reflecting an increase in refining margins. Earnings per share missed analysts' expectations, while revenues came above view.
Refinery gross margins in the quarter were $23.32 per produced barrel, a 34 percent increase from the prior-year quarter. Looking forward to the summer driving season, the firm said its margin outlook continues to be positive.
Refinery production was 407,270 barrels per day or bpd, down from 432,520 bpd and crude oil charges averaged nearly 380,620 bpd, lower than 407,650 bpd a year ago.
President and CEO Mike Jennings said, "Planned turnarounds resulted in overall lower production levels for the quarter, but strong refined product margins helped drive a solid year-over-year increase in first quarter earnings."
In the first quarter, net income attributable to the company's stockholders increased to $333.67 million or $1.63 per share from $241.70 million or $1.16 per share in the previous year. On average, 19 analysts polled by Thomson Reuters expected earnings per share of $1.73 for the quarter. Analysts' estimates typically exclude one-time items.
However, sales and other revenues for the quarter fell 5 percent to $4.71 billion. Analysts estimated revenues of $4.59 billion for the quarter.
Total operating costs and expenses were $4.16 billion, down 8 percent from the preceding year.
HFC is currently trading at $50.24, down 2.88 percent.
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