HollyFrontier beats profit estimates on higher refining margins

Oil refiner HollyFrontier Corp beat analysts’ estimates for quarterly profit, as refining margins were boosted by cheaper crude from U.S shale basins and Canada.

The company said refinery gross margins, or the difference between the cost of crude oil and the average selling price of refined products, surged 77 percent to $22.17 per barrel in the fourth quarter ended Dec. 31.

Refining margins for U.S. oil refiners have been fattening as transportation bottlenecks in Canada and the oil-rich Permian basin have ensured the flow of discounted crude.

Excluding items, the company posted a profit of $2.25 per share, beating the average analyst estimate of $1.92, according to IBES data from Refinitiv.

Net profit attributable to the company's shareholders fell to $141.9 million, or 81 cents per share, in the quarter, from $521.1 million, or $2.92 per share, a year earlier. 

Sales and other revenue rose 8.8 percent to $4.34 billion.

Reporting by Arundhati Sarkar and Shradha Singh in Bengaluru; Editing by Sriraj Kalluvila

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