HollyFrontier profit falls short of estimates, squeezed by more expenses
HollyFrontier Corp fell short of analysts’ estimates for quarterly profit, as the U.S. refiner was hit by a slump in refining margins and a rise in expenses due to heavy maintenance activity.
Refiners conduct maintenance activities, which are planned capital projects, to prevent unexpected shutdowns and accidents.
HollyFrontier said refinery gross margins, or the difference between the cost of crude oil and the average selling price of refined products, fell about 39% to $13.58 per produced barrel, hit by higher prices for Canadian crude.
The profit miss follows that of bigger rival Phillips 66 , which also reported a plunge in adjusted profit at its refining unit.
Adjusted net income attributable to HollyFrontier’s shareholders fell to $78 million, or 48 cents per share, in the fourth quarter ended Dec. 31, from $393.9 million, or $2.25 per share, a year earlier.
Analysts on an average had expected the company to report a profit of 52 cents per share, according to IBES data from Refinitiv.
Sales and other revenues rose nearly 1% to $4.38 billion. (Reporting by Shanti S Nair in Bengaluru; Editing by Subhranshu Sahu)
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