HollyFrontier 2Q profit more than doubles
DALLAS (AP) — HollyFrontier Corp. said Wednesday that its second-quarter profit more than doubled, although its revenue fell short of Wall Street expectations.
The Dallas-based oil company earned $493.5 million, or $2.39 per share, for the quarter that ended June 30. That's compared with $192.2 million, or $1.79 per share, in the same quarter last year.
HollyFrontier largely grew on expanded operations. It also benefited from improved refining margins as well as the difference between crude oil prices in the central U.S. versus prices on the coasts.
The company operates refineries in Kansas and Oklahoma, where oil prices are cheaper than they are on global markets. That means the company can buy crude oil at a discount compared to refineries that pay prices dictated by global markets. It can then sell its refined products at fatter profit margins.
Total revenue rose 62 percent to $4.81 billion.
Analysts polled by FactSet expected $2.26 per share on revenue of $5.15 billion.
Operating costs and expenses rose 51 percent to $3.99 million.
HollyFrontier also said Wednesday that it is still assessing the damage from a fire at its Tulsa East refinery. It expects repairs will take up to six weeks and will reduce its normal crude production by 30,000 to 40,000 barrels per day, according to a filing with the Securities and Exchange Commission.
Shares fell 11 cents to $39.31 in afternoon trading.