HollyFrontier beats profit estimate as refining margins surge
(Reuters) — US oil refiner HollyFrontier Corp reported a better-than-expected third-quarter profit, helped by higher refining margins in the aftermath of Hurricane Harvey that swept through Texas.
Industry wide margins for diesel and gasoline surged to more than two-year highs in early September as Harvey battered Texas, destroying gasoline lines in various parts of the state.
Dallas-based HollyFrontier said on Wednesday its refinery gross margins surged 48% to $14.55 per barrel in the quarter ended Sept. 30.
Net profit attributable to shareholders rose to $272 MM, or $1.53 per share, from $74.5 MM, or 42 cents per share, a year earlier.
HollyFrontier said it recorded a $111.1 MM pretax gain due to an adjustment of market inventory valuation in the quarter.
Excluding items, the company earned $1.07 per share. Analysts on average had estimated a profit of 89 cents, according to Thomson Reuters I/B/E/S.
Reporting by Yashaswini Swamynathan in Bengaluru; Editing by Sai Sachin Ravikumar and Anil D'Silva
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