HollyFrontier's Profit Falls, Margins Slide
U.S. refiner HollyFrontier Corp reported a fall in profit for the second quarter as its refining margins slumped 28 percent after a runup in U.S. crude oil prices.
HollyFrontier, which operates refineries in Kansas, Oklahoma, New Mexico, Wyoming and Utah, usually benefits from access to cheap U.S. shale crude.
U.S. crude oil prices rose 5.6 percent in the April-June quarter to $105.37 per barrel as of June 30.
HollyFrontier, like other U.S. refiners, sells refined products at prices linked to the more expensive global benchmark Brent.
"Although refined product margins decreased compared to the prior year quarter, our margins are healthy and we expect further growth in North American crude oil production to continue to provide us with a structural crude advantage," Chief Executive Mike Jennings said in a statement.
HollyFrontier's refinery gross margins fell to $14.54 per produced barrel in the second quarter ended June 30 from $20.28, a year earlier.
Net income attributable to the company's shareholders plunged 31 percent to $176.4 million, or 89 cents per share.
Total revenue rose 1 percent to $5.37 billion.
HollyFrontier's shares closed at $45.81 on Tuesday on the New York Stock Exchange. The stock has fallen 8 percent this year to Tuesday's close.
Reporting by Swetha Gopinath
