Holly Corp. Posts 53 Percent Drop in 3Q Profit

Independent petroleum refiner Holly Corp. said its third-quarter profit fell 53 percent because of lower gas prices and reduced refinery margins industrywide.
For the three months ended Sept. 30, net income after paying preferred dividends was $23.5 million, or 47 cents per share, down from $49.9 million, or $1 per share, in the 2008 period.
Holly said refinery production levels increased 79 percent, in part due to production from a newly acquired Tulsa refinery and gains capacity expansions at two other sides. The company said its recently announced plans to purchase a second Tulsa refinery and combine it with the one it already owns will enable it to increase overall capacity and save about $125 million in capital costs.
Revenue fell 12 percent to $1.49 billion from $1.64 billion last year. Holly Corp. said the decrease was due to a 42 percent year-over-year decline in prices of produced refined products, partially offset by a 63 percent rise in volume.
Overall refinery gross margins for the quarter were $8.27 per produced barrel, a 45 percent drop from $15.17 in the third quarter of 2008.

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