May 3 U.S. refiner HollyFrontier Corp
reported a bigger-than-expected quarterly loss, hurt by a 61
percent rise in operating costs.
However, sales and other revenue at the Dallas, Texas-based
company rose 52.5 percent to $3.08 billion, as it benefited from
higher selling prices.
Average sales price per produced barrel rose 43.5 percent to
$66.62 per barrel in the quarter.
Robust demand for refined products and declining inventories
are offering a glimmer of hope to refiners, whose margins fell
sharply in 2016 due to a glut of gasoline and diesel.
HollyFrontier's refining margins rose 2 percent to $7.74 per
But costs for refiners have gone up with a rise in oil
prices, caused by an OPEC-led production cut and rebounding
U.S. crude prices averaged $51.78 per barrel in the
first three months of the year, up 54 percent from a year
Total operating costs and expenses at HollyFrontier jumped
61 percent to $3.1 billion in the first quarter.
Net loss attributable to the company's shareholders was
$45.5 million, or 26 cents per share, in the first quarter ended
March 31, compared with a profit of $21.3 million, or 12 cents
per share, a year earlier.
Net income for the latest quarter was reduced by $12.0
million due to one-time items.
Excluding items, the company posted a net loss of 19 cents
per share, according to Thomson Reuters I/B/E/S, bigger than the
Street estimate of a loss of 12 cents per share.
(Reporting by Muvija M in Bengaluru; Editing by Arun Koyyur)