(Reuters) – U.S. light crude refiner HollyFrontier Corp (HFC.N) reported a quarterly profit ahead of Wall Street estimates on Wednesday as its refining margins surged.
The Dallas-based company, which mostly processes light crude oil, benefited from lower prices of Midland Texas crude during the first quarter.
HollyFrontier’s overall refinery gross margins, or the difference between buying of crude and average selling price of refined products, rose more than 70 percent to $12.83 per barrel.
That helped sales and other revenue at the company rise 34 percent to $4.13 billion for the three months ended March 31.
Net income attributable to company shareholders was $268.1 million, or $1.50 per share, in the first quarter, compared to a loss of $45.5 million, or 26 cents per share, a year earlier.
Excluding items HollyFrontier earned 77 cents per share beating analysts’ average estimate of 38 cents, according to Thomson Reuters I/B/E/S.
The reported quarter included a gain of $130.8 million due to special items, while the year-ago quarter included integration costs related to the acquisition of Petro-Canada Lubricants and other charges.
Reporting by Yashaswini Swamynathan in Bengaluru; Editing by Shounak Dasgupta
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