Holly announces Q1 loss
Texas-based Holly Corporation announced a 2010 Q1 net loss of $28.1m, although revenue soared helped by its Tulsa acquisitions.
The loss compares with $21.9m profits for the same period in 2009, with margins down 53% year-on-year at $5.56 per barrel produced and operating costs increasing by more than 200% to just under $1.9bn. However, much of this cost increase was as a result of the purchase and integration of two refineries in Tulsa last year, previously owned by Sunoco and Sinclair Oil.
Although requiring continued integration work, the refineries are already starting to contribute to Holly's income, boosting Q1 revenues to a 189% improvement on 2009 at $1.87bn. However, this was offset by lower margins which, at the end of 2009 had dropped below $3/b at one point.
Holly CEO, Matthew Clifton, stated: "Looking forward, we remain confident that the enhanced capabilities of our assets, our expanded asset base, and the markets we serve, combined with our conservative financial condition will continue to allow us to meet the challenges presented by today’s refining environment."
