HollyFrontier (HFC) Q2 Earnings Beat, Refining Margins Rise
Zacks Investment Research | Aug 01, 2019 01:00AM ET
U.S. refiner HollyFrontier Corp. (NYSE:HFC) reported second-quarter 2019 net income per share (excluding special items) of $2.18, beating the Zacks Consensus Estimate of $1.67 and the year-ago adjusted profit of $1.45. The robust performance stemmed from stronger refining margins.
Revenues of $4.8 billion surpassed the Zacks Consensus Estimate of $4.6 billion and rose 7% from the second-quarter 2018 sales of $4.5 billion.
Segmental Information
Refining: Adjusted EBITDA from the Refining segment, which is the main contributor to HollyFrontier’s earnings, was $556.1 million. This reflected a 44.5% increase from the year-ago quarter’s income of $384.8 million, thanks to wider gross margins, which was up 18.5% to $19.64 per barrel.
Total refined product sales volumes averaged 469,100 barrels per day (bpd), up 3.4% from 453,830 bpd in the year-ago quarter. However, throughput decreased from 490,200 bpd in the year-ago quarter to 484,890 bpd. Meanwhile, capacity utilization was 99.1%, down from 101.4% in second-quarter 2018.
Lubricants and Specialty Products: The segment EBITDA totaled $28.8 million, lower than $39.4 million reported in the year-ago quarter on base oil market weakness. Product sales averaged 34,660 bpd, increasing from the prior-year level of 31,000 bpd. However, throughput fell 8.7% year over year to 16,990 bpd in the reported quarter.
HEP: This unit includes HollyFrontier’s 57% interest in Holly Energy Partners L.P. (HEP), a publicly-traded master limited partnership that owns, operates, develops and acquires pipelines and other midstream assets.
Segment EBITDA was $88.6 million, up from $81.9 million in second-quarter 2018. Earnings were buoyed by strong crude gathering volumes.
HollyFrontier Corporation Price, Consensus and EPS Surprise
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