HollyFrontier Corporation reported third quarter net income of $82.3-million for 2013 compared to $600.4-million in 2012.
The Dallas-based company in a news release cited lower third quarter refining margins for the $518.1-million decrease.
"Contraction in the Brent to WTI differential continued to squeeze inland refined product margins from prior year highs, resulting in a year-over-year decrease in third quarter earnings. In addition, higher crude oil prices and elevated RIN costs negatively affected our capture of benchmark refining margins during the third quarter," said HollyFrontier President & CEO Mike Jennings.
The release stated refinery gross margins were $10.64 per produced barrel, a 65% decrease compared to $30.55 for the third quarter of 2012.
Jennings said HollyFrontier is confident the company's geographic proximity and ability to process both light and heavy crude streams will create attractive opportunities in the months ahead.
HollyFrontier operates two refineries in Tulsa as well as Kansas, New Mexico, Wyoming and Utah and sells gasoline, jet fuel and other products across the southwestern U.S.