UPDATE 1-Holly posts wider-than-expected Q1 loss

* Q1 loss $0.53/shr vs. est loss $0.47/shr

* Revenue triples to $1.87 billion, beats estimates

* Refinery gross margins fall 53 percent

May 6 (BestGrowthStock) – Oil refiner Holly Corp (HOC.N: ) on
Thursday reported a wider-than-expected quarterly loss, hurt by
weak refinery gross margins, but said it was cautiously
optimistic about the rest of 2010.

Net loss for first quarter was $28.1 million, or 53 cents a
share, compared with a net income of $21.9 million, or 44 cents
a share, in the same quarter last year.

Sales and other revenues almost tripled to $1.87 billion,
helped by an increase in the company’s production volumes.

Analysts on average were expecting a loss of 47 cents a
share, before special items, on revenue of $1.69 billion,
according to Thomson Reuters I/B/E/S.

The company’s refinery gross margins fell 53 percent to
$5.56 per produced barrel from a year ago.

Refining margins are the difference between the cost of
crude oil and wholesale price of petroleum products like

“We are cautiously optimistic about the remainder of 2010
as the margin environment has shown significant improvement
heading into the summer,” Chief Executive Matthew Clifton said
in a statement.

Earlier in the day, peer Western Refining Inc (WNR.N: ) also
posted a quarterly loss, hurt by lower refined product margins.

Shares of Dallas, Texas-based Holly closed at $26.56
Wednesday on the New York Stock Exchange.

Investing Research

(Reporting by Vinay Sarawagi in Bangalore; Editing by Maju

UPDATE 1-Holly posts wider-than-expected Q1 loss