Holly Energy Reports Big Jump in 2017 Earnings

Nothing like an increase in the price of oil to help a company increase its profits as indicated by Dallas-based Holly Energy Partners, L.P.

The company reported its fourth quarter 2017 net income was $86.1 million, more than double the $41.4 million it reported for the fourth quarter of 2016. For shareholders, that’s a jump from the 40 cents a share earned at the end of 2016 to 96 cents at the end of 2017.

Cash flow totaled more than $65 million, or an increase of $7 million compared to the fourth quarter of 2016. During the quarter, Holly Energy also acquired the remaining interests in the SLC, a Salt Lake City pipeline as well as the Frontier pipelines.

But Holly, the company with refinery operations in Tulsa also reported revenues from its refinery processing units fell by less than a million dollars.  Revenues were $19.4 million, a drop of $0.8 million. But the company said the decrease was largely due to lower throughputs on its El Dorado, Kansas refinery processing units.

However, the company reported revenue increases in other areas of operation including refined product pipelines, intermediate pipelines, crude oil pipelines and terminal, loading and loading rack fees.

 

Commenting on the fourth quarter of 2017, George Damiris, Chief Executive Officer, stated, “We are pleased with our solid financial performance in the fourth quarter, which allowed us to maintain our record of continuous quarterly distribution increases. We expect to continue to grow the distribution at a rate of 4% in 2018.”

 

Revenues for the quarter were $129.2 million, an increase of $16.7 million compared to the fourth quarter of 2016. The revenue increase was mainly due to the firm’s fourth quarter of 2017 acquisition of the remaining interests in the SLC and Frontier pipelines and higher intermediate and refined product pipeline volumes. Overall pipeline volumes increased 30% compared to the fourth quarter of 2016.

 

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