HollyFrontier Corp. on Wednesday reported a loss of $601 million, or $3.72 per diluted share, in 2020, compared to earnings of $772.4 million, or $4.61, in 2019.
For the fourth-quarter of 2020, the Dallas-based firm that has a refinery in Tulsa reported a loss of $117.7 million, or $0.73 per diluted share, compared to earnings of $60.6 million, or $0.37 per diluted share, for the same period in 2019.
The COVID-19 pandemic caused a decline in U.S. and global economic activity starting in the first quarter of 2020. This decrease reduced both volumes and unit margins across the company’s businesses, resulting in lower gross margins and earnings.
During the fourth quarter of 2020, demand for transportation fuels remained challenged while lubricants and specialties continued to show strength in the second half of the year because of improvement in industrial and transportation-related markets and increased global demand for base oils.
“Despite the challenging environment, HollyFrontier preserved our industry-leading balance sheet thanks to a resilient set of results led by HEP and our Lubricants businesses,” Michael Jennings, HollyFrontier’s president and chief executive officer, said in a statement.
“Looking forward, we expect demand for transportation fuels will strengthen as COVID-19 vaccines are distributed and the global economy recovers from the pandemic. Our focus for 2021 is on operating safely and reliably while executing our ambitious capital and turnaround plans.”
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