Holly Energy, a company engaged in transporting refined products through its pipelines, has reported net income of $10.7 million for the third quarter of 2007, compared to $7.8 million for the three months ended September 30, 2006.
The company reported net income of $29.1 million, compared to $17.9 million for the nine months ended September 30, 2006. The net income for the three and nine months ended September 30, 2007 increased $2.9 million and $11.2 million, respectively, compared to the same periods in 2006.
Matt Clifton, chairman of the board and CEO, said: Our earnings before interest, taxes, depreciation and amortization (EBITDA) for the third quarter of 2007 was $17.6 million, a 20% increase over $14.7 million for the third quarter of 2006. Although volumes shipped on our pipeline systems were consistent with last year’s levels, they were below expectations for the quarter due to the impact of refinery problems at Holly’s Navajo refinery.
Currently, pipeline shipment levels are more in line with expectations. We expect these levels to increase further after Holly completes additional expansion initiatives at the Navajo refinery in the beginning of 2009. Additionally, we continue to explore organic and third-party growth opportunities.