Giant Reports Loss

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Giant Reports Loss

11/13/2002
SCOTTSDALE, Ariz. -- Giant Industries Inc. has reported a net loss of $4.6 million for the third quarter ended September 30, 2002.

The company, which operates three refineries, a crude oil gathering pipeline system, several distribution terminals and a chain of 147 convenience stores, reported a net loss of $8.7 million for the first nine months of this fiscal year on sales of $857.1 million. This compares to net earnings of $18 million on sales of $737 million during the same period in 2001.

The company blamed poor refining margins, which plummeted from $9.45 per barrel in 2001 to $6.04 per barrel this year. The refining margin at the company's Yorktown refinery was $1.71 per barrel during the past quarter.

The company's retail businesses fared better. Pretax earnings within that division were up significantly in the third quarter from $2.7 million in 2001 to $6.5 million in 2002 partially as a result of a $4.9 million gain on the sale of assets.

The company said that gasoline margins had begun to show continued improvement, due to ongoing strong demand and shrinking inventories, which recently reached a one year low.

The company sold six c-stores for $11.25 million this year and is working to sell additional assets, including c-stores and their corporate headquarters (pictured above) in order to generate additional cash flow.