SCOTTSDALE, Ariz. -- Giant Industries Inc. has reported net earnings for the first quarter ended March 31, 2005 of $10.1 million or 80 cents per diluted share. This compares to net earnings for first-quarter 2004 of $4.5 million or 50 cents per diluted share.
Fred Holliger, Giant's CEO, said, We are pleased to be able to report record first-quarter net earnings for the second consecutive year. Strong financial performances by our refining group and Phoenix Fuel contributed to the record earnings. Net earnings for the quarter were also positively impacted [image-nocss] by a $2.1 million aftertax insurance reimbursement. Refining margins at our Four Corners refineries and Yorktown refinery were solid for the quarter and we believe that current refining fundamentals are comparable to the same time last year. Operating income at our Four Corners refineries was more-or-less even with the prior year level; however, Yorktown operating income was approximately 22% higher than the first-quarter 2004 level.
Retail operations profitability was negatively impacted by lower fuel margins in the first quarter of 2005. Operationally, our retail group continued to perform well as same store fuel volumes increased by more than five% in the first quarter of 2005 compared to the first quarter of 2004. Merchandise sales increased about one% in the quarter over last year's first quarter level. So far in the second quarter, retail fuel margins have strengthened and fuel volumes and merchandise sales continue to grow relative to the same time last year.
Added Holliger, Phoenix Fuel continued to perform well financially as they achieved growth across the board in the first quarter of 2005. Operating income in the first quarter of 2005 were up in excess of 75% over the prior year comparable quarter as wholesale fuel sales volumes increased in excess of 6% and cardlock fuel sales increased approximately 13%. Phoenix Fuel continues to provide consistent cash flow and growth in the markets that it serves.
Giant, Scottsdale, Ariz., owns and operates one Virginia and two New Mexico crude oil refineries, a crude oil gathering pipeline system based in Farmington, N.M., which services the New Mexico refineries, finished products distribution terminals in Albuquerque, N.M., and Flagstaff, Ariz., a fleet of crude oil and finished product truck transports and a chain of retail gas station/convenience stores in New Mexico, Colorado and Arizona. Giant is also the parent of Phoenix Fuel Co. Inc., an Arizona wholesale petroleum products distributor.
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