Frontier Oil 3Q profit drops on high crude prices

For the period ended Sept. 30, the refiner posted net income of $72.3 million, or 70 cents per share, compared with $137.2 million, or $1.28 per share, in the year-ago period.

Revenue rose about 58 percent to $2.2 billion from $1.39 billion.

Analysts polled by Thomson Reuters expected, on average, earnings of 73 cents per share. Analysts typically exclude one-time charges.

Frontier said its crack spread--the difference between what refiners pay for crude and what they get for the gasoline they make--averaged about $9.52 per barrel during the period. That's better than the $5.03 crack from the second quarter, but well below the $20.51 seen in the third quarter of 2007.

"Despite the distressed economy and persisting weakness in gasoline demand this year, Frontier has remained profitable due to strong diesel margins, lower cost feedstock, and improving operations," Chairman, President, and Chief Executive James Gibbs said in a statement."

Shares fell 6 cents to close at $12.45. The stock has traded between $8.43 and $49.13 in the past 52 weeks.