Texas-based Fortune 500 company Frontier Oil Corporation has reported a net loss of $97.4 million, or $0.94 per share for the fourth quarter of 2008, compared to a net income of $43.4 million, or $0.41 per diluted share for the same period of 2007. The company’s revenues were $1,348.1 million for the quarter compared to revenues of $1,319.6 million in the same period of 2007.
 
The fourth quarter 2008 results include an after-tax inventory loss of $245.1 million and an after-tax hedging gain of $115.6 million, compared to an after-tax inventory gain of $40.8 million and an after-tax hedging loss of $31.5 million for the same period in 2007.
 
For the full year 2008, net income totaled $80.2 million, or $0.77 per diluted share compared to a net income of $499.1 million, or $4.62 per diluted share in 2007.  The company’s revenues were $6,498.8 million for the year 2008, compared to revenues of $5,188.7 million in 2007.
 
The 2008 results include an after-tax inventory loss of $157.4 million and an after-tax hedging gain of $90.8 million, compared to an after-tax inventory gain of $78.4 million and an after-tax hedging loss of $53.6 million for the same period in 2007.
 
For the fourth quarter 2008, Frontier generated cash from operations of $76.9 million. Frontier’s cash balance at December 31, 2008 was $483.5 million, up from $464 million in the previous quarter despite $49.2 million in net capital expenditures.
 
As of December 31, 2008, there were no cash borrowings under the company’s revolving credit facility, and the net debt to book capitalization ratio was negative 14.9%. For full year 2008, Frontier generated cash from operations of $297.3 million, while investing $216.8 million in net capital expenditures, $67 million in share repurchases, and $23.1 million in dividends.
 
Mike Jennings, President and CEO of Frontier, said: “Apart from the effect of a large inventory loss attributable to a $60 drop in WTI prices and our FIFO accounting method, Frontier produced a good financial result for the quarter including operating cash flow of $76.9 million. Our fourth quarter benefited from record setting distillate yields in El Dorado and record setting coker throughput in Cheyenne.”