- HollyFrontier managed to sustain their dividends throughout 2020 despite seeing a severe financial impact from the Covid-19 downturn.
- I have previously warned that they might not be capable of repeating this throughout 2021 without seeing a recovery, which fortunately might actually be eventuating.
- Oil and fuel prices have increased with inventories plunging and most importantly, new Covid-19 cases in the United States have declined significantly.
- A turnaround would be most welcomed since the fourth quarter of 2020 saw their operating cash flow turn negative if not for favorable working capital movements.
- Whilst their outlook seems to be heading in a positive direction, since the same can also be said for their share price, my neutral rating is being maintained.
For further details see:
HollyFrontier: Possibly Seeing A Recovery After A Rough End To 2020