UPDATE 1-Holly's Q3 earnings beat estimates

* Q3 EPS $0.47 vs. est. $0.45

* Revenue down 13 percent

* Refinery production up 79 pct

Nov 5 (Reuters) - Refiner Holly Corp (HOC.N) reported better-than-expected quarterly earnings, helped by increased refinery production and its specialty lubricants business.

However, the company warned that the refining industry will remain challenging until economic activity increases and refined product inventories are reduced.

Net income for the quarter was $23.5 million, or 47 cents a share, compared with $49.9 million, or $1.00 a share, in the year ago quarter.

Sales and other revenue fell 13 percent to $1.49 billion.

Analysts, on average, were expecting earnings of 45 cents a share, before special items, on revenue of $1.38 billion, according to Thomson Reuters I/B/E/S.

Total refinery production rose 79 percent to 185,480 barrels per day, helped by production from Holly's newly acquired Tulsa refinery and expansion of capacity at its Navajo and Woods Cross refineries.

Shares of the company closed at $28.64 Wednesday on the New York Stock Exchange. They have traded in a range of $10.84 to $33.53 in the last one year. (Reporting by Hezron Selvi in Bangalore; Editing by Maju Samuel)