HF Sinclair Reports Mixed Q4 Results, Weak Refining Margins Drive 93% Drop In Adjusted EBITDA

HF Sinclair Corporation DINO stock is trading lower after it reported mixed fourth-quarter 2024 results.

The company suffered an adjusted net loss of $191 million or a loss of $1.02 per share. Wall Street expected a 90-cent loss.

• Fourth-quarter revenue declined 195.14% year-over-year to $6.5 billion, beating the consensus of $6.19 billion.
• Adjusted EBITDA fell 93.5% YoY to $28 million in the quarter; the margin declined by 516 bps to 0.43%.
• Refining segment Adjusted EBITDA fell to $169 million from $276 million. Lower refinery margins amid high fuel supply and reduced sales caused the drop.
• Adjusted refinery gross margins fell 51% to $6.68 per barrel.
• Crude charge declined to 562,020 BPD (vs. 614,160 BPD) due to the El Dorado refinery turnaround and weaker market conditions.

Adjusted EBITDA in renewables booked a $9 million loss, impacted by a $20 million cost increase from higher-priced inventory drawdown.

Sales volumes remained steady at 62 million gallons (vs. 63 million).

The Lubricants & Specialties segment earned $46 million compared to $34 million a year ago, with EBITDA rising to $69 million (vs. $57 million YoY). Adjusted EBITDA grew to $70 million, driven by a lower FIFO charge of $2 million (vs. $30 million).

The Midstream segment earned $97 million, compared to $87 million in the 2023 same-quarter quarter, with EBITDA rising to $114 million (vs. $105 million). Adjusted EBITDA increased to $114 million, driven by higher revenues from increased tariffs.

Net cash used in operations was $141 million for the quarter. Cash and equivalents hovered at around $800 million (down $554 million YoY).

During the year, the company returned over $1 billion to shareholders through share repurchases and dividends. Consolidated debt stands at around $2.638 billion.

Dividend: HF Sinclair declared a dividend of 50 cents per share, payable on March 20, 2025, to holders of record of common stock on March 6, 2025.

Price Action: HF Sinclair shares traded lower by 1.74% at $37.21 at last check on Thursday.

Now Read:

• Quantum Computing Stocks RGTI, QUBT, IONQ, QBTS Cheer Microsoft’s ‘Majorana 1’ Launch: Satya Nadella Calls It A ‘Physics And Fabrication Breakthrough’

Image: Shutterstock