Refining Margin Squeeze Hits HF Sinclair's Q2 Bottom Line: Details

HF Sinclair Corporation DINO shares are trading lower after it reported second-quarter FY24 results.

Revenues remained flat Y/Y at $7.845 billion, beating the consensus of $7.649 billion.

Adjusted EBITDA fell 53% Y/Y to $405.8 million in the quarter. 

The Refining segment’s adjusted EBITDA fell to $186.9 million from $732.4 million a year earlier due to reduced refinery gross margins in the West and Mid-Continent regions caused by high industry-wide refining utilization rates.

Lubricants and Specialty Products segment EBITDA rose to $97.06 million from $70.89 million a year ago, led by higher sales volumes, optimized sales mix, and base oil integration.

Renewables segment adjusted EBITDA stood at $2.2 million vs. $(11.3) million the prior year. Marketing segment EBITDA was $15.5 million compared to $24.6 million a year ago. 

Adjusted EPS of $0.78 beat the consensus of $0.71.

Operating cash flow stood at $225.9 million in the quarter. As of June-end, the company had $866.3 million in cash and equivalents.

The company paid $467.1 million to stockholders through dividends and share repurchases in the second quarter. 

Dividend: DINO declared a dividend of $0.50 per share, payable on September 5, to holders of record as of August 21.

HF Sinclair’s Chief Executive Officer, Tim Go, said, “Our second quarter, 2024 performance reflects continued progress on our commitment to deliver safe and reliable operations, resulting in higher utilization and lower operating costs per barrel in our refining business.”

“We are seeing the benefits of our strategic initiatives across all of our businesses, including strong contributions from our Lubricants & Specialties and Midstream business segments again this quarter.”

Investors can gain exposure to the stock via VanEck Oil Refiners ETF  CRAK and First Trust Energy AlphaDEX Fund FXN.

Price Action: DINO shares are down 3.81% at $49.51 at the last check Thursday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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