DALLAS - HF Sinclair Corporation (NYSE:DINO), an independent energy company, announced a net loss of $75.9 million, or $(0.40) per diluted share, for the third quarter ended September 30, 2024. This compares to a net income of $790.9 million, or $4.23 per diluted share, for the same quarter in the previous year. When excluding certain adjustments, the adjusted net income for the third quarter of 2024 was $96.5 million, or $0.51 per diluted share.
The company reported EBITDA of $98.6 million and Adjusted EBITDA of $316.0 million for the third quarter. During this period, HF Sinclair returned $221.8 million to stockholders through dividends and share repurchases. Additionally, a regular quarterly dividend of $0.50 per share was announced, payable on December 4, 2024, to holders of record on November 21, 2024.
HF Sinclair's CEO, Tim Go, expressed satisfaction with the company's financial and operational performance, attributing it to strong earnings in the Marketing, Midstream, and Lubricants & Specialties segments. Go emphasized the company's commitment to safe operations and the belief that its diversified business positions it to generate consistent cash flows and returns for shareholders.
The Refining segment reported a loss before interest and income taxes of $(212.1) million for the third quarter of 2024, a significant decrease from the income of $916.1 million in the third quarter of 2023. This was primarily due to lower adjusted refinery gross margins, which dropped by 59% to $10.79 per produced barrel sold, compared to $26.27 for the same period last year.
The Renewables segment also reported a loss before interest and income taxes of $(23.1) million for the third quarter of 2024, compared to income of $3.1 million in the third quarter of 2023. Despite increased sales volumes and feedstock optimization, lower indicator margins led to a decrease in Adjusted EBITDA for the segment.
The Marketing segment, however, saw a slight increase in income before interest and income taxes to $15.6 million for the third quarter of 2024, up from $15.1 million in the third quarter of 2023. The Lubricants & Specialties segment experienced a decrease in income before interest and income taxes, reporting $54.6 million for the third quarter of 2024, compared to $95.2 million for the same period last year.
The Midstream segment reported an income before interest and income taxes of $80.5 million for the third quarter of 2024, up from $78.2 million in the third quarter of 2023. Adjusted EBITDA for this segment increased primarily due to higher revenues from increased volumes and higher tariffs.
Net cash provided by operations for the third quarter of 2024 totaled $707.6 million. Cash and cash equivalents at the end of the quarter were $1,229.5 million, a decrease from $1,353.7 million at the end of 2023. The company's consolidated debt stood at $2,636.8 million as of September 30, 2024.
Based on a press release statement, HF Sinclair Corporation is headquartered in Dallas, Texas, and operates in refining, marketing, lubricants, and midstream sectors, with refineries in several states and a network of branded stations. The company also produces renewable diesel and specialty lubricants and markets base oils and other specialized lubricants internationally.
This information is based on a press release statement and does not represent an endorsement of HF Sinclair Corporation or its operations.
In other recent news, HF Sinclair Corporation's third-quarter earnings projections have been revised downwards by Mizuho Securities, JPMorgan, and Piper Sandler due to anticipated operational challenges and market conditions. Mizuho Securities reduced its price target for the company from $53.00 to $50.00, citing expected shortfalls in EBITDA, free cash flow, and earnings per share. JPMorgan maintained a neutral rating with a target of $51, revising the company's third-quarter earnings per share estimate downwards to $0.20 from the previous $0.70. Piper Sandler also revised its third-quarter forecasts, reflecting a decrease in earnings per share from $0.65 to $0.36, and a reduction in EBITDA from $365 million to $299 million.
Despite these revisions, HF Sinclair's secondary businesses showed relative stability in the third quarter of 2024. The company's financial results for the second quarter of 2024 showed a net income of $152 million, a decrease from the previous year. However, the company experienced improved utilization rates and sales volumes in its refining segment, alongside positive EBITDA in its renewables segment.
Further recent developments include HF Sinclair's strategic plans for 2024, which involve an investment of around $800 million in sustaining capital expenditures and a distributor partnership to expand the Solar branded business in Europe, the Middle East, and Africa. Despite the challenges, HF Sinclair returned $467 million to shareholders through dividends and share repurchases, ending the quarter with total liquidity of approximately $3.4 billion.
InvestingPro Insights
Adding to HF Sinclair Corporation's (NYSE:DINO) third-quarter results, recent data from InvestingPro provides additional context to the company's financial position and market performance.
Despite the reported net loss, InvestingPro data shows that DINO has been profitable over the last twelve months, with a P/E ratio of 7.88. This suggests that the recent quarter's loss may be an anomaly rather than a long-term trend. The company's price-to-book ratio of 0.79 indicates that it might be undervalued relative to its assets, aligning with the InvestingPro Tip that DINO is "trading at a low revenue valuation multiple."
The dividend yield of 4.9% is noteworthy, especially considering the InvestingPro Tip that DINO "has maintained dividend payments for 37 consecutive years." This long-standing dividend history could be attractive to income-focused investors, particularly in light of the company's recent announcement of a $0.50 per share quarterly dividend.
However, investors should be aware that 13 analysts have revised their earnings downwards for the upcoming period, according to InvestingPro Tips. This aligns with the company's reported challenges in the Refining and Renewables segments.
For those interested in a more comprehensive analysis, InvestingPro offers additional tips and insights. There are 7 more InvestingPro Tips available for DINO, which could provide valuable perspective on the company's financial health and market position.
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