DALLAS - HF Sinclair Corporation (NYSE:DINO) today reported a first-quarter earnings beat, with adjusted earnings per share (EPS) of $0.71, surpassing the analyst consensus estimate of $0.60.
The company's revenue for the quarter was $7.03 billion, which did not meet the consensus estimate of $7.54 billion. Despite the revenue shortfall, the market responded positively to the earnings report, with shares rising 3.4%, indicating investor confidence in the company's financial performance.
HF Sinclair's first-quarter results showcase a robust performance amid challenging market conditions. The company's adjusted net income for the quarter stood at $142.3 million, a decrease from the $394.1 million reported in the same quarter last year. The reported net income attributable to HF Sinclair stockholders was $314.7 million, or $1.57 per diluted share, compared to $353.3 million, or $1.79 per diluted share, for the same period in the previous year.
Chief Executive Officer Tim Go expressed satisfaction with the company's first-quarter execution, highlighting the strategic focus on reliability, portfolio optimization, and strong cash flow generation. Go emphasized the return of $269 million to shareholders through dividends and share repurchases during the quarter and the announcement of a new $1.0 billion share repurchase program, reinforcing the commitment to shareholder returns.
The company's refining segment experienced a decrease in income before interest and income taxes, primarily due to lower refinery gross margins in the West and Mid-Continent regions, which were partially offset by higher refined product sales volumes. The renewables segment reported a loss, attributed to weakened RINs and Low Carbon Fuel Standard prices. However, sales volumes increased compared to the same quarter last year. The marketing segment saw an improvement, driven by stronger branded wholesale margins.
Looking ahead, HF Sinclair anticipates a favorable market environment as the summer driving season approaches, positioning the company to potentially generate strong earnings and cash flows.
HF Sinclair's financial position remains solid, with net cash provided by operations totaling $316.9 million and cash and cash equivalents totaling $1,240.9 million by the end of the first quarter.
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