Yahoo Finance HF Sinclair Corp (DINO) Reports Mixed 2023 Q4 and Full-Year Financial Results
Q4 Net Loss: $(62.2) million, or $(0.34) per diluted share.
Q4 Adjusted Net Income: $164.6 million, or $0.87 per diluted share.
Full-Year Net Income: $1,589.7 million, or $8.29 per diluted share.
Full-Year Adjusted Net Income: $1,822.9 million, or $9.51 per diluted share.
Dividends and Share Repurchases: Returned $1,340.0 million to stockholders in 2023.
Decreased Gross Margins: Consolidated refinery gross margin fell by 41% in Q4.
Capital Allocation: Focused on executing corporate strategy and maximizing shareholder value.
On February 21, 2024, HF Sinclair Corp (NYSE:DINO) released its 8-K filing, detailing its financial performance for the fourth quarter and full year of 2023. The company, an integrated petroleum refiner, reported a net loss for Q4 but an adjusted net income that suggests underlying strength in its operations. HF Sinclair operates seven refineries with a significant crude oil throughput capacity and a substantial renewable diesel production capability. It also has a marketing business and holds a significant stake in Holly Energy Partners.
Q4 and Full-Year 2023 Performance Overview
HF Sinclair's Q4 results were marked by a reported net loss of $(62.2) million, contrasting with a net income of $587.0 million in the same quarter of the previous year. However, the adjusted net income for Q4 2023 was $164.6 million, down from $597.8 million in Q4 2022. The full-year net income for 2023 was $1,589.7 million, a decrease from $2,922.7 million in 2022. The adjusted net income for the full year was $1,822.9 million, down from the previous year's $2,922.7 million.
HF Sinclair's CEO, Tim Go, highlighted the company's strategic execution, including completing maintenance turnarounds and integrating the HEP business. Despite the challenges faced, such as lower refinery gross margins, the company returned over $1.3 billion to shareholders through dividends and share repurchases.
"HF Sinclairs strong fourth quarter and full year results reflect our continued commitment to executing our corporate strategy. In 2023, we completed maintenance turnarounds at all of our refineries during the year on schedule and on budget as we took another step towards improving reliability across our portfolio. In addition, in the fourth quarter we closed the transaction to buy-in our HEP business and furthered our efforts to integrate and optimize our asset base. During the year, we also returned over $1.3 billion in cash to shareholders through share repurchases and dividends, delivering on our cash return commitment to shareholders. Going forward, we remain focused on further executing our corporate strategy to maximize shareholder value. We believe the strength and diversification of our asset base, coupled with our disciplined approach to capital allocation, will position us for success." - Tim Go, CEO of HF Sinclair
Financial Highlights and Challenges
The company's consolidated refinery gross margin decreased by 41% to $13.88 per produced barrel in Q4 2023, compared to $23.47 in the same quarter of the previous year. The Renewables segment also reported a loss before interest and income taxes of $(75.9) million for Q4 2023, which was a larger loss than the $(34.7) million reported for Q4 2022.
Despite these challenges, HF Sinclair's financial achievements include a strong adjusted EBITDA and a commitment to shareholder returns. The company's disciplined approach to capital allocation and the diversification of its asset base are key factors in its strategy to navigate the volatile energy market.
As of December 31, 2023, HF Sinclair's cash and cash equivalents totaled $1,353.7 million. The company's consolidated debt stood at $2,739.1 million. HF Sinclair also announced an increase in its regular quarterly dividend to $0.50 per share, underscoring its commitment to shareholder value.
Analysis and Forward-Looking Commentary
HF Sinclair's performance in 2023 reflects the broader challenges in the oil and gas industry, including fluctuating commodity prices and margin pressures. However, the company's strategic initiatives, such as the integration of HEP and a focus on operational reliability, position it to potentially benefit from future market improvements. The company's strong cash position and commitment to returning value to shareholders through dividends and share repurchases are positive indicators for investors.
For more detailed information and to access the full earnings release, please visit HF Sinclair's 8-K filing.
HF Sinclair's next webcast conference call is scheduled for today, February 21, 2024, at 8:30 AM Eastern Time to discuss the fourth quarter financial results.
For further information or investor relations inquiries, contact Atanas H. Atanasov, Executive Vice President and Chief Financial Officer, or Craig Biery, Vice President of Investor Relations at HF Sinclair Corporation.
Explore the complete 8-K earnings release (here) from HF Sinclair Corp for further details.
This article first appeared on GuruFocus.
