Thu, Nov 7, 5:19 PM (254 days ago)
Delek US Holdings, Inc. (NYSE: DK) reported a challenging third quarter of 2024, with a consolidated net loss of $67.5 million compared to a profit of $136.1 million in Q3 2023. Revenues fell 34.3% to $3,042.4 million, primarily due to lower refined product prices and decreased sales volumes. The refining segment's EBITDA plummeted 95.7%, driven by a significant decline in crack spreads and reduced throughput. Operating expenses decreased, but asset impairments of $9.2 million were recorded due to idling biodiesel facilities and pipeline assets. The logistics segment saw a revenue drop of 22.4% to $214.1 million, influenced by reduced West Texas marketing operations and a shift in accounting for certain fees. However, the acquisition of H2O Midstream is expected to enhance cash flows and diversify revenue streams. Delek's liquidity remains strong at $2.58 billion, with $1,037.6 million in cash. The company has strategically focused on cost reduction and operational excellence amid volatile market conditions and geopolitical uncertainties, while maintaining a balanced approach to shareholder returns through dividends and stock repurchases.