(Reuters) -Refiner HF Sinclair beat Wall Street estimates for second-quarter profit on Thursday as higher refining margins helped offset lower throughput volumes, sending its shares about 1% higher to $43.80 in premarket trading.
Top U.S. refiners were expected to post higher second-quarter profits, rebounding from first-quarter losses as stronger-than-expected diesel margins lifted earnings. The improved margins helped peers such as Valero Energy and Phillips 66 surpass Wall Street estimates.
Fuel makers have seen an unexpected boost in profits from key products in recent months, offering relief after earnings retreated from 2022 highs driven by a post-pandemic demand rebound and supply disruptions following Russia’s invasion of Ukraine.
The company’s adjusted refinery gross margin per barrel was $16.50 in the quarter, up about 46% from a year earlier. Its adjusted margin in the mid-continent region jumped about 85%, to $15.52 per barrel.
The higher quarterly margins helped offset throughput volumes, which were down 2.4% at 660,640 barrels per day from a year earlier, while refinery utilization was down at 90.8% from 93.6% in the same period.
The lower volumes were due to turnaround activities at its Tulsa and Parco refineries in the reported quarter, the company said in a statement.
HF Sinclair reported adjusted profit of $1.70 per share for the three months ended June 30, compared with analysts’ average estimate of $1.02 per share, according to data compiled by LSEG.
(Reporting by Tanay Dhumal in Bengaluru; Editing by Pooja Desai)
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