In This Article:
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Adjusted EBITDA: Approximately $71 million for the third quarter.
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Net Loss: $77 million or negative $1.20 per share.
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Adjusted Net Loss: $93 million or negative $1.45 per share.
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Refining Margin: $5 to $6 below mid-cycle.
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Dividends Paid: $16 million during the quarter.
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Share Buybacks: $20 million worth of shares repurchased.
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Cash from Operations: Use of $22 million.
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Capital Expenditures: $78 million for the third quarter.
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Logistics Segment EBITDA: $106 million in adjusted EBITDA.
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Operating Expenses: Estimated between $177 million and $188 million for Q4 2024.
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General and Administrative Expenses: Estimated between $53 million and $58 million for Q4 2024.
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Depreciation and Amortization: Expected between $95 million and $105 million for Q4 2024.
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Net Interest Expense: Expected between $75 million and $80 million for Q4 2024.
Release Date: November 06, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Delek US Holdings Inc (NYSE:DK) reported an adjusted EBITDA of approximately $71 million for the third quarter.
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The company has successfully closed a series of transactions, including the sale of retail assets to FEMSA, strengthening its balance sheet.
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Delek US Holdings Inc (NYSE:DK) is implementing a new cost reduction and margin improvement plan, targeting at least $100 million in incremental annual savings by the second half of 2025.
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The company is actively working on increasing economic separation between DK and DKL, which is expected to bring additional cash flow benefits.
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Delek US Holdings Inc (NYSE:DK) is committed to shareholder returns, having paid $16 million in dividends and repurchased $20 million of shares during the quarter.
Negative Points
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The company reported a net loss of $77 million or negative $1.20 per share for the quarter.
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Refining margins remain below mid-cycle, impacting overall financial performance.
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El Dorado refinery experienced lower-than-expected margins due to outages in key units, affecting production margins.
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Cash from operations was a use of $22 million, reflecting challenges in generating positive cash flow.
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The company faces a low margin environment, which could impact future profitability and cash flow generation.
Q & A Highlights
Q: Can you provide more details on the El Dorado refinery's performance and future improvements? A: Avigal Soreq, President and CEO, explained that El Dorado is a complex refinery with significant flexibility. Joseph Israel, EVP Operations, added that they are addressing market access gaps and implementing new processes and logistics to improve profitability. By mid-next year, they expect to achieve an additional $2 per barrel in net margins.