Delek Q3 Loss Narrower Than Expected, Revenues Lag Estimates

About this update from Fomento Economico Mexicano Sab De Cv Units Cons. Of 5 Shsb

Delek US Holdings, Inc. DK reported a third-quarter 2024 adjusted net loss of $1.45 per share, narrower than the Zacks Consensus Estimate of a loss of $1.71, owing to lower year-over-year operating costs. The figure also deteriorated from the year-ago quarter’s profit of $2.02 per share. The loss was due to the Refining segment's weak year-on-year contributions.Net revenues decreased 35.9% year over year to $3 billion. The figure also missed the Zacks Consensus Estimate by $48 million.Delek US Holdings, Inc. Price, Consensus and EPS Surprise Delek US Holdings, Inc. price-consensus-eps-surprise-chart | Delek US Holdings, Inc. QuoteThe diversified downstream energy company’s adjusted EBITDA was $70.6 million compared with $345.1 million in the year-ago period.DK’s board of directors approved the regular quarterly dividend of 25.5 cents per share. The dividend will be paid on Nov. 18, 2024, to its shareholders of record as of Nov 12.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.In this quarter, the company introduced the Enterprise Optimization Plan, designed to increase overall profitability by at least $100 million.DK’s Segmental PerformancesRefining: The segment's adjusted EBITDA was $10.2 million, indicating a decline from the prior-year quarter's profit of $296.1 million. This significant’s year-over-year decline was due to lower refining crack spreads. In the third quarter of 2024, DK's benchmark crack spreads fell by an average of 49.1% from prior-year levels. Additionally, the reported figure missed our estimate of $76.9 million.Logistics: This unit represents Delek’s majority interest in Delek Logistics Partners, L.P.—a publicly traded master limited partnership that owns, operates, develops and acquires pipelines and other midstream assets.In the third quarter, the segment registered an adjusted EBITDA of $106.1 million compared with $96.5 million in the year-ago quarter. The figure also beat our estimate of $100.1 million. This year-over-year growth is driven by robust contributions from the Delaware Gathering systems, annual rate increases and the impact of the Wink to Webster (W2W) pipeline dropdown.DK’s FinancialsTotal operating expenses in the third quarter decreased about 29.6% year over year to $3.1 billion. Delek spent $128.5 million on capital programs in the same time frame.As of Sept. 30, 2024, the company had ...

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