(Reuters) -Refiner HF Sinclair posted a bigger-than-expected fourth-quarter loss on Thursday, hurt by a slump in refining margins and a rise in global capacity.
U.S. refiners have seen earnings slide from record levels hit in 2022, when a recovery in demand following the COVID-19 pandemic and Russia’s invasion of Ukraine had driven up fuel prices.
U.S. refinery margins, measured by the 3-2-1 crack spread, averaged $16.66 in the October-December quarter, down nearly 25% from a year earlier.
Bigger rivals Valero Energy and Marathon Petroleum as well as energy majors such as Exxon Mobil and Chevron took hits to their earnings in the fourth quarter due to weaker refining margins.
HF Sinclair’s refinery adjusted margin was $6.86 per produced barrel in the fourth quarter, compared with $13.88 a year earlier.
On an adjusted basis, the Dallas-based company reported a loss of $1.02 per share for the quarter ended December, compared with analysts’ estimates of a loss of 90 cents, according to data compiled by LSEG.
(Reporting by Seher Dareen in Bengaluru; Editing by Devika Syamnath and Saumyadeb Chakrabarty)
