BRENTWOOD, Tenn. - Delek US Holdings, Inc. (NYSE: NYSE:DK) reported an adjusted first-quarter loss per share of -$0.41, slightly outperforming analysts' expectations of a -$0.43 loss per share.
However, the company's revenue for the quarter fell short of the consensus estimate, coming in at $3.23 billion against an anticipated $3.28 billion.
The energy company's reported net loss for the first quarter ended March 31, 2024, was $32.6 million, or -$0.51 per share, compared to a net income of $64.3 million, or $0.95 per share, in the same quarter last year. The adjusted net loss stood at $26.2 million, a significant downturn from the previous year's adjusted net income of $92.7 million.
Delek's refining segment Adjusted EBITDA dropped to $106.1 million in the first quarter of 2024 from $230.2 million in the same period last year. This decline was primarily attributed to lower refining crack spreads, despite higher sales volume. The company's benchmark crack spreads decreased by an average of 22.2% from the previous year's levels.
On the other hand, the logistics segment showed improvement, with Adjusted EBITDA increasing to $99.7 million from $91.4 million year-over-year (YoY), driven by contributions from Delaware Gathering systems and annual rate increases. The retail segment Adjusted EBITDA remained relatively flat at $6.5 million compared to $6.4 million YoY.
Delek US also highlighted its strategic progress, including the execution of Delek Logistics (NYSE:DKL) debt and equity offerings, which improved its liquidity to approximately $800 million. The company diluted its DK ownership to 72.7% by adding 3.6 million DKL units for a total of 47.2 million outstanding units and increased volume activity.
President and CEO Avigal Soreq commented on the company's performance, stating, "We navigated regional demand headwinds early in the quarter and delivered solid operational performance. This resulted in a quarter that was in line with our guidance." He also emphasized the company's strategic advancements and its position to execute the sum of the parts initiative and realize value for stakeholders.
Looking ahead, Delek US plans to focus on running safe and reliable operations, enhancing its portfolio with strategic growth projects, and delivering shareholder value while maintaining financial strength and flexibility.
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