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DINO NYSE· HF Sinclair Corp
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DINO NYSE· HF Sinclair Corp
Earnings report Q4 2023

DINO Reports Strong Revenue Growth in Latest Quarter

Segments of revenue

In the latest quarter, DINO reported total sales and other revenues of $31.96 billion. The company's revenue is primarily generated from its Refining and Lubricants & Specialties segments. The Refining segment contributed $1.93 billion in revenue, while the Lubricants & Specialties segment contributed $238.4 million. This represents a significant increase compared to the previous year, where the Refining segment generated $1.83 billion and the Lubricants & Specialties segment generated $314.8 million in revenue. It is worth noting that DINO also generates revenue from excess crude oil sales and renewable diesel, which contributed to the overall revenue growth.

Strengths

DINO's strong revenue growth in the latest quarter can be attributed to several factors. Firstly, the company benefited from healthy refining margins in both the West and Mid-Continent regions, driven by steady demand and tight supply. Additionally, DINO successfully executed planned turnarounds, which allowed them to focus on improving operational reliability. Management comments indicate that the company expects to maintain a strong performance in the first quarter of 2024, with a projected crude oil run rate of 585,000 – 615,000 barrels per day. However, they anticipate seasonal weakness in gasoline margins, which may impact refined product margins.

Challenges

Despite the overall strong performance, DINO faces challenges in its Marketing segment. The revenues from this segment, primarily consisting of branded gasoline and diesel fuel, were not explicitly mentioned in the report. This lack of information suggests that the Marketing segment may not have performed as well as the other segments, potentially indicating a weakness in this area of the business.

Noteworthy

It is noteworthy that DINO's revenue growth in the latest quarter was significant compared to the previous year. The company's focus on improving operational reliability through planned turnarounds and the favorable market conditions in the refining industry contributed to this growth. Additionally, the report mentions the impact of volatile regional and global economic conditions on DINO's future results, highlighting the importance of monitoring external factors that may affect the company's performance.

Summary

DINO reported strong revenue growth in the latest quarter, driven by healthy refining margins and successful execution of planned turnarounds. The Refining and Lubricants & Specialties segments were the primary contributors to the revenue increase. However, the performance of the Marketing segment was not explicitly mentioned, indicating a potential weakness in that area. Overall, DINO's financial performance reflects its ability to capitalize on favorable market conditions and execute maintenance strategies to improve operational reliability.

Source documents

Form 10-K  filed on Feb 21, 2024
8 pages scanned

Reference data

Company financials Q4 revenue 10.60B
Analyst estimates Q4 EPS beat by 8.45%
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