HF Sinclair rises on Q2 profit beat; to separate lubricants and specialties business
DINO•Q2 profit beat and planned business separation lift HF Sinclair
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Shares of U.S. refiner HF Sinclair
DINO.Nrose 1% to $91.71. -
The company beat second-quarter profit estimates on stronger refining margins, posting $5.31 per share versus an estimate of $4.51 per share, according to LSEG data.
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DINO plans to separate its lubricants and specialties business into an independent publicly traded company.
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It expects to complete the separation within 12 to 18 months. The company also plans to retire its base oil refining assets in Mississauga, Ontario.
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TD Cowen analysts said the spun-off entity should garner a higher multiple than the consolidated company, though the benefits could be offset by lost EBITDA from the closure of its Ontario-based oil facility.
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The company posted net income of $892 million, or $4.93 per share, its strongest quarterly profit since 2022.
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Adjusted refinery gross margin per barrel rose to $25.95 in the second quarter, compared with $16.50 a year earlier.
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As of the last close, DINO was up 97% year to date.
