HF Sinclair Reports $4 Million Net Loss in Q1 2025, Down from $315 Million Profit in Q1 2024

HF Sinclair Corporation reported a net loss of $4 million for the first quarter of 2025, a significant decline from the net income of $315 million recorded in the same period of 2024. This translates to a loss of $0.02 per share, compared to earnings of $1.57 per share a year earlier. The company's total revenues decreased by 9% to $6.37 billion, down from $7.03 billion, primarily due to lower refined product sales prices and volumes. The decrease in profitability was attributed to reduced refining margins in the Mid-Continent and West regions, as well as the impact of a planned turnaround at the Tulsa refinery.

In terms of operational metrics, HF Sinclair's adjusted refinery gross margin per produced barrel sold fell to $9.12, down from $12.70 in the prior year. The company processed an average of 646,580 barrels per day (BPD) during the quarter, slightly up from 643,300 BPD in the same quarter of 2024. The refining segment's gross margin was adversely affected by lower average sales prices, although this was partially offset by decreased crude oil and feedstock prices. The company also reported a decrease in operating expenses, which fell to $596 million from $607 million, primarily due to lower maintenance costs.

Strategically, HF Sinclair has been active in managing its debt and capital structure. The company repaid $350 million under its HEP Credit Agreement and issued $1.4 billion in senior notes in January 2025, which were used to fund early debt settlements and other obligations. As of March 31, 2025, total debt stood at $2.68 billion, a slight increase from $2.64 billion at the end of 2024. The company also announced a new $2 billion senior unsecured revolving credit facility, which provides additional liquidity and financial flexibility.

On the operational front, HF Sinclair continues to expand its marketing efforts, adding 37 net new branded sites during the quarter, bringing the total to 1,664. The marketing segment reported revenues of $686 million, down from $776 million in the previous year, but the gross margin improved to $0.09 per gallon sold from $0.05. The company remains focused on optimizing its operations and enhancing its market presence, particularly in the renewable fuels sector, where it has seen improved pricing for Renewable Identification Numbers (RINs) and Low Carbon Fuel Standard (LCFS) credits.

Looking ahead, HF Sinclair anticipates running between 600,000 to 630,000 BPD of crude oil in the second quarter of 2025, reflecting the completion of planned turnarounds. The company expects to continue facing challenges related to refining margins and product sales volumes but remains committed to adjusting its operational plans in response to evolving market conditions. The outlook for the renewables segment remains cautiously optimistic, contingent on the implementation of relevant tax credits and market dynamics.