Delek US Holdings Inc Announces Q2 2024 Financial Results
Intellectia.AI Updated: 2024-08-06
Delek US Holdings, Inc. Announces Q2 2024 Financial Results
Delek US Holdings, Inc. (NYSE: DK) today announced its financial results for the second quarter ended June 30, 2024.
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 | YoY Change |
|---|---|---|---|
| Net Loss | $(37.2) million | Not Provided | Not Available |
| Adjusted Net Loss | $(59.3) million | Not Provided | Not Available |
| Adjusted EBITDA | $107.5 million | Not Provided | Not Available |
| Earnings Per Share | $(0.58) | Not Provided | Not Available |
| Adjusted EPS | $(0.92) | Not Provided | Not Available |
Interpretation : Delek US reported a net loss of $37.2 million or $(0.58) per share and an adjusted net loss of $59.3 million or $(0.92) per share for the second quarter of 2024. Adjusted EBITDA for the quarter was $107.5 million. The performance indicates a challenging quarter for Delek US, with significant losses reported.
Segment Performance
| Segment | Q2 2024 Adjusted EBITDA | Q2 2023 Adjusted EBITDA | YoY Change | Commentary |
|---|---|---|---|---|
| Refining | $42.1 million | $212.4 million | Decreased 80.2% | The significant drop was mainly attributed to lower refining crack spreads, which fell by an average of 21.1% from prior-year levels, and other inventory impacts. |
| Logistics | $100.6 million | $90.9 million | Increased 10.7% | Growth driven by strong contributions from the Delaware Gathering systems and annual rate increases. |
| Retail | $12.4 million | $15.0 million | Decreased 17.3% | The decline was primarily due to decreased sales from remodeling activities and reduced margins. |
| Corporate & Other | $(47.6) million | $(58.9) million | Decreased losses | Improvement driven by lower employee-related expenses. |
Interpretation : The refining segment experienced a dramatic decline in Adjusted EBITDA due to lower refining crack spreads, while the logistics segment saw growth. The retail segment faced challenges from remodeling and decreased margins.
Shareholder Distributions
The Board of Directors approved a regular quarterly dividend of $0.255 per share, to be paid on August 19, 2024, to shareholders of record on August 12, 2024. Additionally, Delek US paid $16.0 million in dividends and increased its regular quarterly dividend in July.
Comments from Company Officers
"We are excited about the significant progress we have made on our `Sum of the Parts' efforts," said Avigal Soreq, President and Chief Executive Officer of Delek US. He highlighted the strategic sale of retail assets, extended contracts, and other initiatives that collectively provide a cash infusion of over $500 million for Delek US with minimal to no standalone EBITDA loss. Soreq reiterated the focus on running safe and reliable operations and delivering shareholder value.
Strategic Initiatives and Operational Developments
- Entered into an agreement to sell retail assets for $385 million
- Signed a fuel supply agreement with FEMSA for ten years
- Amended and extended intercompany contracts between DK and DKL up to seven years
- Executed a drop-down of Wink to Webster (W2W) into DKL
- DKL signed an agreement to acquire H2O Midstream
- DKL announced the final investment decision (FID) on a new gas processing plant
Forward Guidance
Delek US did not provide specific forward guidance in this release.
Stock Price Movement
After the earnings release, Delek US's stock saw a marginal change of 0.023%.
Delek US continues to make significant strides in its strategic initiatives while facing a challenging quarter financially. The company's diversified approach aims to maintain financial strength and flexibility moving forward, highlighting its commitment to creating shareholder value.
For further details: Earnings Release
The report has been organized for clarity and readability, with unnecessary columns removed.
