(Reuters) -Refiner HF Sinclair on Wednesday surpassed first-quarter revenue estimates aided by increased gas gross sales and introduced a brand new share buyback program of $1 billion.
World gas provides have tightened this yr following outages at Russian refineries after Ukrainian drone assaults shut a major part of Russia’s refining capability throughout the quarter.
U.S. product provided, a proxy for demand, averaged at 20.10 million barrels per day (bpd) on the finish of March, in contrast with 19.7 million bpd a yr earlier, in accordance with U.S. Power Data Administration information.
HF Sinclair’s gross sales volumes of refined merchandise rose 22.4% to 631,470 bpd, whereas renewable gas gross sales additionally elevated.
The corporate’s refinery utilization rose to 89.2% from 73.5% a yr in the past. Its throughput averaged 643,300 bpd, a 15% rise over the yr earlier, because it noticed decrease turnaround actions at its refineries.
“As we head into summer time driving season, we anticipate a good market setting and imagine we’re effectively positioned to generate robust earnings and money flows,” CEO Tim Go mentioned.
HF Sinclair’s refinery gross margin, nevertheless, declined 45% to $12.70 per produced barrel within the first quarter, it mentioned, as gas costs scaled again.
Bigger rivals Marathon Petroleum (NYSE:) and Valero Power (NYSE:) have additionally crushed their quarterly revenue estimates regardless of a hunch in margins.
Dallas, Texas-based HF Sinclair posted adjusted internet earnings of 71 cents per share for the three months ended March 31, in contrast with common analysts’ estimate of 65 cents per share, in accordance with LSEG information.
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