US refiner HF Sinclair posts smaller-than-expected loss in first quarter

By Nicole Jao, Vallari Srivastava

NEW YORK, May 1 (Reuters) - U.S. refiner HF Sinclair DINO.N posted a smaller-than-expected loss in the first quarter on Thursday, supported by an improvement in refining margins.

The refining industry is bracing for fallout from U.S.-China trade tensions, which could dampen demand for products including gasoline, diesel and jet fuel.

U.S. refining margins, as measured by the 3-2-1 crack spread CL321-1=R, improved slightly in early 2025 after hitting multi-year lows last year, but continued to be under pressure from lingering market challenges.

"For the first quarter, we delivered strong results in our marketing, midstream and lubricants and specialties businesses and saw encouraging sequential improvement in refining," Chief Executive Tim Go said during a call with analysts on Thursday.

The Dallas-based company navigated through extreme volatility around tariffs and other market headwinds, Go said.

HF Sinclair's share price gained more than 4% following earnings release.

Its first-quarter refining margins were helped by better-than-expected performance at refineries in the mid-continent region, Tudor, Pickering, Holt & Co analyst Matthew Blair said.

The company's adjusted refinery margins were $9.12 per produced barrel, 28% lower than a year earlier but still above the $6.68 per barrel during the fourth quarter.

Core profit in the marketing segment, however, jumped 80%, helped by higher margins. At its midstream segment, adjusted core profit rose 8%, driven by higher pipeline revenue.

The refiner posted an adjusted loss of 27 cents per share during the January-March quarter, compared with analysts' average estimate of a 44-cent-per-share loss, according to data compiled by LSEG.

HF Sinclair's throughput, or the total crude processed, during the first quarter rose to 646,580 barrels per day from 643,300 bpd a year earlier. Refinery utilization averaged 89.4%, compared to the firm's own forecast of 91%.

The refiner plans to operate its facilities at up to 93% of combined capacity in the second quarter of 2025.

HF Sinclair's results echo those of bigger rivals such as Valero Energy VLO.N and Phillips 66 PSX.N, which also reported quarterly losses.