Updated: HF Sinclair Achieves Record Quarterly Profits Driven by Refining Industry Boom, Appoints New CEO

Paragraphs 3 through 4 add details about the CEO

Katha Kalia

Reuters, October 28 - HF Sinclair (DINO.N) on Wednesday reported record quarterly profit, mainly driven by higher refining margins boosting earnings, and named Steve Ledbetter as its next CEO, effective January 1.

Ledbetter will take the helm as the refiner prepares to spin off its lubricants and specialty products business (link) into a separately listed company. The move aims to further focus on its core business amid a boom in the refining sector.

Since joining HF Sinclair in March 2023 as Executive Vice President of Commercial, he has served as President and Chief Operating Officer since July.

Ledbetter succeeds Timothy Go. Timothy Go had previously been (link) on voluntary leave of absence for nearly three months, and left the company in May under a mutually agreed severance package.

As Middle East conflicts escalate, tightening global supply and surging refining margins, U.S. refiners have greatly benefited from booming demand for fuel exports.

HF Sinclair’s refining segment’s adjusted core profit rose more than fourfold to $2.43 billion, while adjusted refining gross margin climbed to $54.22 per barrel from $19.16 a year earlier.

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Peers Valero Energy (link) VLO.N and Phillips 66 (link) PSX.N also reported strong quarterly profits, as U.S. refiners benefited from supply disruptions tightening the global fuel market.

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HF Sinclair executives said that refining capacity constraints in the Middle East remain and are unlikely to ease in the short term. They added that global refining disruptions are not expected to be fully resolved before 2028.

They also noted that ship-to-ship crude transfer in the Gulf of Oman and crude stored on tankers have pushed up freight costs, and that with much refining capacity still offline, shortages are likely to persist.

The refiner added that its entire system can process over 100,000 barrels of heavy crude per day, and it expects future growth to be driven mainly by internal investment rather than large-scale acquisitions.

According to data compiled by London Stock Exchange Group (LSEG), the Dallas, Texas-based company reported adjusted earnings per share of $11.75 for the three months ended September 30, versus an average analyst expectation of $7.65.

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