HF Sinclair Q3 Refining Income Up 411% Y-o-Y to $2.4B


   
Daniel Rodriguez Huerta
DTN Refined Fuels Market Reporter

   CALGARY, CANADA (DTN) - Dallas-based refiner HF Sinclair Corp. reported 
Wednesday (10/28) a five-fold year-on-year increase in third quarter refining 
income, driven by tight supply of transportation fuels, elevated crack spreads 
and federal biofuel blending exemptions.

Third-quarter 2026 refining segment income before interest and income taxes of 
$2.435 billion versus $476 million in the third quarter 2025.Adjusted refinery 
gross margin jumped 183% to $54.22 bbl from $19.16 bbl. Crude charge averaged 
614,060 bpd versus 639,050 bpd a year ago during the same period, and 
utilization fell to 90.6% from 94.3% on 678,000 bpd of crude capacity.Refining 
adjusted EBITDA was $2.582 billion versus $661 million, helped by benefits from 
small refinery Renewable Identification Numbers (RINs) waivers granted by the 
Environmental Protection Agency. Renewables segment income was $123 million 
versus a loss of $55 million on higher RINs prices, larger Producer's Tax 
Credit benefits and sales of 1.50 million bbl versus 1.36 million bbl.Crude 
charge averaged 614,060 bpd versus 639,050 bpd a year ago during the same 
period, and utilization fell to 90.6% from 94.3% on 678,000 bpd of crude 
capacity.Mid-Continent crude charge fell 10.70% to 250,340 bpd from 280,240 bpd 
during a planned turnaround at its 135,000 bpd El Dorado refinery in Kansas, 
and utilization dropped to 96.3% from 107.80%. Western region crude charge 
edged up 1.40% to 363,720 bpd.Marketing segment income was $31 million versus 
$22 million, with branded fuel sales of 10.00 million bbl versus 8.58 million 
bbl.Lubricants & Specialties segment income was $38 million versus $52 million 
after $109 million of special items tied to retirement of its Mississauga, 
Ontario base oil refining assets. HF Sinclair plans to separate the segment 
into an independent public company, substantially completed over 2027.


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