Delek (DK) Q1 Loss Narrower Than Expected, Sales Decline Y/Y

Core Insights - Delek US Holdings, Inc. reported a first-quarter 2024 adjusted net loss of 41 cents per share, which was better than the Zacks Consensus Estimate of a loss of 56 cents per share, but a decline from a profit of $1.37 per share in the same quarter last year, primarily due to weak contributions from the Refining segment [1][2] Financial Performance - Net revenues decreased by 17.7% year over year to $3.2 billion, missing the consensus estimate of $3.6 billion [2] - Adjusted EBITDA for the quarter was $158.7 million, down from $284.6 million in the prior year [2] - Total operating expenses decreased by approximately 15.5% year over year to $3.2 billion [8] Segmental Performances - Refining: Adjusted EBITDA was $106.1 million, down from $192.1 million in the prior-year quarter, attributed to a 22.2% decline in benchmark crack spreads [3] - Logistics: Adjusted EBITDA increased to $99.7 million from $91.4 million year over year, although it missed projections [5] - Retail: Adjusted EBITDA was $6.5 million, slightly up from $6.4 million in the previous year, but below expectations; merchandise sales declined to $70.7 million from $73.9 million [6] Dividend and Capital Expenditures - The board approved a 2% increase in regular dividends, raising the quarterly payout to 25 cents per share, paid on May 24, 2024 [2] - For full-year 2024, capital expenditures are expected to be approximately $330 million, with allocations of $220 million for Refining, $70 million for Logistics, $15 million for Retail, and $25 million for Corporate/Other [9] Guidance - For the second quarter, the company anticipates operating costs between $215-$225 million, general and administrative expenses of $60-$65 million, and depreciation and amortization costs between $90 million and $95 million [10] - Projected total crude throughput is between 287,000-300,000 barrels per day [10]