February 25, 2025 [Oil Price]- Texas-based refiner HF Sinclair Corporation on Thursday reported a loss for the fourth quarter compared to a profit for the same period of 2023 as refining margins in the United States continued to drop last year.

HF Sinclair booked an adjusted net loss of $191 million, or a loss of $1.02 per share, for Q4 2024, compared to an adjusted net income of $165 million, or $0.87 earnings per share, for the fourth quarter of 2023.

The loss for the fourth quarter of 2024 was bigger than the $0.89 per-share loss expected in the analyst consensus compiled by The Wall Street Journal.

HF Sinclair attributed the losses to the declining refining margins. 

The losses in the refining segment were “principally driven by lower adjusted refinery gross margins in both the West and Mid-Continent regions as a result of high global supply of transportation fuels across the industry and lower refined product sales volumes,” the company said. 

Adjusted refinery gross margin was $6.68 per produced barrel sold, a plunge of 51% compared to the gross margin of $13.58 per barrel for the fourth quarter of 2023.  

All U.S. refiners had to operate in an environment of declining refining margins in 2024.

The biggest refiners, Marathon Petroleum, Valero Energy, and Phillips 66, continued to lose profitability due to falling refining margins. But they beat analyst estimates for the fourth quarter.

Marathon Petroleum Corp reported higher-than-expected earnings for the fourth quarter of 2024, driven by stronger performance in the midstream and renewable diesel divisions.

Phillips 66 reported a loss for the fourth quarter, but this loss was smaller than analysts had forecast as the refiner’s renewable fuels division booked a profit in the last quarter of 2024.

Valero Energy reported higher-than-expected earnings for the fourth quarter amid a widely anticipated slump in profits.