Feb 20 (Reuters) - Refiner HF Sinclair (DINO.N) , opens new tab on Thursday posted a bigger-than-expected loss for the fourth quarter, becoming the latest energy company to take a hit from weak refining margins and rising global capacity.

Bigger rivals Valero Energy (VLO.N) , opens new tab and Marathon Petroleum (MPC.N) , opens new tab, as well as energy heavyweights such as Exxon Mobil (XOM.N) , opens new tab, have seen refining profits normalize from 2022 peaks, when a post-pandemic demand recovery and sanctions over producer Russia's invasion of Ukraine had boosted fuel prices.

U.S. refinery margins, measured by the 3-2-1 crack spread , averaged $16.66 in the October-December quarter, down nearly 25% from a year earlier.

HF Sinclair's refinery adjusted margin shrank to $6.86 per produced barrel in the fourth quarter, from $13.58 a year earlier, due to weakness in the West and Mid-Continent regions caused by excess global fuel supplies hurting prices.

Overall sales of products that the company refines crude into, such as gasoline and diesel, fell 9.4% from the previous quarter to 596,800 barrels per day (bpd).

That pulled down revenues by 15% to $6.5 billion in the quarter.

However, the company's lubricants and midstream segments performed better than last year.

Adjusted profit in the lubricants segment grew thanks to a decrease in feedstock inventory charges, while the midstream segment benefited from higher tariffs charged to transport crude.

On an adjusted basis, the Dallas-based company reported a loss of $1.02 per share for the quarter ended December, compared with analysts' estimates for a loss of 90 cents, according to data compiled by LSEG.

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https://www.reuters.com/business/energy/hf-sinclair-posts-bigger-than-expected-loss-lower-refining-margins-2025-02-20/