May 1 (Reuters) - U.S. refiner HF Sinclair posted a smaller-than-expected loss in the first quarter on Thursday, supported by sequential improvement in refining margins.
The 3-2-1 crack spread , a key indicator of U.S. refining margins, rebounded in early 2025 from multi-year lows as nationwide refinery maintenance tightened fuel supply.
But the margins have since been under pressure due to broader macroeconomic headwinds stemming from the sweeping tariffs and an intense trade war between the U.S. and China — factors that could weigh on demand for refined products such as gasoline, diesel and jet fuel.
Refiners process crude oil into gasoline, diesel, jet fuel and other products.
HF Sinclair's throughput, or the total crude processed, during the first quarter rose to 646,580 barrels per day from 643,300 bpd a year earlier. Refinery utilization averaged 89.4%, compared to the firm's own forecast of 91%.
The company said its adjusted refinery margins were $9.12 per produced barrel, 28% lower than a year earlier but still above the $6.68 per barrel during the fourth quarter.
Core profit in the marketing segment, however, jumped 80%, helped by higher margins. At its midstream segment, adjusted core profit rose 8%, driven by higher pipeline revenue.
The Dallas, Texas-based company posted an adjusted loss of 27 cents per share during the January-March quarter, compared with analysts' average estimate of a 44-cent-per-share loss, according to data compiled by LSEG.
HF Sinclair's results echo those of bigger rivals such as Valero Energy and Phillips 66, which also reported quarterly losses last week on weak margins.
Reporting by Vallari Srivastava in Bengaluru; Editing by Shilpi Majumdar and Krishna Chandra Eluri
Source: Reuters