Q3 2024 Delek US Holdings Inc Earnings Call Transcript
Key Points
- Delek US Holdings Inc (DK) reported an adjusted EBITDA of approximately $71 million for the third quarter.
- The company has successfully closed a series of transactions, including the sale of retail assets to FEMSA, strengthening its balance sheet.
- Delek US Holdings Inc (DK) is implementing a new cost reduction and margin improvement plan, targeting at least $100 million in incremental annual savings by the second half of 2025.
- The company is actively working on increasing economic separation between DK and DKL, which is expected to bring additional cash flow benefits.
- Delek US Holdings Inc (DK) is committed to shareholder returns, having paid $16 million in dividends and repurchased $20 million of shares during the quarter.
- The company reported a net loss of $77 million or negative $1.20 per share for the quarter.
- Refining margins remain below mid-cycle, impacting overall financial performance.
- El Dorado refinery experienced lower-than-expected margins due to outages in key units, affecting production margins.
- Cash from operations was a use of $22 million, reflecting challenges in generating positive cash flow.
- The company faces a low margin environment, which could impact future profitability and cash flow generation.
Thank you for standing by. My name is Jay and I'll be your conference operator today. At this time, I would like to welcome everyone to the DK third-quarter earnings call. (Operator Instructions)
I would now like to turn the conference over to Robert Wright, Deputy Chief Financial Officer. You may begin.
Good morning and welcome to the Delek US third-quarter earnings conference call. Participants joining me on today's call Avigal Soreq, President and CEO; Joseph Israel, EVP Operations; Reuven Spiegel, EVP and Chief Financial Officer; and Mark Hobbs, EVP Corporate Development.
Today's presentation material can be found on the investor relations section of the Delek US website. Slide 2 contains our safe harbor statement regarding forward-looking comments. Any forward-looking statements made during today's call involve risks and uncertainties that may cause actual results to differ materially from today's comments, factors that could cause actual results to differ are included
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
