HF Sinclair

HF Sinclair earned about 2 billion dollars in the third quarter, five times the 403 million it made a year ago. Fuel is scarce around the world, so every barrel it refined brought in far more money. Even its side businesses helped, with renewable diesel swinging from a 55 million dollar loss to a 123 million dollar profit.

The company handed 572 million dollars back to shareholders this quarter, including 479 million to buy back its own stock. It now holds about 3.3 billion dollars in cash, up from under 1 billion at the start of the year, against 2.8 billion in debt. It is also keeping its quarterly dividend at 52.5 cents per share.

HF Sinclair made about 54 dollars on every barrel this quarter, nearly triple the 19 dollars it made a year ago. That windfall comes from a global fuel shortage tied to the conflicts in the Middle East and Ukraine. When supply comes back, refining profits will likely drift back toward last year's levels.

Part of this quarter's jump came from the EPA letting smaller refineries skip some costly renewable fuel rules, and that perk could be taken back. The company also refined less oil, about 614,000 barrels a day versus 639,000 a year ago, while its Kansas refinery was down for planned maintenance. Its smaller refineries also tend to feel the pain first when the cycle turns.