Delek US Holdings Inc (DK, Financial) released its financial results for the third quarter ended September 30, 2023, on November 7, 2023. The company reported a net income of $128.7 million or $1.97 per share, and an adjusted net income of $131.9 million or $2.02 per share. The adjusted EBITDA for the quarter was $345.1 million.
Company Performance and Financial Achievements
Delek US Holdings delivered record total throughput in Refining and quarterly earnings in Logistics. The company returned $40.2 million to shareholders through dividends and share buybacks, and additionally repurchased $20.0 million in shares subsequent to the quarter end. The company also paid down $175.6 million in debt and increased its quarterly dividend to $0.24 per share in November.
We achieved strong financial results in the third quarter by capturing favorable margins across our refining, logistics and retail businesses," said Avigal Soreq, President and Chief Executive Officer of Delek US.
Key Financial Details
The refining segment Adjusted EBITDA was $285.5 million in Q3 2023, compared with $355.7 million in the same quarter last year. The logistics segment Adjusted EBITDA in Q3 2023 was $96.5 million, up from $91.5 million in the prior year quarter. Adjusted EBITDA for the retail segment was $16.2 million, compared with $13.5 million in the prior-year period.
As of September 30, 2023, Delek US had a cash balance of $901.7 million and total consolidated long-term debt of $2,638.0 million, resulting in net debt of $1,736.3 million.
Outlook and Strategy
Delek US Holdings continues to focus on its long-term strategic objectives, including efforts to unlock value from its business and advance cost efficiency measures. The company is well positioned to operate under mid-cycle market conditions.
Financial strength and flexibility, as well as returning value to shareholders, remain key components of our strategy. During the quarter, we reduced debt by $175.6 million, we paid an increased dividend, and repurchased $25.0 million of stock. In the 4th quarter, the board of directors increased the quarterly dividend for the fifth consecutive quarter to $0.24 per share, and we repurchased an additional $20.0 million of stock. Year-to-date, we reduced debt by $415.7 million and returned $130.3 million of capital to shareholders through dividends and share repurchases,” Soreq continued.
Explore the complete 8-K earnings release (here) from Delek US Holdings Inc for further details.
