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Delek US Holdings (NYSE:) Inc. reported strong Q3 2023 results, marked by 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 announcement was made by CEO Avigal Soreq, who highlighted the firm’s record total throughput in refining and robust quarterly earnings in logistics, which drove an adjusted EBITDA of $345.1 million.
The company also reported a strong financial position, with a cash balance of $901.7 million as of September 30, 2023, and a total long-term debt of $2,638.0 million. In line with its long-term strategic objectives focusing on cost efficiency measures, Delek US reduced its debt by $175.6 million in Q3, totaling $415.7 million year-to-date.
Reflecting its financial strength and flexibility under mid-cycle market conditions, the firm increased its quarterly dividend for the fifth consecutive quarter to $0.24 per share this November. This is part of Delek US’s broader strategy to return capital to shareholders, having returned $130.3 million of capital year-to-date.
In addition to dividends, Delek US returned $40.2 million to shareholders through share buybacks during the quarter. The company also repurchased an additional $20.0 million in shares post-quarter end.
The company credited favorable margins across its businesses for its strong performance this quarter. More details about the company’s Q3 performance can be found in the complete 8-K earnings release.
InvestingPro Insights
Drawing on real-time data from InvestingPro, Delek US Holdings Inc . has a market capitalization of $1720M and has seen a significant price uptick over the last six months with a 26.22% total return. Despite a P/E ratio of -31.88, reflecting its non-profitability over the last twelve months, analysts are predicting a turn-around with profitability expected this year.
InvestingPro Tips highlight that the company operates under a significant debt burden, which aligns with the reported long-term debt of $2,638.0 million. On the other hand, the management’s aggressive share buyback strategy, as evidenced by the $40.2 million returned to shareholders through buybacks during the quarter, could be a positive sign for investors.
For more in-depth analysis and additional tips, consider exploring the InvestingPro platform, which offers a wealth of information to assist in making informed investment decisions. Currently, there are 11 more tips available for Delek US Holdings Inc. on InvestingPro.
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