HF Sinclair CEO takes voluntary leave amid disclosure review, US refiner’s shares fall

By Tanay Dhumal and Nicole Jao

NEW YORK, Feb 18 (Reuters) – HF Sinclair CEO Tim Go is taking a voluntary leave amid a disclosure review, the U.S. refinery said on Wednesday, and its shares plunged despite higher-than-expected fourth-quarter profit.

The Dallas-based refiner said Go has requested a leave of absence amid an internal review of its disclosure processes. Board Chair Franklin Myers has stepped in as interim CEO.

Shares of the refiner fell 14% in morning trading, after it said the board’s audit committee is assessing the company’s disclosure processes.

“We are working to complete this review as soon as possible,” Myers told investors during a conference call. He said the company is comfortable with the financial statements and disclosures it released on Wednesday and has no expectation they will change.

The company said its board has directed its nominating, governance and social responsibility committee to determine what action should be taken regarding the CEO’s role.

STRONG MARGINS LIFT QUARTERLY RESULTS

HF Sinclair posted a bigger-than-expected profit for the fourth quarter, supported by higher refining margins for its products.

Quarterly U.S. refinery margins, measured by the 3-2-1 crack spread, were up about 45% on average in the fourth quarter from a year earlier.

Larger rivals Valero Energy, Marathon Petroleum and Phillips 66 also reported upbeat fourth-quarter results, citing higher margins.

U.S. fuelmaker margins have begun to rebound from multi-year lows touched in 2024, a pullback that followed a spike triggered by sanctions on Russia after it invaded Ukraine, which had constricted global supply.

The company’s adjusted refinery gross margin more than doubled to $16.28 per barrel during the period.

Its quarterly throughput volumes were up 2.7% at 620,010 barrels per day, while refinery utilization was 82.1%, compared with 82.9% a year ago.

HF Sinclair posted an adjusted profit of $1.20 per share for the three months ended December 31, while analysts on average estimated 45 cents, according to data compiled by LSEG.

(Reporting by Tanay Dhumal in Bengaluru and Nicole Jao in New York; Editing by Shilpi Majumdar, Rod Nickel)