Star Petroleum Refining (SPRC) Q2 2024 earnings summary

Executive summary

• Q2 2024 consolidated EBITDA was $39 million, with net profit at $9 million, reflecting a challenging margin environment and operational availability at 93.6% excluding turnaround.

• Year-to-date integration benefits from fuels and marketing business reached $15.9 million, with sales growth of 21% year-to-date and 18% in Q2.

• The company focused on maximizing shareholder returns and enterprise margin through cost efficiency, value chain integration, and operational excellence.

• Q2 2025 saw a net loss of $24.0 million, reversing a profit of $9.3 million in Q2 2024, with a six-month net loss of $3.3 million versus a profit of $119.5 million in the prior year.

• Total revenue for Q2 2025 was $1.89 billion, up from $1.59 billion in Q2 2024, but cost of sales increased, resulting in a gross loss.

Financial highlights

• Q2 2024 EBITDA and net profit declined sequentially due to lower refining margins and higher OpEx; net profit was $9 million.

• Q2 2024 consolidated EBITDA declined to $39.1 million from $165.7 million in Q2 2023; net profit dropped to $9.3 million from $110.2 million year-over-year.

• Q2 2025 revenue rose to $1.89 billion from $1.59 billion year-over-year, but gross loss of $14.1 million in Q2 2025 compared to gross profit of $30.8 million in Q2 2024.

• Six-month 2024 net profit was $120 million, up from the prior year, driven by higher refining margins, stock gains, and a 9% increase in sales revenue.

• Debt-to-equity ratio remains below 0.3, indicating a healthy balance sheet and strong liquidity.

Outlook and guidance

• No major capital projects planned; focus remains on asset optimization and targeted investments during the 2026 turnaround.

• Margin environment expected to improve in the second half of 2024, aided by SPM operations resuming in mid-July.

• Exploring bio and circular business opportunities and integration with petrochemical partners.

• Dividend policy remains at a minimum 50% payout, with H1 payout at 40% and potential for higher payout in H2.

• No explicit forward-looking guidance for 2025, but ongoing margin pressures are suggested.