The leaders of Delek US Holdings are cutting 300 jobs across the organization and suspending the company’s dividend as part of a push to boost 2021 cash flows by $200 million.
The moves, along with a 40 percent cut to capital expenditures, comes in response to what Delek executives are calling “a turbulent macro environment.” CEO Uzi Yemin and his team announced the measures on the heels of reporting a third-quarter net loss of $88.1 million, compared to a $51.3 million profit a year earlier, as revenues fell 12 percent to $2.06 billion.
A company spokesman said the 300 job cuts, which amount to about 8 percent of Delek’s workforce, are happening in various parts of the organization, which includes refining and logistics operations in Texas, Arkansas and Louisiana as well as a Brentwood home office.
The Delek board’s move to suspend the company’s dividend — which has more than doubled in the past three years — will save the company $23 million per quarter. Directors say they will prioritize share repurchases over the reinstatement of the dividend; the company was authorized to buy back more than $220 million worth of stock as of Sept. 30.
Shares of Delek (Ticker: DK) were up about 1 percent Wednesday to $13.40. They began the year around $33 and bottomed out below $8 in March.