Shares of HF Sinclair Corporation (DINO) surged 5.02% in pre-market trading on Thursday after the independent U.S. refiner reported first-quarter results that beat analyst expectations, despite posting a loss.

The Dallas-based company reported an adjusted loss of $0.27 per share for the quarter ended March 31, which was significantly better than the $0.44 loss per share analysts had forecast. While HF Sinclair swung to a net loss of $4 million compared to a profit in the same quarter last year, the results signaled improving conditions in the refining sector.

HF Sinclair's adjusted EBITDA came in at $201 million, far exceeding the consensus estimate of $135.5 million. The company attributed the better-than-expected performance to a sequential improvement in refining margins, which had been under pressure in previous quarters due to market volatility and economic uncertainties.

Looking ahead, HF Sinclair provided an optimistic outlook for the second quarter. The company plans to operate its seven refineries at up to 93% of their combined capacity of 678,000 barrels per day in Q2 2025, indicating strong demand for refined products. Additionally, HF Sinclair announced that its 94,000 bpd Parco refinery will undergo a turnaround in Q2, which could potentially boost efficiency and output in the coming quarters.

Investors appear to be reacting positively to the company's ability to navigate challenging market conditions and its improved outlook for refining operations. The stock's pre-market surge suggests growing confidence in HF Sinclair's strategic positioning and potential for recovery in the refining sector.