PBF Energy Reports Third-Quarter Loss

(Reuters) – PBF Energy (NYSE:PBF) reported a larger-than-expected loss in the third quarter as the U.S. refiner struggled with weak fuel demand, shrinking refining margins.

Global Trends

Globally, refiners have experienced profitability declines due to soft consumer and industrial demand, particularly in China.

Rival companies like Phillips 66 (NYSE:PSX) and Valero Energy (NYSE:VLO) also reported drops in quarterly earnings, impacted by weak margins, yet they exceeded analysts' estimates.

Financial Highlights

The company announced its gross refining margin, excluding special items, was $6.79 per barrel of throughput, marking a 69.4% decrease compared to last year. U.S. refiners are normalizing their margins and profits after record highs, which were partly due to the consequences of Russia's invasion of Ukraine in 2022.

PBF Energy's CEO Matt Lucey commented, "PBF's financial results for the quarter reflect broader macro headwinds caused by weaker-than-expected global demand and higher refinery utilization."

Operational Updates

PBF is nearing completion of its last major turnaround at the Chalmette refinery in Louisiana, which is expected to wrap up in November. The company’s crude oil and feedstocks throughput averaged 935,600 barrels per day (bpd), slightly down from 939,700 bpd the previous year. For the current quarter, total throughput is anticipated to be between 840,000 bpd and 900,000 bpd.

Additionally, PBF declared a 10% increase in its quarterly dividend to $0.275 per share.

On an adjusted basis, the Parsippany, New Jersey-based company reported a loss of $1.50 per share in the third quarter, compared to estimates of a loss of $1.41 per share, as per data compiled by LSEG.