Refiner PBF Energy posts bigger-than-expected Q3 loss as margins collapse
Oct 31 (Reuters) -PBF Energy PBF.N posted a bigger-than-expected third-quarter loss on Thursday as the U.S. refiner took a hit from weak fuel demand which shrunk refining margins.
Globally, refiners have seen a drop in profitability due to soft consumer and industrial demand, especially in China.
Bigger rivals Phillips 66 PSX.N and Valero Energy VLO.N posted drops in quarterly earnings, dented by weak margins, but still managed to beat analysts' estimates.
The company said its gross refining margin, excluding special items, per barrel of throughput stood at $6.79 in the quarter, a 69.4% drop from last year.
U.S. refiners are seeing their margins and profits normalize from recent record highs, following Russia's invasion of Ukraine in 2022.
"PBF's financial results for the quarter reflect the broader macro headwinds brought about by weaker-than-expected global demand and higher-than-anticipated refinery utilization," PBF Energy's CEO Matt Lucey said in a statement.
The company added it was conducting its last major turnaround at the Chalmette refinery in Louisiana and expects the work to be finished in November.
The company said its reported quarter's crude oil and feedstocks throughput stood at 935,600 barrels of oil per day (bpd), compared with the previous year's 939,700 bpd.
For the current quarter, it expects total throughput to be between 840,000 bpd and 900,000 bpd.
PBF also announced a 10% increase in quarterly dividend to $0.275 per share.
On an adjusted basis, the Parsippany, New Jersey-based company lost $1.50 per share in the third quarter, compared with estimates of a loss of $1.41 per share, according to data compiled by LSEG.
Reporting by Arunima Kumar in Bengaluru; Editing by Vijay Kishore
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
