PBF Energy beats profit estimates on resilient fuel demand
Reuters
Published Nov 02, 2023 07:17AM ET
(Reuters) - Refiner PBF Energy (NYSE:PBF) beat Wall Street estimates for third quarter profit on Thursday, helped by steady demand for fuel while supplies remained tight.
Demand for refined products held strong in the quarter due to voluntary production cuts by leading OPEC+ oil producers Saudi Arabia and Russia.
Additionally, low levels of U.S. crude stockpile and increased exports contributed to keeping fuel supplies tight.
Excluding items, the New Jersey-based refiner earned $6.61 per share in the three months through Sept. 30, above analysts' average estimate of $4.84 per share, according to LSEG data.
It also raised its quarterly dividend by 25% to 25 cents.
However, its gross refining margin, excluding special items, fell to $1.92 billion in the quarter, compared with $2.26 billion a year earlier when margins reached record highs following Russia's invasion of Ukraine.
Rival Valero Energy (NYSE:VLO) last week also exceeded profit expectations but reported an 8.2% decrease in quarterly refining margins.
PBF said its total crude oil and feedstocks throughput fell nearly 4.6% to 86.4 million barrels in the third quarter, compared to last year.
The company said it expected fourth quarter throughput in the range of 870,000 bpd to 930,000 bpd.
"We saw increased volatility in the refined product markets as we entered the fourth quarter and we expect that volatility to continue," CEO Matt Lucey said in a statement.
The refiner said its St. Bernard Renewables project, which it runs in a joint venture with European energy firm Eni, posted profitability during its first full quarter of operations.
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Written By: Reuters
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