Refined Surprise: PBF Energy Exceeds Expectations Despite Losses

PBF Energy reported unexpectedly high losses in the third quarter, attributed to weak demand for fuels that pressured refining margins. Refineries worldwide are observing a decline in profitability due to soft demand from both consumers and industry, particularly in China. Larger competitors such as Phillips 66 and Valero Energy also experienced declines in their quarterly results but were able to exceed analysts' expectations. PBF Energy recorded a crude margin of $6.79 per barrel in the reporting quarter, a decrease of 69.4% compared to the previous year. After record profits last year, triggered by the Ukraine war, margins and profits for US refineries are now normalizing. PBF Energy CEO Matt Lucey stated that the company's financial results reflect adverse macroeconomic conditions caused by weaker-than-expected global demand and higher refinery utilization. The company is currently conducting the last major maintenance work at the Chalmette refinery in Louisiana, which is expected to be completed in November. Crude throughput volume in the last quarter was 935,600 barrels per day, compared to 939,700 barrels per day the previous year. For the current quarter, throughput is expected to be between 840,000 and 900,000 barrels per day. Additionally, an increase in the quarterly dividend by 10% to $0.275 per share was announced. On an adjusted basis, PBF Energy reported a loss of $1.50 per share, while analysts had expected a loss of $1.41 per share, according to data from LSEG.