Shares of PBF Energy Inc. PBF declined 1.6% since it reported lower-than-expected third-quarter 2024 earnings on Oct. 31.
The company reported a third-quarter 2024 adjusted loss of $1.50 per share, wider than the Zacks Consensus Estimate of $1.40. The bottom line also compared unfavorably with the year-ago quarter’s reported earnings of $6.61.
Total quarterly revenues declined to $8.38 billion from $10.73 billion in the prior-year quarter. However, the top line beat the Zacks Consensus Estimate of $8.12 billion.
The weak quarterly earnings were primarily due to lower throughput volumes and a fall in refining margins. However, reduced costs and expenses partially offset the negative.
PBF Energy Inc. Price, Consensus and EPS Surprise
PBF Energy Inc. price-consensus-eps-surprise-chart | PBF Energy Inc. Quote
Dividend Hike
Along with the third-quarter earnings, the refining player announced a 10% increase in its quarterly dividend. The new dividend of 27.5 cents will likely be paid on Nov. 27 to its shareholders of record on Nov. 13.
Segmental Performance
PBF Energy reported an operating loss of $341.2 million in the Refining segment against an operating income of $1175.7 million reported a year ago. The figure also lagged our operating income estimate of $374.8 million.
The company generated a profit of $51.3 million from the Logistics segment, indicating an increase from the prior-year quarter’s reported level of $49.6 million. Our estimate for the same was pinned at $50.2 million.
Throughput Analysis
Volumes
In the quarter under review, crude oil and feedstock throughput volumes totaled 935.6 thousand barrels per day (bpd), lower than the year-ago figure of 939.7 thousand bpd. The figure surpassed our estimate of 926.8 bpd.
The East Coast, Mid-Continent, Gulf Coast and West Coast regions accounted for 33%, 17%, 18% and 32%, respectively, of the total oil and feedstock throughput volume.
Margins
The company-wide gross refining margin per barrel of throughput, excluding special items, was $6.79, lower than the year-earlier figure of $22.24.
The gross refining margin per barrel of throughput was $4.31 for the East Coast, down from $17.51 in the year-ago quarter. The realized refining margin was $6.84 per barrel for the Gulf Coast, down from $18.03 a year ago. The metric was $9.83 and $7.65 per barrel in the Mid-Continent and West Coast, respectively, compared with the figures of $17.46 and $32.85 a year ago.
Costs & Expenses
Total costs and expenses in the reported quarter were $8.8 billion, down from $9.7 billion in the year-ago period.
Cost of sales, including operating expenses, cost of products and others, and depreciation and amortization expenses, amounted to $8.67 billion, lower than $9.50 billion reported a year ago.
Capital Expenditure & Balance Sheet
PBF Energy spent $150.9 million in capital on refining operations and $0.9 million on logistics businesses.
At the end of the third quarter, it had cash and cash equivalents of $0.98 billion. As of Sept. 30, PBF had a total debt of $1.25 billion, resulting in a total debt-to-capitalization of 17%.
Outlook
For the fourth quarter, PBF anticipates total throughput volumes to be in the range of 840,000-900,000 barrels per day. It expects full-year 2024 refining capital expenditures to be in the $850 million range.
PBF’s Zacks Rank and Key Refining Players
Currently, PBF carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank stocks here.
Some other refining companies that also reported their respective earnings are Marathon Petroleum Corporation MPC, Valero Energy Corporation VLO and Phillips 66 PSX.
While both Marathon Petroleum and Philips 66 topped the Q3 earnings estimate, Valero missed consensus estimate for earnings due to lower throughput volumes.
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