PBF Energy posts smaller-than-expected loss as refining margins improve

PBF Energy posted a smaller-than-expected quarterly loss on Thursday, as higher margins helped the U.S. refiner offset downtime at its fire-hit Martinez refinery in California.

PBF Energy posted a smaller-than-expected quarterly loss on Thursday, as higher margins helped the U.S. refiner offset downtime at its fire-hit Martinez refinery in California. U.S. refining margins have risen from multi-year lows, rebounding after last year's slump when profits cooled from post-pandemic highs and supply shocks triggered by Russia's invasion of Ukraine in 2022 faded.

The recovery also helped rival refiners Valero Energy and Phillips 66 report upbeat quarterly results. PBF Energy's gross refining margin, excluding special items, stood at $9 per barrel in the third quarter, compared with $6.79 per barrel a year ago.

The company's crude oil and feedstocks throughput, however, fell to 871,000 barrels of oil per day (bpd) in the reported quarter, from 935,600 bpd a year earlier. The company said operations at its Martinez refinery in California remain limited following a February fire.

Total throughput from the 157,000 barrel-per-day refinery during the period of limited operations is expected in the range of 85,000 to 105,000 barrels per day. PBF Energy expects to restore full operations by year-end, depending on regulatory approvals and the availability of critical equipment.

Insurance proceeds so far total about $500 million, and the company expects rebuilding costs to be largely covered. It expects total throughput from its refineries to be between 860,000 bpd and 910,000 bpd for the current quarter.

PBF lost 52 cents per share on an adjusted basis in the third quarter, compared with estimates of a 67 cents loss per share, according to data compiled by LSEG.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)