PBF Energy reported a larger-than-expected loss in the third quarter, attributing it to weak fuel demand and shrinking refining margins. This trend is being seen globally, with refiners facing challenges due to soft consumer and industrial demand, particularly in China.
Despite the difficult market conditions, larger competitors like Phillips 66 and Valero Energy also experienced drops in earnings but managed to surpass analysts’ expectations.
According to the company, its gross refining margin per barrel of throughput was $6.79 in the quarter, marking a significant 69.4% decline from the previous year. This decline is part of the industry-wide trend as U.S. refiners are witnessing a normalization of margins and profits after reaching record highs following Russia’s invasion of Ukraine in 2022.
PBF Energy’s CEO, Matt Lucey, acknowledged the challenges posed by weaker global demand and higher refinery utilization rates, impacting the company’s financial results for the quarter.
The company also mentioned that it is currently undertaking its final major turnaround at the Chalmette refinery in Louisiana, which is expected to be completed by November.
In terms of throughput, PBF reported 935,600 barrels of oil per day for the quarter, slightly lower than the previous year’s 939,700 bpd. For the upcoming quarter, the company anticipates total throughput to be in the range of 840,000 bpd to 900,000 bpd.
Additionally, PBF announced a 10% increase in its quarterly dividend to $0.275 per share.
On an adjusted basis, the company recorded a loss of $1.50 per share in the third quarter, slightly higher than the estimated loss of $1.41 per share.