PBF Energy reports significant loss in third quarter

Source: Investing Posted 31/10/2024, 13:49

BARISPAN, NJ – PBF Energy Inc. (NYSE:PBF) today reported an operating loss of $386.3 million in the third quarter of 2024, a sharp contrast compared to the third quarter of 2023 when the company generated operating income of $1,077.1 million. Excluding special items, the operating loss for the third quarter of 2024 was $231.5 million.

compared to income of $1,145.6 million for the same period last year.

The company also reported a net loss of $289.1 million for the third quarter of 2024.

with a net loss attributable to PBF Energy Inc. at $285.9 million, or $2.49 per share. This represents a decline compared to the third quarter of 2023.

which saw net income of $794.1 million and net income attributable to PBF Energy Inc. was worth $786.4 million, or $6.11 per share.

The results for the third quarter of 2024 included special non-cash items resulting in a net after-tax charge of $114.5 million.

or $0.99 per share, mainly due to inventory adjustments according to the cost-or-market value principle, whichever is lower..

Despite these losses, Matt Lucy, President and CEO of PBF Energy, commented on the company’s operational resilience and broader market challenges that impacted financial results. Lucy expressed confidence in the strength of the company’s balance sheet and ability to support operations during the current refining environment.

Reflecting the company’s strong balance sheet, PBF Energy announced a 10% increase in quarterly dividends, to $0.275 per share.

which will be paid on November 27, 2024 to shareholders registered on November 13, 2024. PBF Energy remains committed to its strategic goals.

with approximately $977 million in cash and approximately $1.3 billion in total debt at the end of the quarter.

The company continues to focus on the safety and reliability of operations.

expecting refining capital expenditure for fiscal 2024 to be in the range of $850 million. The company’s refineries are expected to process between 840,000 and 900,000 bpd in the fourth quarter of 2024.

with the last major maintenance at the Chalmette refinery expected to be completed in November.

PBF’s production of renewable diesel averaged around 13,000 bpd in the third quarter.

with an increase expected to 16,000-17,000 bpd in the fourth quarter. PBF Energy has undergone several reviews and adjustments by analysts. B of Securities resumed its coverage of the company.

with a “sub-par” rating and a new price target of $25.00, while Citi revised its price target to $37.00.

BMO Capital Markets downgraded PBF Energy refers to “market performance” from “superior performance,” referring to its position as a higher-cost refiner that may face tighter margins and profits. The company’s adjusted price target is $35.00.

JPMorgan Chase & Co. downgraded PBF Energy from “higher weight” to “Neutral”, with the price target lowered to $40.00. The company suggested that investors may prefer refiners with a larger market capitalization in the current market environment.

Similarly, Piper Sandler downgraded PBF Energy stock rating to “substandard” due to concerns about the company’s future financial performance new price of $25.00. Despite these challenges, PBF Energy has made significant progress in reducing its debt and strengthening its balance sheet. The company also plans to double its production from the Trans Mountain Expansion pipeline by the end of the year and remains optimistic about the medium- to long-term outlook for the regenerative diesel business.

These latest developments underscore the strategic focus of <b121 PBF Energy > to address regional supply deficits and increase production amid a challenging market environment. PBF Energy’s recent financial performance, as reported in the third quarter of 2024 results.

reflects significant challenges in the refining industry. To provide additional context, let’s examine some key metrics and insights from Investing.

According to investing data, PBF Energy has a market capitalization of $3.4 billion, with a price-to-earnings (P/E) ratio of 4.5. This low price-to-earnings ratio, coupled with a price-to-book ratio of 0.54.

indicates that a stock may be undervalued relative to its assets and the potential of its profits.