PBF Energy Posts Third Consecutive Quarterly Loss on Weak Margins
* Loss: $289.3 million ($2.54 per share)
* Year-over-Year Change: Loss increased from $48.4 million ($0.40 per share)
* Reason: Decline in refining margins due to global economic weakness and new refinery startups
Industry Context:
* Global refining margins have declined due to reduced economic activity and increased refinery capacity in Asia and Africa.
* US refinery margins, as measured by the 3-2-1 crack spread, fell 25% year-over-year.
* Other major refiners (Phillips 66, Valero Energy, Marathon Petroleum) also reported lower quarterly earnings due to weak margins.
PBF Energy's Performance:
* Consolidated gross refining margin: Loss of $3.89 per barrel in Q4 vs. gain of $1.04 per barrel in Q4 2022.
* Crude oil and feedstocks throughput: 862,000 barrels per day, down from 878,200 barrels per day year-over-year.
* Planned turnaround at Martinez refinery in California potentially impacted by recent fire.
Analyst Expectations:
* Adjusted EPS loss of $2.82 per share, in line with consensus estimates of $2.81 per share.