PBF Energy Inc PBF is bearing the brunt of weak fuel demand owing to the coronavirus pandemic. According to Bloomberg reports, the company is running its Martinez refinery, located 30 miles Northeast of San Francisco, CA, at roughly 62% capacity. This reflects a decline from June’s 70%, the source revealed.
Governments across the world have enforced strict social-distancing measures to contain the spread of the virus. Owing to this, people are traveling for emergency purposes only, denting demand for fuels like gasoline and jet fuels. The significant decline in fuel demand is hurting the bottom lines of refiners like PBF Energy since they produce refined petroleum products from raw crude oil.
Notably, the pandemic has been hurting refining business for months, with no immediate respite in sight. In fact, in May, the company announced that it was running six refineries at minimum capacities – averaged at roughly 70%. Thus, the recent report of further reduction of capacity utilization at its Martinez refinery reflects further demand disruption of fuel. Another such refining company that has taken measures to combat the pandemic-induced low demand is Marathon Petroleum Corporation MPC. The company’s Martinez refinery has been kept idled since April.
Overall, the second quarter has not gone well for PBF Energy. The refiner’s Zacks Consensus Estimate for the June quarter loss has been revised higher from $1.96 per share to $2.03 over the past 30 days. Moreover, for 2020, the consensus estimate for loss has been revised higher to $5.14 per share from $5.02.
PBF Energy Inc. Price
PBF Energy Inc. price | PBF Energy Inc. Quote
Currently, PBF Energy carries a Zacks Rank #3 (Hold). Meanwhile, a couple of better-ranked players in the energy space are Viper Energy Partners LP VNOM and Murphy USA Inc. MUSA. While Viper Energy sports a Zacks Rank #1 (Strong Buy), Murphy USA carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Viper Energy has witnessed upward estimate revisions for its 2020 bottom line in the past 60 days.
Murphy USA is likely to see earnings growth of 93.7% in 2020.
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PBF Energy Inc. (PBF) : Free Stock Analysis Report
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