PBF Energy (PBF) Q2 Earnings Beat on Lower Costs & Expenses
PBF Energy Inc. PBF reported second-quarter 2023 earnings of $2.29 per share, beating the Zacks Consensus Estimate of earnings of $2.22. However, the bottom line declined from the year-ago profit of $10.58 per share.
Total quarterly revenues declined to $9,157.6 million from $14,077.7 million in the prior-year quarter. The top line also missed the Zacks Consensus Estimate of $9,189 million.
Better-than-expected quarterly earnings were primarily driven by lower costs and expenses. The positives were partially offset by a lower gross refining margin per barrel of throughput and declining crude oil and feedstock throughput volumes.
PBF Energy Inc. Price, Consensus and EPS Surprise
PBF Energy Inc. price-consensus-eps-surprise-chart | PBF Energy Inc. Quote
Segmental Performance
PBF Energy’s operating income from the Refining segment was $455.6 million, significantly declining from $1,883.4 million a year ago.
The company generated a profit of $51.9 million from the Logistics segment, reflecting an increase from the prior-year quarter’s $49.3 million.
Throughput Analysis
Volumes:
In the quarter under review, crude oil and feedstock throughput volumes were 935.8 thousand barrels per day (bpd), lower than the year-ago figure of 942.2 thousand bpd. The metric also missed our estimate of 943.7 bpd.
The East Coast, Mid-Continent, Gulf Coast and West Coast regions accounted for 32.5%, 16.9%, 18.1% and 32.5%, respectively, of the total oil and feedstock throughput volume.
Margins:
Company-wide gross refining margin per barrel of throughput, excluding special items, was $13.62, significantly lower than the year-earlier figure of $30.41. The metric is also significantly below our projection of $31.34.
The gross refining margin per barrel of throughput was $8.09 for the East Coast, down from $30.55 in the year-ago quarter. The realized refining margin was $12.54 per barrel for the Gulf Coast, down from $24.48. The metric was $19.41 and $14.30 per barrel in the West Coast and Mid-Continent compared with respective margins of $34.49 and $30.24 a year ago.
Costs & Expenses
Total costs and expenses of PBF Energy in the reported quarter were $7,768.4 million, lower than $12,371.1 million in the year-ago period. The metric is also below our projection of $8,920 million.
Cost of sales, which includes operating expenses, cost of products and others, and depreciation and amortization expenses, amounted to $8,647.2 million, lower than the $12,138.2 million reported a year ago. The metric is also below our projection of $8,859.
Capital Expenditure & Balance Sheet
In the second quarter, PBF Energy spent $362.1 million in the capital on refining operations and $2.4 million on logistics businesses, above our estimates of $317.8 million and $2 million, respectively.
At the second-quarter end, it had cash and cash equivalents of $1,516.9 million. As of Jun 30, PBF Energy had a total debt of $1,441.5 million, resulting in a total debt-to-capitalization of 19%.
Outlook
For the third quarter, PBF Energy anticipates throughput volumes of 925,000-985,000 barrels per day.
PBF expects refining capital expenditure of $750 million for 2023, with capital costs of $700 million for the St. Bernard Renewables facility and related project infrastructure. This suggests an increase from the $995 million reported in 2022.
Zacks Rank & Stocks to Consider
PBF Energy currently carries a Zacks Rank #3 (Hold).
Investors interested in the energy sector might look at the following companies that presently carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Baker Hughes Company BKR reported second-quarter 2023 adjusted earnings of 39 cents per share, beating the Zacks Consensus Estimate of 32 cents. Strong quarterly results were primarily by higher contributions from the Oilfield Services and Equipment, and Industrial & Energy Technology business units.
For 2023, Baker Hughes expects revenues of $24.8-$26 billion. The company projects revenues of $6.4-$6.6 billion for the third quarter.
Crestwood Equity Partners LP CEQP reported second-quarter 2023 adjusted earnings of $1.16 per unit, surpassing the Zacks Consensus Estimate of 26 cents. Strong quarterly earnings were owing to fantastic contributions from the Storage and Logistics business unit.
For this year, the partnership projects adjusted EBITDA of $780-$860 million.
Oceaneering International OII reported a second-quarter 2023 adjusted profit of 18 cents per share, which missed the Zacks Consensus Estimate of 30 cents. This underperformance was due to lower-than-expected operating income from the Subsea Robotics and Manufactured Products segments.
For 2023, Oceaneering projects consolidated EBITDA of $2275-$310 million and a continued free cash flow generation of $90-$130 million.
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