PBF Energy Inc. PBF shares have declined 3.5% despite reporting strong second-quarter 2022 results on Jul 28, before the opening bell. The underperformance can be attributed to U.S.’s ban on Russia imports and export quotas in China, which are straining refiners’ ability to meet demand, in turn, concerning investors.
PBF Energy reported second-quarter earnings of $10.58 per share, comfortably beating the Zacks Consensus Estimate of earnings of $7.36. The bottom line turned around from the year-ago loss of $1.26 per share.
Total quarterly revenues increased to $14,078 million from $6,898 million in the prior-year quarter. The top line also beat the Zacks Consensus Estimate of $10,047 million.
The strong quarterly results can be primarily attributed to increased contributions from the Refining segment.
PBF Energy Inc. Price, Consensus and EPS Surprise
PBF Energy Inc. price-consensus-eps-surprise-chart | PBF Energy Inc. Quote
PBF Energy’s operating income from the Refining segment was $1,883.4 million, significantly improving from $146.8 million a year ago.
It generated a profit of $49.3 million from the Logistics segment, reflecting an improvement from the prior-year quarter’s $47.8 million.
In the quarter under review, crude oil and feedstock throughput volumes were 942.2 thousand barrels per day (bpd), higher than the year-ago figure of 874.2 thousand bpd.
East Coast, Mid-Continent, Gulf Coast and West Coast regions accounted for 31%, 17.2%, 21.2% and 30.7%, respectively, of the total oil and feedstock throughput volume.
Company-wide gross refining margin per barrel of throughput, excluding special items, was $30.41, significantly higher than the year-earlier figure of $5.62.
The gross refining margin per barrel of throughput was $30.55 for the East Coast, up from $4.19 in the year-ago quarter. Realized refining margin was $24.48 per barrel for the Gulf Coast, up from $4.82. The metric was $34.49 and $30.24 per barrel in the West Coast and Mid-Continent compared with respective margins of $6.47 and $7.26 a year ago.
Costs & Expenses
Total costs and expenses of PBF Energy in the reported quarter were $12,371.1 million, significantly higher than $6,750.4 million in the year-ago period. Cost of sales — which includes operating expenses, cost of products and others, and depreciation and amortization expenses — amounted to $12,138.2 million, higher than the $6,696.1 million reported a year ago.
Capital Expenditure & Balance Sheet
In the second quarter, PBF Energy spent $207.4 million in capital on refining operations and $1.7 million on logistics businesses.
At the second-quarter end, it had cash and cash equivalents of $2,174.3 million. As of Jun 30, PBF Energy had a total debt of $3,269.3 million, resulting in a total debt to capitalization of 46.3%.
For 2022, PBF Energy expects total throughput volumes of 895-955 thousand barrels per day (bpd). The company expects 925-985 thousand bpd of total throughput volumes for the third quarter.
PBF Energy stated refining capital expenditure of $500-$550 million. The Zacks Rank #1 (Strong Buy) company expects to incur annual maintenance, environmental, regulatory and safety capital expenditure of $150-$200 million. It expects to incur turnaround-related capital expenditure of $100-$125 million for the second half of the year.
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Earnings Snapshot of Other Downstream Energy Players
Valero Energy Corporation VLO reported second-quarter 2022 adjusted earnings of $11.36 per share, comfortably beating the Zacks Consensus Estimate of $9.7 per share. The strong quarterly results were driven by increased refinery throughput volumes and a higher refining margin.
Valero has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days. The company currently has a Zacks Style Score of B for Value. Valero is expected to see earnings growth of 858.7% in 2022.
Phillips 66 PSX reported second-quarter 2022 adjusted earnings per share of $6.77, comfortably beating the Zacks Consensus Estimate of $5.92. The strong quarterly results gained from robust refining margins worldwide.
Phillips 66 has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days. The company currently has a Zacks Style Score of B for Value and Growth. PSX is expected to see earnings growth of 183.3% in 2022.
Marathon Petroleum Corporation MPC reported second-quarter 2022 adjusted earnings per share of $10.61, beating the Zacks Consensus Estimate of $9.17. The strong quarterly results gained from stronger-than-expected performances of the company’s segments.
Marathon Petroleum has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days. The company currently has a Zacks Style Score of A for Value. MPC is expected to see earnings growth of 760.8% in 2022.
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