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PBF Energy (PBF) Misses on Q4 Earnings, Ups 2023 Refining Capex
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PBF Energy Inc. (PBF - Free Report) reported fourth-quarter 2022 earnings of $4.41 per share, missing the Zacks Consensus Estimate of earnings of $4.95. However, the bottom line improved from the year-ago profit of $1.28 per share.
Total quarterly revenues increased to $10,846 million from $8,244 million in the prior-year quarter. The top line also beat the Zacks Consensus Estimate of $9,702 million.
Lower-than-expected quarterly earnings were primarily driven by lower contributions from the Logistics segment, and higher costs and expenses. The negatives were partially offset by higher contributions from the Refining segment.
PBF Energy’s operating income from the Refining segment was $914 million, significantly improving from $323.7 million a year ago.
It generated a profit of $43.3 million from the Logistics segment, reflecting a decline from the prior-year quarter’s $52.6 million.
Throughput Analysis
Volumes:
In the quarter under review, crude oil and feedstock throughput volumes were 939 thousand barrels per day (bpd), higher than the year-ago figure of 869 thousand bpd.
The East Coast, Mid-Continent, Gulf Coast and West Coast regions accounted for 34.7%, 14.5%, 17.9% and 32.9%, respectively, of the total oil and feedstock throughput volume.
Margins:
Company-wide gross refining margin per barrel of throughput, excluding special items, was $19.78, significantly higher than the year-earlier figure of $12.49.
The gross refining margin per barrel of throughput was $25.02 for the East Coast, up from $7.91 in the year-ago quarter. The realized refining margin was $14.22 per barrel for the Gulf Coast, up from $11.82. The metric was $17.38 and $19.53 per barrel in the West Coast and Mid-Continent compared with respective margins of $18.14 and $8.30 a year ago.
Costs & Expenses
Total costs and expenses of PBF Energy in the reported quarter were $9,890.7 million, significantly higher than $7,952.9 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 $9,877.2 million, higher than the $7,865.7 million reported a year ago.
Capital Expenditure & Balance Sheet
In the fourth quarter, PBF Energy spent $322 million in capital on refining operations and $3.3 million on logistics businesses.
At the fourth quarter-end, it had cash and cash equivalents of $2,203.6 million. As of Dec 31, PBF Energy had a total debt of $1,959.1 million, resulting in a total debt-to-capitalization of 28%.
Outlook
For 2023, PBF Energy’s total refining system throughput is expected to be 935,000-995,000 barrels per day. For the first quarter, the company anticipates throughput volumes of 845,000-905,000 barrels per day.
PBF expects average refining operating expenses of $8-$8.50 per barrel. General and administrative expenses are anticipated to be $200-$250 million. Also, total depreciation and amortization expenses are expected to be $500-$550 million.
The company expects refining capital expenditure of $700-$750 million for the year, with capital costs for the St. Bernard Renewables facility and related project infrastructure of $600-$650 million. This suggests an increase from the $995 million reported in 2022.
Zacks Rank & Other Stocks to Consider
PBF Energy currently carries a Zacks Rank #2 (Buy).
Valero Energy Corporation’s (VLO - Free Report) fourth-quarter 2022 adjusted earnings of $8.45 per share beat the Zacks Consensus Estimate of $7.45 per share. The strong quarterly results were driven by increased refinery throughput volumes and a higher refining margin.
Valero can benefit from the Gulf Coast export volumes as fuel demand recovery gets support from Asia economies. The Gulf Coast contributed 59.4% to the total throughput volume in the fourth quarter of 2022.
RPC Inc.’s (RES - Free Report) adjusted earnings of 41 cents per share in the fourth quarter beat the Zacks Consensus Estimate of 30 cents. The strong quarterly results were backed by higher activity levels in all the service lines and rising equipment utilization.
As of Dec 31, RPC had cash and cash equivalents of $126.4 million, up sequentially from $73.2 million. Nonetheless, the company managed to maintain a debt-free balance sheet.
Sunoco LP (SUN - Free Report) reported fourth-quarter 2022 earnings of 42 cents per unit, missing the Zacks Consensus Estimate of 77 cents. Weak quarterly earnings resulted from the higher total cost of sales and operating expenses.
Sunoco has witnessed upward estimate revisions for 2023 earnings in the past 30 days. For 2023, Sunoco expects adjusted EBITDA of $850-$900 million.
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PBF Energy (PBF) Misses on Q4 Earnings, Ups 2023 Refining Capex
PBF Energy Inc. (PBF - Free Report) reported fourth-quarter 2022 earnings of $4.41 per share, missing the Zacks Consensus Estimate of earnings of $4.95. However, the bottom line improved from the year-ago profit of $1.28 per share.
Total quarterly revenues increased to $10,846 million from $8,244 million in the prior-year quarter. The top line also beat the Zacks Consensus Estimate of $9,702 million.
Lower-than-expected quarterly earnings were primarily driven by lower contributions from the Logistics segment, and higher costs and expenses. The negatives were partially offset by higher 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
Segmental Performance
PBF Energy’s operating income from the Refining segment was $914 million, significantly improving from $323.7 million a year ago.
It generated a profit of $43.3 million from the Logistics segment, reflecting a decline from the prior-year quarter’s $52.6 million.
Throughput Analysis
Volumes:
In the quarter under review, crude oil and feedstock throughput volumes were 939 thousand barrels per day (bpd), higher than the year-ago figure of 869 thousand bpd.
The East Coast, Mid-Continent, Gulf Coast and West Coast regions accounted for 34.7%, 14.5%, 17.9% and 32.9%, respectively, of the total oil and feedstock throughput volume.
Margins:
Company-wide gross refining margin per barrel of throughput, excluding special items, was $19.78, significantly higher than the year-earlier figure of $12.49.
The gross refining margin per barrel of throughput was $25.02 for the East Coast, up from $7.91 in the year-ago quarter. The realized refining margin was $14.22 per barrel for the Gulf Coast, up from $11.82. The metric was $17.38 and $19.53 per barrel in the West Coast and Mid-Continent compared with respective margins of $18.14 and $8.30 a year ago.
Costs & Expenses
Total costs and expenses of PBF Energy in the reported quarter were $9,890.7 million, significantly higher than $7,952.9 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 $9,877.2 million, higher than the $7,865.7 million reported a year ago.
Capital Expenditure & Balance Sheet
In the fourth quarter, PBF Energy spent $322 million in capital on refining operations and $3.3 million on logistics businesses.
At the fourth quarter-end, it had cash and cash equivalents of $2,203.6 million. As of Dec 31, PBF Energy had a total debt of $1,959.1 million, resulting in a total debt-to-capitalization of 28%.
Outlook
For 2023, PBF Energy’s total refining system throughput is expected to be 935,000-995,000 barrels per day. For the first quarter, the company anticipates throughput volumes of 845,000-905,000 barrels per day.
PBF expects average refining operating expenses of $8-$8.50 per barrel. General and administrative expenses are anticipated to be $200-$250 million. Also, total depreciation and amortization expenses are expected to be $500-$550 million.
The company expects refining capital expenditure of $700-$750 million for the year, with capital costs for the St. Bernard Renewables facility and related project infrastructure of $600-$650 million. This suggests an increase from the $995 million reported in 2022.
Zacks Rank & Other Stocks to Consider
PBF Energy currently carries a Zacks Rank #2 (Buy).
Investors interested in the energy sector might look at the following companies that presently flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Valero Energy Corporation’s (VLO - Free Report) fourth-quarter 2022 adjusted earnings of $8.45 per share beat the Zacks Consensus Estimate of $7.45 per share. The strong quarterly results were driven by increased refinery throughput volumes and a higher refining margin.
Valero can benefit from the Gulf Coast export volumes as fuel demand recovery gets support from Asia economies. The Gulf Coast contributed 59.4% to the total throughput volume in the fourth quarter of 2022.
RPC Inc.’s (RES - Free Report) adjusted earnings of 41 cents per share in the fourth quarter beat the Zacks Consensus Estimate of 30 cents. The strong quarterly results were backed by higher activity levels in all the service lines and rising equipment utilization.
As of Dec 31, RPC had cash and cash equivalents of $126.4 million, up sequentially from $73.2 million. Nonetheless, the company managed to maintain a debt-free balance sheet.
Sunoco LP (SUN - Free Report) reported fourth-quarter 2022 earnings of 42 cents per unit, missing the Zacks Consensus Estimate of 77 cents. Weak quarterly earnings resulted from the higher total cost of sales and operating expenses.
Sunoco has witnessed upward estimate revisions for 2023 earnings in the past 30 days. For 2023, Sunoco expects adjusted EBITDA of $850-$900 million.