PBF Energy Inc. (PBF - Free Report) posted second-quarter 2018 profit of $1.38 a share, beating the Zacks Consensus Estimate of $1.35. The bottom line also compared favorably with the year-ago quarter loss of 6 cents.
Total revenues grew 48.4% to $7,444.1 million from $5,017.2 million in the prior-year quarter. The top line surpassed the Zacks Consensus Estimate of $5,728 million as well.
Higher gross refining margin per barrel of throughput primarily led to the strong second-quarter 2018 results.
Q2 Segmental Performance
Operating income at the Refining segment was $446.5 million against a loss of $101.3 million in the year-ago quarter, courtesy of higher crude oil and feedstocks throughput volumes.
However, the company generated profit of $34.9 million from the Logistics segment, marginally below the prior-year quarter’s $35 million.
In the quarter under review, crude oil and feedstocks throughput volumes were 866.6 thousand barrels per day, up from 769.2 in the year-ago quarter. The figure also surpassed the Zacks Consensus Estimate of 858 thousand barrels a day.
The East Coast accounted for approximately 41.5% of the total oil and feedstocks throughput volume. The Mid-Continent, Gulf Coast and West Coast regions contributed 17.6%, 21.8% and 19.1%, respectively.
Company-wide gross refining margin per barrel of throughput — excluding special items — was recorded at $9.77, beating the Zacks Consensus Estimate of $9.62 and improving from the year-earlier quarter’s $7.17.
Refining margin per barrel of throughput was $7.17 in the East Coast, up from $4.98 in the year-earlier quarter. The metric was $12.63 per barrel in the Mid-Continent, higher than $7.90 a year ago. Throughput margin realized was $7.92 per barrel in the Gulf Coast, up from $7.76 in the prior-year quarter. The metric was $14.88 per barrel in the West Coast, up from $12.18 in the prior-year quarter.
Refining operating expense per barrel of throughput was $5.11, lower than $5.69 in the year-ago quarter.
Capital Expenditure & Balance Sheet
Through the second quarter, the company spent $210.9 million capital on refining operations and $59.6 million for logistics businesses. At the end of the quarter, the company had cash and cash equivalents of $478.3 million along with total debt of $2,218.5 million, with a debt-to-capitalization ratio of 41%.
PBF Energy projects total daily throughput volumes for third-quarter 2018 from the East Coast in the range of 340,000-360,000 barrels.
Through 2018, in the East Coast, the company anticipates total daily throughput volumes between 340,000 barrels and 360,000 barrels.
Zacks Rank & Stocks to Consider
PBF Energy carries a Zacks Rank #3 (Hold). Meanwhile, a few better-ranked players in the energy space are Northern Oil and Gas, Inc. (NOG - Free Report) , McDermott International, Inc. (MDR - Free Report) and Murphy Oil Corp. (MUR - Free Report) . While Murphy Oil carries a Zacks Rank #2 (Buy), McDermott and Northern Oil sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Northern Oil beat the Zacks Consensus Estimate in three of the prior four quarters, the average positive earnings surprise being 160.4%.
McDermott’s earnings beat the Zacks Consensus Estimate in all the last four quarters, the average positive surprise being 101.7%.
Murphy Oil’s bottom line surpassed the consensus mark in each of the last four quarters, the average positive surprise being 102.5%.
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