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PBF Energy (PBF) Slips 1.5% as Q2 Earnings Miss Estimates

·3-min read

PBF Energy Inc. PBF has lost 1.5% since it reported wider-than-expected loss for second-quarter 2021 on Jul 29. Lower contributions from the refining and logistics segments hurt the company’s bottom line. Although demand for fuel started improving, it’s yet to reach the pre-pandemic mark, the firm believes.

The leading North American refiner reported second-quarter 2021 loss of $1.26 per share, wider than the Zacks Consensus Estimate of a loss of $1.03. The bottom line, however, was narrower than the year-ago loss of $3.19.

Total revenues increased to $6,898 million from $2,516 million in the prior-year quarter and beat the Zacks Consensus Estimate of $6,002 million.

PBF Energy Inc. Price, Consensus and EPS Surprise

PBF Energy Inc. Price, Consensus and EPS Surprise
PBF Energy Inc. Price, Consensus and EPS Surprise

PBF Energy Inc. price-consensus-eps-surprise-chart | PBF Energy Inc. Quote

Segmental Performance

The company’s operating income at the Refining segment was $146.8 million, down from $614.6 million a year ago.

It generated a profit of $47.8 million from the Logistics segment, which reflects a decline from the prior-year quarter’s $50.1 million.

Throughput Analysis

Volumes:

For the quarter under review, crude oil and feedstocks throughput volumes were 874.2 thousand bpd, higher than the year-ago figure of 675.1 thousand bpd.

East Coast, Mid-Continent, Gulf Coast and West Coast regions accounted for 28.6%, 17.2%, 19.9%, and 34.2%, respectively, of total oil and feedstock throughput volume.

Margins:

Company-wide gross refining margin per barrel of throughput — excluding special items — was recorded at $5.62, significantly higher than the year-earlier $1.54.

Gross refining margin per barrel of throughput was $4.19 in the East Coast, up from $3.51 in the year-ago quarter. Realized refining margin was $4.82 per barrel in the Gulf Coast, up from $3.99 in the prior-year period. The metric was $6.47 and $7.26 per barrel in the West Coast and Mid-Continent, as compared with earnings of 5 cents and a loss of $4.63, respectively, a year ago.

Costs & Expenses

Total costs and expenses for the reported quarter were $6,750.4 million, significantly higher than $1,895 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 $6,696.1 million, higher than the year-ago $2,317.5 million.

Capital Expenditure & Balance Sheet

Through the second quarter, the company spent $75.2 million capital on refining operations and $2.2 million on logistics businesses.

At quarter-end, it had cash and cash equivalents of $1,479.7 million. As of Jun 30, PBF Energy had a total debt of $4,628.1 million, resulting in a total debt to capitalization of 67%.

Outlook

The company continued to expect fuel demand to recover gradually in the second half of this year. The company reaffirmed its capital spending projection for this year at the band of $400-$450 million.

Zacks Rank & Stocks to Consider

The company currently has a Zacks Rank #4 (Sell). Better-ranked players in the energy space include Whiting Petroleum Corporation WLL, Continental Resources, Inc. CLR and PDC Energy, Inc. PDCE. All the stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Whiting Petroleum has witnessed upward earnings estimate revisions for 2021 in the past 30 days.

Continental is expected to witness earnings growth of 256% in 2021.

PDC Energy is likely to see earnings growth of 111.8% in 2021.


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PDC Energy, Inc. (PDCE) : Free Stock Analysis Report

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