US refiner PBF Energy posts unexpected profit as margins improve

By Katha Kalia and Nicole Jao

NEW YORK, Feb 12 (Reuters) – Refiner PBF Energy reported a surprise profit on Thursday as lower crude oil prices lifted refining margins.

PBF earned 49 cents per share on an adjusted basis in the fourth quarter, compared with analysts’ estimates of a loss of 10 cents per share, according to data compiled by LSEG.

U.S. refiners saw a sharp recovery in the fourth quarter, with refining margins rebounding from multi-year lows set in 2024. This turnaround was driven by tighter global fuel supplies and a seasonal uptick in demand, which bolstered profits.

The recovery follows a 2024 slump, when margins retreated from post-pandemic highs as supply disruptions linked to Russia’s 2022 invasion of Ukraine eased.

“Oil markets remain dynamic, and many recent headwinds are now converting to tailwinds for refiners, particularly for PBF,” said CEO Matthew Lucey. “Global refining capacity remains structurally constrained, with expected demand growth and rationalization outpacing new capacity additions.”

The refiner’s shares were down 1.4% around midday.

PBF Energy’s gross refining margin more than doubled to $11.16 per barrel in the fourth quarter.

The company’s crude oil and feedstocks throughput rose to 888,900 barrels of oil per day in the quarter, from 862,000 bpd a year earlier.

Larger rivals Valero Energy , Marathon Petroleum and Phillips 66 also reported upbeat results, citing higher margins.

PBF said repairs to its California-based Martinez refinery remained on track, and is expected to be completed by Monday, following a large fire last year. The company expects the refinery’s catalytic cracking unit to start in the first week of March.

Martinez’s restart could provide a strong earnings boost in the next quarter, UBS analysts said.

(Reporting by Nicole Jao in New York and Katha Kalia in Bengaluru; Editing by Tasim Zahid, Rod Nickel)