Delaware City refinery owner PBF Energy faced headwinds in the second quarter and posted a loss for the period.
However, the CEO of the New Jersey-based company pointed to successful maintenance turnarounds of the Delaware City and California refineries and good performance by the other three sites as reasons for optimism.
PBF is facing decreasing margins, due to fewer shipments of more profitable heavy crude oil as well as a convoluted system for calculating ethanol fuel additives in gasoline
The loss compared to income from operations of $234.8 million for the second quarter of 2016. Excluding special items, second quarter 2017 income from operations was $39.9 million as compared to income from operations of $77.0 million for the second quarter of 2016.
Special items in the second quarter 2017 results include a net, non-cash, after-tax loss of $91.6 million, an inventory adjustment which decreased operating income, and an after-tax charge of $15.4 million as a result of costs incurred from the retirement of PBF Holding Company LLC’s 8.25% senior secured notes which were redeemed during the quarter.
The company reported a second quarter 2017 net loss of $104.2 million, and a net loss attributable to PBF Energy Inc. of $109.7 million.
This compares to net income of $120.6 million, and net income attributable to PBF Energy Inc. of $103.5 million for the second quarter 2016.
PBF Energy‘s financial results reflect the consolidation of PBF Logistics LP, a master limited partnership of which PBF indirectly owns the general partner and approximately 44.1 percent of the limited partner interests as of quarter-end.
Tom Nimbley, PBF Energy‘s CEO, said, “Our main focus during the second quarter was to operate our assets safely and reliably and to complete the extensive turnarounds at our Torrance and Delaware City refineries. I am pleased to report that both turnarounds are complete and the refineries are operating well. When combined with the crude unit turnaround at Chalmette during the first quarter, we have successfully executed our major maintenance goals for 2017. Our second quarter results include the impact of this turnaround work and reflect the ongoing pressures of narrow crude differentials and headwinds from the flawed Renewable Fuels Standard.”
Nimbley continued, “Going into the second half of the year, we have five operating refineries, no significant turnaround activity and a refining environment supported by strong domestic and international demand. We are looking forward to the second half of 2017 and demonstrating the capabilities of our refining system.”
The company announced that it will pay a quarterly dividend of $0.30 per share of Class A common stock on August 31 to holders of record as of August 15.