Delaware City refinery owner PBF Energy reported sharply higher earnings in the third quarter.
The New Jersey company reported third-quarter 2017 net income of $347.2 million, and net income attributable to PBF Energy Inc. of $314.4 million.
This compares to net income of $56.4 million, and net income attributable to PBF Energy Inc. of $42.1 million for the third quarter 2016.
Tom Nimbley, PBF Energy’s CEO, said, “Our results reflect the strong operations of our entire system. For the first time since acquiring the Chalmette (Louisiana) and Torrance (California) refineries, we had all five of our assets operating for almost an entire quarter. As a result, we were able to capture the benefits of strong third quarter markets.”
Nimbley continued, “We are still coping with the ongoing pressures of narrow crude differentials and headwinds from the flawed Renewable Fuels Standard. However, the overall macroeconomic picture looks positive for refiners heading into year-end and beyond to 2018. We have strong global demand and economic growth, and inventory levels that have come down to more rational historic averages. With this positive backdrop, we are looking forward to demonstrating the earnings capability of our five- refinery system through continued safe, reliable and environmentally responsible operations.”
The company announced it will pay a quarterly dividend of $0.30 per share of Class A common stock on November 29, to holders of record as of November 13.
PBF has grown from a lone refinery in Delaware City to five sites around the nation. Earlier this year, the company acquired a Southern California refinery in the coastal city of Torrance from ExxonMobil. The transaction included a pipeline that supplies Los Angeles International Airport and another that transports crude oil from wells in California.
The company continues to look for refineries to acquire, but remains cautious, since a poorly operating refinery can drain a company. Before PBF acquired the Delaware City Refinery, the site was reportedly losing $1 million a day under former owner Valero.
PBF, which was staffed with people who worked for a former owner of the Delaware refinery, overhauled the site and simplified operations.
In the case of the Louisiana and California refineries, former owner ExxonMobil had invested in the sites.
As a condition in buying the California refinery, ExxonMobil had to start-up the site, which had earlier been rocked by a large explosion that led to a lengthy closure.
