PBF Energy Inc. reported 2014 earnings that provided evidence of the refiner weathering the storm from low crude oil prices.
Fourth quarter earnings excluding special items, for 2014 was $435.3 million, compared to $143.9 million a year earlier.
The company posted a net loss, due to the non-cash write-down of inventory that came with sharply lower crude oil prices.
The performance eased concerns that the refiner might have become caught up in nearly 50 percent drop in crude oil prices. In trading last week, PBF shares were fetching more than $30 a share, a couple of dollars away from the 52-week high.
The sale of storage and other facilities at the Delaware City and Toledo refineries to a PBF limited partnership last year gave the refiner $600 million in cash.
Tom Nimbley, PBF Energy’s CEO, said, “2014 was a transformational year for PBF. Our strong operating results, particularly those from our East Coast system, reflect the benefits of the optionality that we have built into our refining system. This optionality provides us with the flexibility to pursue the most economic barrels for our system, either waterborne or rail-delivered crude oil, and maximize the profitability of our assets.”
Nimbley continued, “With the launch of PBF Logistics LP, PBF established a valuable partner for growth and generated a significant amount of cash to strengthen the company. Looking ahead, we feel that the company is now well positioned, operationally and financially, for the next phase of our growth strategy. We remain focused on operational excellence, environmental stewardship and safety, and to expanding our businesses through opportunities that the market may present in 2015.”
PBF Chairman Tom O’Malley separately reported during the earnings conference call that East Coast refineries are in better shape, due to changes in the market, including the ability to take crude oill shipments via rail or ship.
Production for the fourth quarter averaged approximately 415,300 barrels per day, which was within total guidance as a result of higher production on the East Coast and lower than planned output in the Mid-Continent. Production in the Mid-Continent averaged approximately 75,600 barrels per day and throughput on the East Coast averaged approximately 339,700 barrels per day.
The company announced that it will pay a quarterly dividend of $0.30 per share of Class A common stock on March 10, to holders of record as of February 23. The company pays a dividend of more than 4 percent.
PBF faces a legal battle with environmental activists over its rail unloading facility in Delaware City, a key factor in its earnings performance. The groups claim the site and the ability to ship crude oil via barge to the Paulsboro, NJ refinery, violates the state’s Coastal Zone Act.
O’Malley reported the company is buying less rail-transported crude oil as prices are sometimes better for oil coming in via water.
