Delaware City refinery owner PBF Energy Inc. reported earnings from operations of $129.7 million compared to income from operations of $92.3 million for the third quarter of 2015.
The earnings came during a challenging period for the refining industry, which is coping with pressure on margins as oil prices remain at low levels.
Shares of PBF finished at 21.47 on Friday, up about 2.5 percent for the day, but well below the 52-week high of more than $41 a share.
Excluding special items, third quarter 2016 income from operations was $25.7 million as compared to income from operations of $300.6 million for the third quarter of 2015.
The company reported third quarter 2016 net income of $56.4 million, and net income attributable to PBF Energy Inc. of $42.1 million. This compares to net income of $55.5 million, and net income attributable to PBF Energy Inc. of $42.8 million for the third quarter 2015.
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 about 44.2 percent of the limited partner interests.
Tom Nimbley, PBF Energy’s CEO, said, “It was a challenging refining environment in the third quarter, with the exception of the Gulf Coast, average benchmark margins were down in every region and we experienced the added headwind of a 15 percent increase in the cost of compliance with the renewable fuels mandate.”
Nimbley continued, “We continue to focus on our strategy to improve profitability and reliability and are committed to reducing operating expenses across our system. We believe that we are near a cyclical low in the refining environment and the ongoing and planned enhancements will strengthen the company’s operating results and increase margin capture when the market improves.”
On July 1, PBF announced that its subsidiary had closed its previously announced acquisition of the 155,000 barrel per day Torrance refinery, and related logistics assets, from ExxonMobil.
The refinery gives PBF a presence in major oil markets that also include the East Coast, Midwest and Gulf of Mexico.
Following the purchase of the Torrance refinery, subsidiaries of PBF Energy sold with a subsidiary of PBF Logistics LP, a 50 percent equity stake in the Torrance Valley Pipeline Company LLC .
Proceeds from the transaction were $175.0 million.
TVPC owns the 189-mile San Joaquin Valley Pipeline system with a capacity of approximately 110,000 barrels per day.
The system is the primary crude gathering and transportation lines that supply PBF Energy’s Torrance refinery. The assets also include 11 pipeline stations with approximately one million barrels of combined tankage and truck unloading capability at two of the stations.
For the fourth quarter 2016, PBF expects East Coast total production to average 310,000 to 330,000 barrels per day; Mid-Continent total throughput is expected to average 130,000 to 140,000 barrels per day; Gulf Coast to average 155,000 to 165,000 barrels per day and West Coast production expected to average 135,000 to 145,000 barrels per day.
