Delaware City refinery owner posts strong earnings

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Delaware City refinery owner PBF Energy Inc. reported higher earnings in the third quarter and plans to upgrade its Chalmette  LA refinery.

The company reported third-quarter net income of $192.5 million and net income attributable to PBF Energy of $179.5 million.  This compares to net income of $347.2 million, and net income attributable to PBF Energy of $314.4 million for the third quarter of 2017. 

The financial results reflect the consolidation of PBF Logistics, a master limited partnership of which PBF indirectly owns the general partner and approximately 44 percent of the limited partner interests as of quarter-end.

Tom Nimbley, PBF CEO,  said, “Our strong results for the third quarter continue to reflect the earnings power of our five-refinery system. We are pleased to announce that our board has approved the restart of the idled Chalmette coker.  This unique, high-return project leverages existing infrastructure to execute a brown-field project in a fraction of the time and cost required for a new build. As a result, we increase Chalmette’s long-term flexibility and ability to process additional volumes of discounted heavy, high-sulfur feedstocks.”  Nimbley continued, “Looking forward, crude oil differentials are favorable and our assets are well-positioned to benefit through safe, reliable and environmentally responsible operations.”

 The coker has been idle since 2010 and PBF has completed detailed engineering for completion of the restart.  The unit is expected to be in service by the end of 2019 and is expected to cost approximately $110 million to place in service. 

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PBF has profited through an ability to process various types of crude oil. The Delaware City refinery has such capabilities and has handled heavy crude from overseas and Canada.

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