The sale of hydrogen plants and other moves allowed Delaware City refinery owner PBF Energy Inc. to earn a profit.
PBF reported second quarter 2020 income from operations of $620.8 million compared to income from operations of $9.5 million for the second quarter of 2019.
The company reported second quarter 2020 net income of $413 million and net income attributable to PBF Energy Inc. of $389.1 million. This compares to net loss of $21.6 million, and net loss attributable to PBF Energy Inc. of $32.2 million for the second quarter of 2019.
Special items related to the acquisition of a refinery in Martinez in the San Francisco Bay area, an inventory adjustment, and the sale of hydrogen plants contributed to earnings.
Adjusted fully-converted net loss for the second quarter 2020, excluding special items, was $384.8 million, compared to adjusted fully-converted net income of $101.1 million for the second quarter of 2019.
Tom Nimbley, PBF CEO, said, “Our second-quarter financial performance reflects the staggering impact the pandemic had on our business and the underlying impact to demand for our essential products. Through these trying times, our people have responded with vigor to protect each other and our customers and remained focused on the reliability of our ongoing operations. We made significant adjustments to our operations and took several actions to reduce our overall cash burn rate. In the current environment, liquidity and protecting the balance sheet are our primary objectives. With our strong cash balance and increased availability on our existing credit facilities, we are confident that we have the financial flexibility to navigate the current market.”
Nimbley continued, “We appear to have passed the low point of demand, particularly for gasoline and diesel, and have seen demand rebound broadly to approximately 80 percent of pre-COVID levels with the exception of jet fuel which will likely take much longer to recover.”
Employee and operational safety continue to be an ongoing priority in our pandemic response. We have implemented a number of safety protocols, social distancing requirements, issued personal protective equipment to all employees and enhanced facility cleanings all focused on protecting front line employees who have remained on the job throughout the current crisis and returning employees as they come back to the office.
n late March and through the second quarter of 2020, PBF reduced the amount of crude oil processed at its refineries. The goal remains to achieve an operating expense reduction of approximately $250 million in 2020.
PBF operated refineries at reduced rates in response to market conditions and plans to do so in the third quarter.
On April 17, 2020, PBF closed on the sale of five hydrogen plants to Air Products and Chemicals, Inc. for $530.0 million.