Home Corporate News Delaware City refinery owner PBF reports higher operating earnings

Delaware City refinery owner PBF reports higher operating earnings

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PBF crude oil unloading site near Delaware City.

Delaware City refinery owner PBF Energy Inc. reported first quarter 2022 income from operations of $91 million as compared to income from operations of $57.7 million for the first quarter of 2021.

PBF, like other refiners, is seeing tight crude oil supplies as well as production constraints as refineries undergo schedule maintenance. Those factors, as well as the invasion of Ukraine, have led to a sharp rise in oil prices.

PBF Energy’s financial results reflect the consolidation of PBF Logistics LP, a master limited partnership. PBF Energy indirectly owns the general partner and approximately 48% of the limited partner interests as of quarter-end.

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The company reported a first quarter 2022 net loss of $3.3 million and net loss attributable to PBF Energy Inc. of $21.1 million.

On Thursday, PBF shares were trading at around $27.50, a few dollars off of the 52-week high.

First quarter revenues rose from $4.9 billion a year ago to $9.1 billion.

This compares to net loss of $22.2 million, and net loss attributable to PBF Energy Inc. of $41.3 million for the first quarter 2021, due to non-cash expenses, including costs related to the purchase of a refinery in the San Francisco Bay area.

PBF, which got its start with the purchase of the Delaware City site now has refineries on the East and West coasts, the Gulf Coast and northern and southern California. PBF is headquartered in northern New Jersey.

Tom Nimbley, PBF Energy’s CEO, said, “Global supply and demand balances were tight coming into the year. Low product inventories have not recovered due to increasing demand and significant maintenance activity across the global refining system. In the first quarter, PBF completed nearly one third of our annual planned turnaround activities, advanced some planned activities due to a window provided by unplanned downtime and restarted limited secondary processing units on the East Coast. We are focused on putting our entire refining system in a position to run safely and reliably in anticipation of increasing seasonal demand.”

Nimbley added, “Looking ahead, demand is continuing to grow. Global product inventories are tight across the board. With these factors as a backdrop, the outlook for refining in 2022 and beyond, especially domestic refining, is favorable. We expect that with solid operating performance, PBF will be able to generate incremental free cash flow that can be used to strengthen our balance sheet and reward our investors.”

PBF continues to advance a project for a renewable fuels production facility co-located at the Chalmette refinery outside New Orleans.

The plant will produce diesel fuel from renewable sources, with the goal of going into production in the first half of 2023. The company is also looking for strategic and financial partners for the project that include using an idle hydrocracker.

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