Delaware refinery owner PBF Energy saw earnings soar while shrinking its debt load down to zero in 2022.
New Jersey-based PBF is one of the largest independent refiners in North America, operating, through its subsidiaries, refineries and related facilities in California Louisiana, New Jersey and Ohio, as well as Delaware.
The company got its start during the economic downturn more than a decade ago by purchasing the Delaware City Refinery, with the help of private equity and state assistance. The site had been slated for demolition by former owner Valero, which piled up big losses during a tough period in the refining business.
PBF went on to smaller refineries around the nation that typically have an ability to process various types of crude oil and were owned by major oil companies like Shell and ExxonMobil.
PBF reported the following in its earnings report.
- Fourth quarter income from operations of $955.6 million (excluding special items, fourth quarter income from operations of $873 million)
- Year-ending consolidated cash balance of approximately $2.2 billion
- Reduced consolidated debt in 2022 by more than $2.3 billion
- Repurchased over five million shares for approximately $189 million to date
- Completed purchase of remaining public stake in PBF Logistics LP
- Announced partnership with Eni Sustainable Mobility for St. Bernard Renewables Project near New Orleans. The refinery will process waste oil from renewable sources into diesel fuel.
Tom Nimbley, PBF Energy’s CEO, said, “2022 was a transformative year for PBF. The resurgence of demand for our products and our reliable operations allowed PBF to end 2022 in the strongest financial position in our ten-year history as a public company. During 2022, PBF eliminated over $2.3 billion in debt, effectively finishing the year with zero net debt. Our operations provided the financial resources to continually invest in our base business, expand into the renewable fuels space and increase shareholders returns.”
Nimbley continued, “Looking ahead, we have a lot of work to complete in 2023. We ran our assets hard in response to demand last year. Consequently, we are focused on investing in and maintaining our assets to ensure our operations remain safe, reliable and available to supply the market. We expect that the market in 2023 will continue to support strong financial results for PBF and provide the opportunity for increased shareholder returns.”
Income from operations was $4,153.2 million for the year ended December 31, 2022 as compared to income from operations of $597.2 million for the year ended December 31, 2021. Adjusted fully-converted net income for the year ended December 31, 2022, excluding special items, was $2,963.5 million, compared to an adjusted fully-converted net loss, excluding special items, of $302.3 million, for the previous year.
The company announced it will pay a quarterly dividend of $0.20 per share of Class A Common stock on March 16, 2023, to shareholders of record at the close of business on March 1, 2023.
PBF disclosed that the Delaware City refinery coker and hydrocracker will undego turnaround maintenance in spring 2023.
PBF’s total refining system production for full-year 2023 is expected to be approximately 935,000 to 995,000 barrels per day. The Delaware City refinery accounts for about 15% of that figure.
Earnings of oil companies have drawn criticism, due to ups and downs in fuel prices. Refiners and integrated oil companies note that the business is cyclical with big earnings coming after losses.