© Reuters. FILE PHOTO: A nighttime view of the Torrance Refinery, an oil refinery operated by PBF Energy, in Torrance, California, U.S., March 10, 2022. Picture taken March 10, 2022. Picture taken with a drone. REUTERS/Bing Guan
(Reuters) -U.S. refiner PBF Energy (NYSE:PBF) Inc posted a bumper third-quarter profit on Thursday that cruised past Wall Street estimates, boosted by strong demand for fuel and refined products and robust refining margins.
Refining fundamentals have been favorable due to domestic demand recovery and strong exports over Russia’s invasion of Ukraine, while tight crude oil supplies are boosting margins for refiners.
“As we head into the winter months, global product inventories remain low, consumer demand is resilient and refineries are running at high utilization to keep pace,” Chief Executive Tom Nimbley said.
Against the backdrop of bullish outlook, the Parsippany, New Jersey-based refiner also reinstated its regular quarterly dividend of 20 cents per share.
PBF’s gross refining margin, excluding special items, rose to $2.26 billion from $727.5 million a year ago.
U.S. refineries this year have operated at record levels spurred by President Joe Biden’s criticism, who said refiners were putting profits ahead of consumers and urged them to expand capacity.
PBF’s total crude oil and feedstocks throughput climbed in the July-September quarter to 90.6 million barrels from last year’s 78 million barrels.
The company expects full-year throughput between 900,000 barrels per day (bpd) and 960,000 bpd and in the current quarter between 945,000 bpd and 1 million bpd.
Net income attributable to stockholders stood at $1.06 billion, or $8.40 per share, in the three months ended Sept. 30, compared with $59.1 million, or 49 cents per share, last year.
Excluding items, PBF posted a profit of $7.96 per share, beating analysts’ average estimate of $6.49 share, according to Refinitiv IBES.
Larger rival Valero Energy (NYSE:VLO), which also beat profit estimates on robust refining margins earlier this week, added it continues to maximize refining utilization.