PARSIPPANY, N.J. - PBF Energy Inc. (NYSE:PBF) today reported a third quarter 2024 loss from operations of $386.3 million, a stark contrast to the third quarter of 2023 when the company saw an income from operations of $1,077.1 million. Excluding special items, the loss from operations for the third quarter of 2024 was $231.5 million, compared to an income of $1,145.6 million for the same period the previous year.
The company also reported a net loss of $289.1 million for the third quarter of 2024, with a net loss attributable to PBF Energy Inc. of $285.9 million, or $(2.49) per share. This is a downturn from the third quarter of 2023, which had a net income of $794.1 million and a net income attributable to PBF Energy Inc. of $786.4 million, or $6.11 per share. The third quarter 2024 results included non-cash special items resulting in a net after-tax charge of $114.5 million, or $0.99 per share, mainly due to lower-of-cost-or-market inventory adjustments.
Despite these losses, PBF Energy's President and CEO, Matt Lucey, commented on the company's operational resilience and the broader market challenges that affected the financial outcomes. Lucey expressed confidence in the company's balance sheet and its ability to support operations during the current refining environment.
In a move reflecting the company's balance sheet strength, PBF Energy declared a 10% increase to its quarterly dividend, bringing it to $0.275 per share, payable on November 27, 2024, to shareholders of record as of November 13, 2024.
PBF Energy remains committed to its strategic goals, with approximately $977 million in cash and about $1.3 billion in total debt at the end of the quarter. The company continues to focus on the safety and reliability of operations, expecting full-year 2024 refining capital expenditures to be in the $850 million range.
The company's refineries processed between 840,000 and 900,000 barrels per day in the fourth quarter of 2024, with the last major turnaround at the Chalmette refinery expected to be completed in November. PBF's renewable diesel production averaged approximately 13,000 barrels per day in the third quarter, with an increase to 16,000-17,000 barrels per day expected in the fourth quarter.
This financial update is based on a press release statement from PBF Energy Inc.
In other recent news, PBF Energy has been subject to several analyst reviews and adjustments. BofA Securities resumed coverage on the company, assigning an Underperform rating with a new price target of $25.00, while Citi revised its price target to $37.00. BMO Capital Markets downgraded PBF Energy to Market Perform from Outperform, citing its position as a higher-cost refiner that could potentially face tighter margins and earnings. The firm's revised price target for the company stands at $35.00.
JPMorgan downgraded PBF Energy from Overweight to Neutral, decreasing the price target to $40.00. The firm suggested that investors may prefer larger-cap refiners in the current market environment. Similarly, Piper Sandler downgraded PBF Energy's stock rating to 'Underweight' due to concerns over the company's future financial performance, setting a new price target of $25.00.
Despite these challenges, PBF Energy has made significant strides in reducing its debt and strengthening its balance sheet. The company also plans to double its production from the Trans Mountain Expansion pipeline by the end of the year and remains optimistic about the medium to long-term outlook for its renewable diesel business. These recent developments underscore PBF Energy's strategic focus on addressing regional supply deficits and increasing production amidst a challenging market environment.
InvestingPro Insights
PBF Energy's recent financial performance, as reported in their third quarter 2024 results, reflects significant challenges in the refining industry. To provide additional context, let's examine some key metrics and insights from InvestingPro.
According to InvestingPro data, PBF Energy's market capitalization stands at $3.4 billion, with a price-to-earnings (P/E) ratio of 4.5. This low P/E ratio, coupled with a price-to-book value of 0.54, suggests that the stock may be undervalued relative to its assets and earnings potential. However, it's crucial to consider the cyclical nature of the refining industry when interpreting these metrics.
An InvestingPro Tip indicates that PBF Energy's stock has taken a significant hit over the last six months, which aligns with the reported financial losses in the third quarter of 2024. This is further evidenced by the stock trading near its 52-week low, as another InvestingPro Tip points out. These insights provide context to the company's current market position and the challenges it faces.
Despite the recent setbacks, it's worth noting that PBF Energy remains profitable over the last twelve months, according to an InvestingPro Tip. This suggests that the company has maintained some level of financial stability despite the volatile market conditions. Additionally, the company's decision to increase its quarterly dividend by 10%, as mentioned in the article, is supported by the InvestingPro data showing a dividend yield of 3.47% and a dividend growth of 25% over the last twelve months.
For investors seeking a more comprehensive analysis, InvestingPro offers 14 additional tips for PBF Energy, providing a deeper understanding of the company's financial health and market position.
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