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Control empresarial increases stake in PBF Energy with $17.9 million

Published 11/02/2024, 05:30 AM
PBF
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Control Empresarial de Capitales S.A. de C.V. has increased its stake in PBF Energy Inc. (NYSE:PBF) by purchasing additional shares valued at approximately $17.9 million. The transactions occurred over two days, with the company acquiring 300,000 shares on October 30 at an average price of $29.0051 per share and 322,000 shares on October 31 at an average price of $28.4889 per share. These purchases bring Control Empresarial's total ownership in PBF Energy to 25,962,498 shares.

In other recent news, PBF Energy has reported its Q3 2024 financial results, indicating some challenges. The company recorded an adjusted net loss of $1.50 per share and an adjusted EBITDA loss of $60.1 million, including a $29 million loss from its equity investment in St. Bernard Renewables. Despite these figures, PBF Energy returned $104 million to shareholders, signaling confidence in its long-term prospects.

The company's refineries operated effectively without significant downtime, and it produced an average of 13,000 barrels per day of renewable diesel in Q3, with plans to increase output in Q4. PBF Energy also announced a 10% increase in its quarterly dividend to $0.275 per share.

The company has set a target of $200 million in run rate cash savings by the end of 2025, focusing on energy reductions and operational efficiencies. Capital expenditures for Q3 totaled approximately $153 million, with full-year guidance near $850 million. PBF Energy is also exploring asset monetization opportunities, including excess real estate in Delaware.

Despite facing weaker refining margins and adverse crude differentials, PBF Energy's medium to long-term outlook remains balanced, with expectations of relief from refinery closures and easing geopolitical tensions by 2025.

InvestingPro Insights

Control Empresarial de Capitales S.A. de C.V.'s recent investment in PBF Energy Inc. (NYSE:PBF) comes at a time when the stock is trading near its 52-week low, potentially indicating a strategic move to capitalize on the company's current valuation. According to InvestingPro data, PBF Energy's stock has experienced a significant decline, with a 44.69% drop in the past six months and a 39.46% decrease over the last year.

Despite these challenges, PBF Energy shows some positive financial indicators. The company boasts a high shareholder yield and has raised its dividend for three consecutive years, with a current dividend yield of 3.51%. This commitment to shareholder returns aligns with an InvestingPro Tip highlighting that management has been aggressively buying back shares, which could signal confidence in the company's future prospects.

However, investors should note that PBF Energy faces some headwinds. The company's revenue for the last twelve months as of Q3 2024 stood at $34.9 billion, with a revenue growth decline of 12.81%. Additionally, PBF Energy is currently not profitable over the last twelve months, with a negative adjusted operating income of $135.6 million.

For those interested in a deeper analysis, InvestingPro offers 14 additional tips on PBF Energy, providing a more comprehensive view of the company's financial health and market position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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