Markets

PBF Energy (PBF) Beats Earnings & Revenue Estimates in Q4

An image of a pen on a stock chart
Credit: Shutterstock photo

PBF Energy Inc.PBF posted fourth-quarter 2018 profit of $1.03 a share, beating the Zacks Consensus Estimate of 77 cents. In the year-earlier quarter, the company reported a loss of 4 cents. Higher refining margins primarily backed the company's strong quarterly earnings. This was partially offset by lower crude oil and feedstocks throughput volumes.

Total revenues fell to $6,293 million from $6,536 million in the prior-year quarter. The top line, however, beat the Zacks Consensus Estimate of $6,123 million.

Segmental Performance

Operating loss at the Refining segment was $397.7 million against a profit of $293 million in the year-ago quarter due to lower crude oil and feedstocks throughput volumes.

The company generated profit of $38.6 million from the Logistics segment, which shows an improvement from the prior-year quarter's $35.6 million.

Throughput Volumes

In the quarter under review, crude oil and feedstocks throughput volumes were 842.7 thousand barrels per day (BPD), down from 870.9 thousand BPD in the year-ago quarter.

The East Coast, Mid-Continent, Gulf Coast and West coast regions accounted for approximately 39.3%, 17.8%, 22.4% and 20.5%, respectively, of the total oil and feedstocks throughput volume.

Throughput Margins

Company-wide gross refining margin per barrel of throughput - excluding special items - was recorded at $10, higher than the year-earlier quarter's $7.06.

Refining margin per barrel of throughput was $8.55 in the East Coast, up from $4.02 in the year-earlier quarter. The metric was $17.76 a barrel in the Mid-Continent, higher than $12.17 a year ago. Refining margin realized was $5.83 per barrel in the Gulf Coast, down from $6.12 in the prior-year quarter. The metric was $10.57 per barrel in the West Coast, marginally up from $10.24 in the prior-year quarter.

Refining operating expense per barrel of throughput was $5.56, higher than $5.01 in the year-ago quarter.

Capital Expenditure & Balance Sheet

Through the fourth quarter, the company spent $175.3 million capital on refining operations and $89.1 million on logistics businesses.

At the end of the quarter, the company had cash and cash equivalents of $597.3 million along with total debt of $1.9 billion, the debt-to-capitalization ratio being 37.3%.

Guidance

PBF Energy projects total daily throughput volumes for first-quarter 2019 from the East Coast in the range of 300,000-320,000 barrels, while the same from the Mid-Continent is expected in the band of 135,000-145,000 barrels. Total daily throughput volumes at the Gulf Coast are expected in the range of 175,000-185,000 barrels, while that at the West Coast is anticipated within 130,000-140,000 barrels.

Through 2019, the company anticipates total daily throughput volumes from the East Coast between 325,000 barrels and 345,000 barrels. The same from the Mid-Continent is projected at 150,000-160,000 barrels, while the Gulf Coast is anticipated to generate 195,000-205,000 barrels.

Zacks Rank and Key Picks

Currently, PBF Energy carries a Zacks Rank #4 (Sell). Meanwhile, better-ranked players in the energy space include Jones Energy Inc. JONE , Golar LNG Partners LP GMLP and Sunoco LP SUN . Jones and Sunoco carry a Zacks Rank #2 (Buy), while Golar LNG sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.

Jones Energy expects 2019 earnings growth of 19% year over year.

Golar LNG delivered average positive earnings surprise of 92.8% in the preceding four quarters.

Sunoco LP has average positive earnings surprise of 18.39% for the trailing four quarters.

Zacks' Top 10 Stocks for 2019

In addition to the stocks discussed above, wouldn't you like to know about our 10 finest buy-and-holds for the year?

From more than 4,000 companies covered by the Zacks Rank, these 10 were picked by a process that consistently beats the market. Even during 2018 while the market dropped -5.2%, our Top 10s were up well into double-digits. And during bullish 2012 - 2017, they soared far above the market's +126.3%, reaching +181.9%.

This year, the portfolio features a player that thrives on volatility, an AI comer, and a dynamic tech company that helps doctors deliver better patient outcomes at lower costs.

See Stocks Today >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Golar LNG Partners LP (GMLP): Free Stock Analysis Report

PBF Energy Inc. (PBF): Free Stock Analysis Report

Sunoco LP (SUN): Free Stock Analysis Report

Jones Energy, Inc. (JONE): Free Stock Analysis Report

To read this article on Zacks.com click here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

GMLP PBF SUN

Other Topics

Earnings Stocks

Latest Markets Videos