PBF Energy Q1 profits at record high, upbeat US gasoline and jet fuel

Quantum Commodity Intelligence – US independent refiner PBF Energy joined its peers in reporting record first-quarter profits Friday, as it looked ahead to a strong rest of 2023 driven mainly by gasoline and jet fuel demand.

The company reported first quarter net income of $385.9 million versus a small loss the same time last year, driven by higher margins in a tight market still beneftting from a volatile trading environment.  

"Looking ahead, the markets have been chaotic and, as we saw last year, chaos provides for opportunity," CEO Tom Nimbley said.

"While we cannot anticipate where or when, we expect to see market dislocation moving forward."              

On gasoline, the company said its wholesale business on the Atlantic coast was up 10% year-to-date and current run rates in the region currently 15% above the first quarter, so was "shaping up to be a strong season this summer, across the country."

"A key theme for 2023 is recovering demand for jet fuel and gasoline, supported by a strong driving season," the company told investors Friday. 

It mirrors a view held by its peers, US refiners Phillips66 and Marathon Energy both pointing to strong US gasoline demand this year and tight inventories as a reason to be optimistic on this summer's driving season.

PBF Energy's gross operating margin averaged $7.53/b from $2.63/b a year earlier, while refinery throughputs edged 2% higher over the period to 851,000 bpd.

That came despite a heavy maintenance schedule affecting four out of the company's six refineries, following a period where runs were maxed out across the industry to take advantage of outsized margins.

It included unplanned downtime at the the firm's 185,000 bpd Chalmette and 180,000 bpd Toledo refineries as a result of winter storm Elliot, while planned maintenance was carried out at its 157,000 bpd Martinez refinery.  

Work on a coker and cracker at its 180,000 bpd Delaware City refinery was "wrapping up soon," the company said.  

And minor work was expected on a hydrocracker at its Torrance refinery in California this quarter, before a major turnaround at the 166,000 bpd plant in the fourth quarter.

Throughputs are expected to reach 900,000 – 960,000 bpd by Q2, the company said.