PARSIPPANY, N.J. - PBF Energy Inc. (NYSE:PBF) reported a loss from operations of $74.6 million for the second quarter of 2024, a significant shift from the income of $1,389.2 million in the same quarter of the previous year. Excluding special items, the loss from operations was $72.5 million, compared to an income of $403.7 million in the second quarter of 2023.
The company also reported a net loss of $66.0 million for the second quarter of 2024, which contrasts with the net income of $1,030.4 million in the prior year. Net loss attributable to PBF Energy Inc. was $65.2 million, or $(0.56) per share. This is in stark contrast to the net income attributable to PBF Energy Inc. of $1,020.4 million, or $7.88 per share, reported for the second quarter of 2023.
Despite the reported losses, PBF Energy announced a quarterly dividend of $0.25 per share, payable on August 29, 2024, to shareholders on record as of August 15, 2024. Furthermore, the company repurchased approximately 2.0 million shares for approximately $100 million during the second quarter.
President and CEO Matt Lucey commented on the results, noting that market conditions deviated from typical seasonal patterns, impacting margins and earnings. He mentioned that extensive maintenance was conducted in the East, Mid-continent, and West Coast regions during the first two months of the quarter, which, combined with the market conditions, affected the company's performance.
Looking forward, Lucey stated that the majority of planned maintenance for the year has been completed, and the company's assets are running well, which should benefit operations in the third quarter. He emphasized the company's focus on safe and reliable operations and its commitment to allocating capital towards opportunities that promote long-term shareholder value.
PBF Energy remains dedicated to the safety and reliability of its operations and expects full-year 2024 refining capital expenditures to be around $850 million. The company's Gulf Coast facility is scheduled for planned maintenance early in the fourth quarter.
The information provided is based on a press release statement from PBF Energy Inc.
In other recent news, PBF Energy has been the subject of multiple revisions by analyst firms. Mizuho Securities reduced its price target for PBF Energy to $51 from $54, anticipating a significant miss in the company's second-quarter performance.
The firm forecasts considerable misses in earnings before interest, taxes, depreciation, and amortization (EBITDA), free cash flow (FCF), and earnings per share (EPS). These projections are rooted in lower-than-anticipated margin capture, attributed to operational delays and a mismatch in the timing of product supply.
Piper Sandler reduced the price target for PBF Energy to $47, citing persistent challenges in the refining sector. The firm revised its second quarter and full-year 2024 EBITDA forecasts downward by 25% and 12%, respectively. TD Cowen further reduced the stock's price target to $45, attributing this to an unexpected decline in refining margins in April.
Despite these adjustments, PBF Energy posted solid Q1 results for 2024, reporting an adjusted net income of $0.85 per share and adjusted EBITDA of $301.5 million. The company remains optimistic about the future, citing strong product demand, a net cash position, and a commitment to shareholder returns.
These are the recent developments for PBF Energy, which faces potential benefits from regional trends, particularly in the West Coast margins, and challenges from the evolving dynamics of the refining industry.
InvestingPro Insights
In the wake of PBF Energy Inc.'s (NYSE:PBF) reported operational loss and net loss for the second quarter of 2024, it's important to consider various financial metrics and analyst insights that could provide a broader context for investors.
According to recent data from InvestingPro, PBF Energy is currently trading at a low revenue valuation multiple, with a Price/Earnings (P/E) ratio of 2.72, which is adjusted to 4.42 for the last twelve months as of Q1 2024. This suggests that the stock may be undervalued relative to its earnings, potentially offering an attractive entry point for investors.
The company's gross profit margin for the last twelve months as of Q1 2024 stands at 6.9%, reflecting some challenges in profitability. However, InvestingPro Tips indicate that PBF Energy's management has been actively repurchasing shares, which could signal confidence in the company's future prospects and a commitment to enhancing shareholder value. Moreover, the firm's cash flows have been robust enough to cover interest payments, and its liquid assets surpass short-term obligations, indicating a sound liquidity position.
Despite the recent downward revisions in earnings by analysts for the upcoming period, PBF Energy remains profitable over the last twelve months, and analysts predict the company will remain profitable this year. For investors seeking further insights, InvestingPro offers a total of 10 InvestingPro Tips on PBF Energy, which can be accessed for in-depth analysis and additional data points.
As PBF Energy navigates through the current market conditions and focuses on its operational performance, these InvestingPro Insights can help investors make informed decisions. The company's next earnings date is set for August 1, 2024, which will be a critical moment for assessing its financial health and future direction.
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