UPDATE 2-PBF Energy posts bumper quarterly profit, partners with ENI on biorefinery

Reuters
Updated ·2 min read

(Adds shares, details on the results, outlook, CEO comment)

Feb 16 (Reuters) - PBF Energy Inc posted an upbeat fourth-quarter profit on Thursday and said it sealed a joint venture with Eni Sustainable Mobility, a unit of Italy's energy group Eni, for a renewable diesel project in the United States.

Shares of PBF rose nearly 8% to $45.01 in pre-market trade.

As part of the 50-50 venture, Eni will contribute capital totaling $835 million, excluding working capital, plus up to an additional $50 million that is subject to the achievement of project milestones, PBF said in a statement.

The joint venture, St. Bernard Renewables LLC, will own the renewable diesel project currently under construction and co-located with PBF's Chalmette refinery in Louisiana.

U.S. refiners last year benefited from increased exports after their European counterparts cut runs due to a surge in European natural gas prices to save costs.

PBF's gross refining margin, excluding special items, rose to $1.71 billion in the reported quarter, from $998.7 million a year ago.

"The resurgence of demand for our products and our reliable operations allowed PBF to end 2022 in the strongest financial position in our 10-year history as a public company," Chief Executive Officer Tom Nimbley said.

Its total crude oil and feedstocks throughput climbed 8% in the October-December quarter to 86.4 million barrels.

The company expects its full-year 2023 throughput between 935,000 barrels per day (bpd) and 995,000 bpd, and in the current quarter between 845,000 bpd and 905,000 bpd.

The Parsippany, New Jersey-based refiner said its net income attributable to stockholders rose to $637.8 million, or $4.86 per share, in the three-month period ended Dec. 31, from $165.3 million, or $1.36 per share, in the year-ago quarter.

On an adjusted basis, the refiner posted a profit $4.41 per share, missing average analysts' estimate of $4.98 per share, according to Refinitiv data. (Reporting by Arunima Kumar in Bengaluru; Editing by Sherry Jacob-Phillips)