PBF Energy Inc (PBF.N) reported a smaller-than-expected quarterly loss on Thursday, as the U.S. refiner benefited from lower costs and higher fuel demand, boosted by a rapid vaccine rollout that has revitalized day-to-day travel.
Consumption of fuel has ticked up in recent months as more people traveled following the easing of government-imposed restrictions and as vaccination programs picked up steam.
"We ran higher in March than we did in January, and that reflects more favorable market conditions as the progressive vaccine rollout lead to improving demand," Chief Executive Officer Tom Nimbley said.
PBF's total costs and expenses in the first quarter dropped to $4.87 billion from $6.64 billion a year ago, as the company undertook a broad restructuring to cope with the pandemic.
Nimbley, however, pointed to headwinds related to Renewable Fuel Standard program (RFS) under which refiners must blend biofuels such as corn-based ethanol into their fuel mix or buy tradable credits.
"If the (RFS) program is not fixed, it will likely result in a reshaping of the U.S. refining industry and a greater reliance on foreign energy," he added.
PBF said it expects to run its refineries at a higher rate in the current quarter, another sign of improving demand.
Total crude oil and feedstock throughput in the reported quarter came in at 67.1 million barrels, up from 62.3 million barrels in the fourth quarter.
On a sequential basis, gross refining margin, excluding special items, rose to $244.6 million from $60.8 million.
Larger rival Valero Energy said last week it expected fuel consumption to benefit from pent-up demand for travel in the summer. read more
The Parsippany, New Jersey-based refiner said adjusted loss narrowed to $315.5 million, or $2.61 per share, in the first quarter ended March 31, from $547.4 million, or $4.53, in the previous quarter.
Analysts were expecting a loss of $2.63 per share, according to Refinitiv IBES.
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April 29, 2021 at 06:36PM
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PBF Energy posts smaller loss as vaccine rollout drives fuel demand - Reuters
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