PBF Energy Q2 Loss Narrower Than Expected, Revenues Decline Y/Y

Core Insights - PBF Energy Inc. reported a second-quarter 2025 adjusted loss of $1.03 per share, which was narrower than the Zacks Consensus Estimate of a loss of $1.19, but wider than the loss of 56 cents per share from the previous year [1][8] - Total quarterly revenues decreased to $7.48 billion from $8.74 billion in the prior-year quarter, yet exceeded the Zacks Consensus Estimate of $6.79 billion [1][8] - The better-than-expected results were attributed to reduced costs and expenses, although this was partially offset by lower throughput volumes [2] Segmental Performance - The Refining segment reported an operating loss of $400.4 million, compared to an operating income of $107.7 million a year ago, falling short of the estimated operating income of $205.8 million [3] - The Logistics segment generated a profit of $107.7 million, up from $96.1 million in the prior-year quarter, surpassing the estimate of $53.6 million [3] Throughput Analysis - Crude oil and feedstock throughput volumes totaled 839.1 thousand barrels per day (bpd), down from 921.3 thousand bpd a year ago, but above the estimate of 836.4 thousand bpd [4] - The East Coast, Mid-Continent, Gulf Coast, and West Coast regions accounted for 35.7%, 19.3%, 20.7%, and 24.3% of total throughput volume, respectively [4] Margins - The company-wide gross refining margin per barrel of throughput was $8.38, higher than the previous year's $8.12 and exceeding the estimate of $7.74 [5][8] - The gross refining margin per barrel for the East Coast was $7.37, significantly up from $2.52 a year ago, while the Gulf Coast margin decreased to $7.35 from $8.66 [6] Costs & Expenses - Total costs and expenses for the quarter were $7.43 billion, down from $8.8 billion in the prior-year period, and slightly above the estimate of $7.37 billion [7] - Cost of sales, including operating expenses and depreciation, amounted to $7.53 billion, lower than $8.73 billion a year ago [7] Capital Expenditure & Balance Sheet - PBF Energy spent $144.5 million on capital for refining operations and $8.2 million on logistics [9] - At the end of the second quarter, the company had cash and cash equivalents of $591 million and total debt of $2.4 billion, resulting in a total debt-to-capitalization ratio of 30.2% [9] Outlook - For the third quarter of 2025, PBF Energy anticipates throughput volumes of 320,000 to 340,000 bpd on the East Coast, 150,000 to 160,000 bpd in the Mid-Continent, 175,000 to 185,000 bpd in the Gulf Coast, and 220,000 to 230,000 bpd on the West Coast [10]