PARSIPPANY, N.J. - PBF Energy Inc. (NYSE:PBF), a leading independent petroleum refiner and supplier, reported a decline in its first quarter 2024 income from operations, which stood at $145.1 million, a significant drop from $532.4 million in the same period last year. When excluding special items, the income from operations for the first quarter was marginally lower at $143.9 million, compared to $514.4 million in the first quarter of 2023.
The company also announced a net income of $107.5 million for the first quarter of 2024, with net income attributable to PBF Energy Inc. being $106.6 million, or $0.86 per share. These figures contrast with a net income of $385.9 million and a net income attributable to PBF Energy Inc. of $382.1 million, or $2.86 per share, for the same quarter the previous year.
PBF Energy's President and CEO, Matt Lucey, commented on the performance, stating that 2024 began positively despite the maintenance undertaken in their East Coast and Mid-continent regions. He highlighted the company's focus on balance sheet strength and reliable operations.
Lucey also mentioned planned maintenance for the second quarter in California and the company's commitment to shareholder value, as demonstrated by the announcement of a $0.25 per share dividend and the repurchase of approximately $125 million of shares in the first quarter.
In addition to the financial results, PBF Energy declared a quarterly dividend of $0.25 per share of Class A common stock to be paid on May 30, 2024, to shareholders on record as of May 16, 2024.
The company's renewable diesel production arm, St. Bernard Renewables (SBR), averaged 18,000 barrels per day in the first quarter. SBR's application to the California Air Resources Board (CARB) was approved in March, allowing it to benefit from provisional Carbon Intensity scores reflecting lower-CI feedstocks, which is expected to enhance project economics in the California market.
PBF Energy provided an update on its strategic outlook, reiterating its commitment to operational safety and reliability. The company expects full-year 2024 refining capital expenditures to be between $800 to $850 million. The report also included throughput expectations for the second quarter of 2024 across its regional operations.
The information in this article is based on a press release statement from PBF Energy.
InvestingPro Insights
PBF Energy Inc. has shown a notable performance over the past year, with a 58.38% total return. Despite a recent decline in quarterly income, PBF's management has demonstrated confidence in the company's value through aggressive share buybacks, a clear InvestingPro Tip that suggests a bullish stance from those at the helm. Moreover, the company stands out with a high shareholder yield, which is often a sign of a company's commitment to returning value to its investors.
From a valuation perspective, PBF Energy's current Price/Earnings (P/E) ratio is 3.09, indicating that the stock may be undervalued when compared to industry peers. Additionally, the company's Price/Book ratio over the last twelve months as of Q1 2024 is 0.97, reinforcing the potential for an undervalued investment opportunity. Still, it's important to note that the company's gross profit margins have been weak, at 7.72%, which could signal challenges in maintaining profitability.
Investors looking to delve deeper into PBF Energy's financial health and future prospects can find additional InvestingPro Tips, such as the anticipation of profitability this year and the capacity for cash flows to cover interest payments. For those interested in leveraging these insights, InvestingPro offers a total of 13 tips on PBF Energy, which can be explored further with a special offer: use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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