Hot Stock Buzz: PBF Energy Inc. (NYSE: PBF)

On Friday, Shares of PBF Energy Inc. (NYSE: PBF) surged 4.34% to $33.91. The stock grabbed the investor’s attention and traded 1,104,677 shares as compared to its average daily volume of 1.92M shares. The stock’s institutional ownership stands at 96.00%.

PBF Energy Inc. (PBF) recently stated third quarter 2018 income from operations of $286.40M as contrast to income from operations of $587.30M for the third quarter of 2017. Excluding special items, third quarter 2018 income from operations was $232.40M as contrast to income from operations of $322.20M for the third quarter of 2017. PBF Energy’s financial results reflect the consolidation of PBF Logistics LP (PBFX), a master limited partnership of which PBF indirectly owns the general partner and about 44.0% of the limited partner interests as of quarter-end.

The company stated third quarter 2018 net income of $192.50M and net income attributable to PBF Energy Inc. of $179.50M or $1.50 per share. This compares to net income of $347.20M, and net income attributable to PBF Energy Inc. of $314.40M or $2.85 per share for the third quarter 2017.  Special items in the third quarter 2018 results, which increased net income, by a net, after-tax gain of $45.40M, or $0.37 per share, consisted of a lower-of-cost-or-market (“LCM”) inventory adjustment, a gain on land sale at our Torrance refinery, a benefit related to the change in our Tax Receivable Agreement liability, and a charge associated with the early return of certain leased railcars. Adjusted fully-converted net income for the third quarter 2018, excluding special items, was $135.70M, or $1.13 per share on a fully-exchanged, fully-diluted basis, as described below, contrast to an adjusted fully-converted net income of $164.00M or $1.44 per share, for the third quarter 2017.

Chalmette Coker Restart:

The board of PBF Energy has approved the restart of the idled 12.0K barrel per day coker at the Chalmette refinery.  The coker has been idle since 2010 and PBF has accomplished detailed engineering for completion of the restart.  The unit is expected to be in service by the end of 2019 and is expected to cost about $110.0M to place in service.  Once the idled unit is in service, Chalmette’s total coking capacity will increase to 42.0K barrels per day.

Outlook:

For the fourth quarter 2018, we expect East Coast total throughput to average 330.0K to 350.0K barrels per day; Mid-Continent total throughput is expected to average 145.0K to 155.0K barrels per day; Gulf Coast total throughput is expected to average 185.0K to 195.0K barrels per day and West Coast total throughput is expected to average 165.0K to 175.0K barrels per day.

For the full-year 2018, we expect East Coast total throughput to average 320.0K to 340.0K barrels per day; Mid-Continent total throughput is expected to average 145.0K to 155.0K barrels per day; Gulf Coast total throughput is expected to average 185.0K to 195.0K barrels per day and West Coast total throughput is expected to average 170.0K to 180.0K barrels per day.

PBF has a market value of $4.02B while its EPS was booked as $6.03 in the last 12 months. The stock has 118.69M shares outstanding. In the profitability analysis, the company has gross profit margin of 11.50% while net profit margin was 2.60%. Beta value of the company was 1.35; beta is used to measure riskiness of the security. Analyst recommendation for this stock stands at 2.50.

Grover Beam

Grover Beam has over 14 years experience in the financial services industry giving him a vast understanding of how news affects the financial markets. He is an active day trader spending the majority of her time analyzing earnings reports and watching commodities and derivatives. He has a Masters Degree in Economics from Westminster University with previous roles counting Investment Banking.

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