Aug 1 (Reuters) - PBF Energy ( PBF ) reported a
bigger-than-expected quarterly loss, driven by heavy turnaround
activity and a weak summer driving season which dented fuel
demand and shrunk refining margins.
PBF's shares slipped 4% to $39.08 on Thursday in premarket
trading.
"Market conditions broke from typical seasonal patterns,
with product cracks higher early in the quarter and declining as
the quarter progressed," PBF Energy's ( PBF ) CEO Matt Lucey said.
The company's gross refining margin dropped more than 40% to
$8.12 per barrel in the second quarter.
Demand for distillate fuels, which include diesel and
heating oil, has been hit sharply this year under pressure from
sluggish manufacturing activity, milder-than-expected winter
weather and booming renewable fuel supply.
The U.S. 3-2-1 spread , a key measure of overall
refining margins in the country fell 19% in the second quarter.
PBF Energy's ( PBF ) crude oil and feedstock throughput also fell
1.5% to 921,300 barrels per day (bpd).
Refining profit was also impacted by heavy turnaround
activity early in the quarter, when margins were the strongest.
"We conducted extensive maintenance in our East,
Mid-continent and West Coast Regions during the first two months
of the quarter," Lucey said.
The company's refinery in Chalmette, Louisiana is expected
to undergo planned maintenance early in the fourth quarter.
PBF Energy ( PBF ) forecast third quarter throughput between 885,000
bpd and 945,000 bpd.
On an adjusted basis, the company lost 54 cents per share in
the second quarter, compared with estimates of a loss of 15
cents per share, according to LSEG data.