PBF Energy reported a surprise fourth-quarter profit as refining margins rebounded, helped by tighter global fuel supplies and improved crude price differentials. The company posted an adjusted profit of $0.49 per share for the quarter, reversing analysts' expectations of a $0.10 per share loss, based on data compiled by LSEG.
The improvement was part of a broader recovery in the U.S. refining sector late in the quarter. The benchmark 3-2-1 crack spread recovered from multi-year lows seen earlier in 2024, reflecting both constrained fuel availability and a seasonal lift in demand that supported refining economics.
PBF said its consolidated gross refining margin, excluding special items, climbed to $11.16 per barrel in the fourth quarter, more than double the prior level. Crude oil and feedstocks throughput for the period increased to 888,900 barrels per day, up from 862,000 bpd a year earlier.
The rebound in margins follows a slump in 2024, when refining profits fell from post-pandemic highs as some of the supply disruptions tied to Russia's 2022 invasion of Ukraine eased. Speaking to the recent market shift, CEO Matthew Lucey said, "Oil markets remain dynamic, and many recent headwinds are now converting to tailwinds for refiners, particularly for PBF. Global refining capacity remains structurally constrained, with expected demand growth and rationalization outpacing new capacity additions."
Large rivals including Valero Energy, Marathon Petroleum and Phillips 66 also reported upbeat results in the quarter, citing higher margins as a key driver.
On recovery efforts following a fire last year, PBF reiterated that construction activity at its Martinez, California refinery is expected to conclude by February 16, 2026. The company also said the refinery's catalytic cracking unit is expected to begin operations in the first week of March.
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The fourth-quarter results and the update on Martinez position PBF as a beneficiary of the recent swing in refining dynamics, while the company continues work to restore full capacity at its California complex.