PBF Energy Shares Drop 7% as Martinez Refinery Restart Delayed to May
PBF Energy reported a Q1 adjusted loss of $0.88 per share versus an expected $0.35 loss, with revenue up 12% to $7.9 billion. Restart of the Martinez refinery's FCC unit has been delayed to early May, while insurance recoveries have topped $1.0 billion, and a $0.275 dividend was declared.
1. First-Quarter Earnings Beat Estimates
PBF Energy posted revenue of $7.9 billion in Q1, a 12% increase from last year and above the $7.39 billion consensus. On a GAAP basis, the company reported earnings of $1.65 per share, while adjusted results showed a loss of $0.88 per share compared with analysts’ expected $0.35 loss.
2. Martinez Refinery Delay
The restart of the Martinez refinery’s Fluid Catalytic Cracking unit has been pushed to early May, extending beyond prior timelines. This delay contributed to a more than 7% drop in PBF’s share price as markets anticipate prolonged reduced output.
3. Insurance Recoveries and Special Items
Special items boosted GAAP earnings with a $313 million inventory adjustment reversal and a $106.5 million insurance payment for the Martinez fire. Total unallocated insurance reimbursements have now reached $1.0 billion, providing a cushion against operational disruptions.
4. Outlook and Cost Savings
PBF expects Q2 throughput between 850,000 and 910,000 barrels per day. The Refining Business Improvement initiative delivered over $230 million in run-rate savings in 2025 and is projected to exceed $350 million by year-end 2026, while the company declared a $0.275 quarterly dividend.