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PBF Energy posts weak Q3 outcomes, set to cut $200 million of costs in 2025

U.S. refiner PBF Energy strategies to save around $200 million in operating costs and expenditures by the end of 2025 through efforts including energy decrease and improving the performance of refinery turn-arounds, executives stated on Thursday.

Our group has actually been establishing a business improvement effort throughout our refining footprint, PBF CEO Matt Lucey informed analysts on a conference call. We have actually identified opportunities throughout our system, both in operating costs and in capital expenditures.

The cost savings would be attained through energy-reduction efforts along with improving the performance of turnaround work and capital projects, executives stated.

Previously on Thursday, the Parsippany, New Jersey-based refiner posted a bigger-than-expected loss for the 3rd quarter, due in part to weak refining margins across the industry.

PBF shares were down 2.3% at $28.16 at midday on Thursday.

On an adjusted basis, PBF lost $1.50 per share in the quarter, compared to estimates of a loss of $1.41 per share, according to data put together by LSEG.

Profitability of refiners around the globe has actually dropped due to soft consumer and commercial demand, particularly in China.

Larger competitors Phillips 66 and Valero Energy posted drops in quarterly revenues, dented by weak margins, but still managed to beat analysts' quotes.

PBF stated its gross refining margin per barrel of throughput excluding unique items stood at $6.79 in the quarter, a decline of 69.4% from last year.

PBF's financial outcomes for the quarter reflect the wider macro headwinds caused by weaker-than-expected international need and higher-than-anticipated refinery usage, Lucey said in a statement.

For the fourth quarter, PBF expects its refineries to run in between low- to mid-80%- variety capacity.

The refiner is performing its last significant turn-around at the Chalmette refinery in Louisiana and anticipates the work to be finished in early November.

(source: Reuters)