© Reuters. FILE PHOTO: A nighttime view of the Torrance Refinery, an oil refinery operated by PBF Energy, in Torrance, California, U.S., March 10, 2022. Picture taken March 10, 2022. REUTERS/Bing Guan/File Photo
(Reuters) -U.S. refiner PBF Energy (NYSE:) Inc beat estimates for first-quarter profit on Friday, aided by higher margins amid tight supplies and strong demand for fuel, as well as boosted its share buyback authorization to $1 billion.
Refining margins have risen after pandemic-related closures and subsequent declines in fuel inventories raised demand for oil products.
Western sanctions on Russia also crimped global supplies at a time when fuel demand was recovering from pandemic-lows, boosting the margins of refiners.
PBF’s gross refining margin, excluding special items, rose to $1.41 billion in the reported quarter, compared with $850.7 million a year ago.
“While we cannot anticipate where or when we expect to see market dislocation,” said outgoing Chief Executive Officer Tom Nimbley.
Margins jumped at rivals Marathon Petroleum Corp (NYSE:) and Valero Corp, too, helping them post upbeat first-quarter profits.
PBF conducted extensive turnaround work across 75% of its regions, Nimbley said.
Refiners across the United States increased maintenance activities during the first quarter after running at breakneck rates last year to meet rising demand.
“In 2023, PBF would continue to conduct extensive maintenance and multiple turnarounds across our refining system,” the company said.
PBF said its production rose 1.8% to 859,200 barrels per day (bpd) in the first quarter.
The company forecasts its second-quarter throughput in the range of 900,000 bpd to 960,000 bpd.
Excluding items, the New Jersey-based company earned $2.76 per share for the three months ended March 31, compared with analysts’ average estimate of $2.58, according to Refinitiv data.