PBF Energy intensifies refinery improvements, aiming for cost savings exceeding 350 million dollars.

Pooja Menon

Reuters, October 29 - PBF Energy (PBF.N) said on Thursday it has identified a series of small-to-medium-scale projects aimed at increasing refinery utilization, boosting output, and lowering costs, while avoiding large-scale capacity expansions.

During its post-earnings conference call, company executives stated that work on the refinery business improvement plan is fully underway and that, by the end of this year, it is expected to achieve over $350 million in annual cost savings.

According to data compiled by LSEG, the New Jersey-based refiner also reported adjusted earnings per share of $12.78 for the three months ended September 30, exceeding analysts’ average estimate of $10.74 per share. Its stock rose 3.6% in early trading.

PBF stated that refinancing and debt reduction measures completed this year are expected to lower interest expenses by at least $130 million in 2027.

Executives added that the return to normalcy in the refined product market could be slower than in the crude oil market, and that years of industry-wide capacity optimization should continue to support refinery margins.

The company also said that freight costs and increased heavy crude supplies have widened the spread between light and heavy crude oil, benefiting refiners able to access discounted heavy crude.

Operationally, the company noted that 2027 is expected to be a heavier maintenance year compared with previous years, partly due to maintenance postponed from 2026, while 2028’s maintenance schedule is expected to be relatively light.

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