PBF Energy (PBF) has reported 1.61 percent fall in profit for the quarter ended Sep. 30, 2016. The company has earned $42.11 million, or $0.43 a share in the quarter, compared with $42.80 million, or $0.49 a share for the same period last year. Revenue during the quarter surged 40.26 percent to $4,513.20 million from $3,217.64 million in the previous year period. Gross margin for the quarter expanded 213 basis points over the previous year period to 14.42 percent. Total expenses were 97.13 percent of quarterly revenues, down from 97.13 percent for the same period last year. This has led to an improvement of 1 basis points in operating margin to 2.87 percent.
Operating income for the quarter was $129.71 million, compared with $92.27 million in the previous year period.
Tom Nimbley, PBF Energys chairman and chief executive officer, said, "It was a challenging refining environment in the third quarter, with the exception of the Gulf Coast, average benchmark margins were down in every region and we experienced the added headwind of a 15 percent increase in the cost of compliance with the renewable fuels mandate.” Mr. Nimbley continued, "We continue to focus on our strategy to improve profitability and reliability and are committed to reducing operating expenses across our system. We believe that we are near a cyclical low in the refining environment and the ongoing and planned enhancements will strengthen the company's operating results and increase margin capture when the market improves."
Operating cash flow improves significantlyPBF Energy has generated cash of $388.21 million from operating activities during the nine month period, up 61.49 percent or $147.81 million, when compared with the last year period. The company has spent $1,246.95 million cash to meet investing activities during the nine month period as against cash outgo of $166.94 million in the last year period.
Cash flow from financing activities was $539.82 million for the nine month period, up 35,912.21 percent or $538.32 million, when compared with the last year period.
Cash and cash equivalents stood at $625.40 million as on Sep. 30, 2016, up 32.27 percent or $152.57 million from $472.83 million on Sep. 30, 2015.
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