PBF Energy boosts refinery improvement efforts, targets over $350 million in savings

By Pooja Menon

Oct 29 (Reuters) - PBF Energy PBF.N said on Thursday it has identified a series of small- to mid-scale projects aimed at improving refinery utilization, boosting yields and reducing costs, while steering clear of large capacity expansions.

On a post-earnings conference call, executives said work was already underway under its refinery business improvement program, which is expected to deliver more than $350 million in annual cost savings by the end of this year.

The New Jersey-based refiner also reported an adjusted profit of $12.78 per share for the three months ended September 30, beating analysts' average estimate of $10.74 apiece, according to data compiled by LSEG, sending its shares up 3.6% in morning trading.

PBF said refinancing and debt-reduction efforts completed this year are expected to lower interest expense by at least $130 million in 2027.

Executives added that refined-product markets are likely to normalize more slowly than crude markets and that years of industry capacity rationalization should continue to support refining margins.

The company also said freight costs and growing heavy crude supplies have widened light-heavy crude differentials, benefiting refiners with access to discounted heavier grades.

On the operational side, the company said 2027 is expected to be a heavier-than-normal turnaround year, partly reflecting maintenance work deferred from 2026, while 2028 should see a lighter turnaround schedule.