© 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.
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 moving forward,” said outgoing Chief Executive Officer Tom Nimbley.
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.