What happened
Shares of PBF Energy (PBF 0.49%), an energy company operating in the refining space, rose sharply at trading open on Feb. 16, gaining more than 10% in morning trading. The big news was the company's fourth-quarter 2022 earnings release, which hit the newswires prior to the opening bell.
So what
In a manner of speaking, PBF Energy's fourth-quarter 2022 results were a disappointment. While it was able to beat analyst consensus on the top line, it fell short on the bottom line.
Normally investors see that as a negative, but this time around, a collection of other positive updates appear to have overshadowed the bad news. For example, while earnings fell short of Wall Street expectations, the adjusted earnings per share of $4.41 came in dramatically higher than the $1.28 earned in the final stanza of 2021, thanks to strong demand for refined products. It's hard to complain too much about that result.
Meanwhile, strong financial performance in 2022 allowed the company to pay down $2.3 billion of debt throughout the year. And the balance sheet ended the year with a huge $2.2 billion in cash. According to management, the company has zero debt from a net debt perspective (net debt subtracts cash balances from debt balances). That puts the company in a great position, financially speaking, to continue investing in growth.
On that front, PBF Energy also announced today that it has inked a 50/50 partnership with a division of global integrated energy giant ENI that will help it pay for a biorefinery it is working on. All in, the future is looking increasingly bright for PBF Energy.
Now what
Adding a little more good news to the mix, PBF Energy is expecting demand for its products and services to remain strong in 2023. And it has already paid down some additional debt, further strengthening its financial position. So it seems like investors should probably expect continued good news out of PBF Energy this year.
