Boston, MA 05/02/2014 (wallstreetpr) – PBF Energy Inc (NYSE:PBF) has shown interest in buying refineries in California, a location that according to Valero Energy Corporation (NYSE:VLO) are the weakest of their group.
To Maintain Element Of Growth
PBF Energy Inc (NYSE:PBF)’s chairman, Tom O’Malley, said to the analysts during a conference call that the company is interested in buying the refineries as its executives have the required experience to manage them. The interest in California comes when the U.S. west coast refinery margins have reached the highest seasonal level in the last seven years, due to enhanced plant repairs and fuel exports to Latin America. Also, the state’s refiners are taking in a record oil volume through rail from North American shale, so as to replace the expensive imports from overseas.
California refineries accounted for a record 1.18 million barrels that were brought in by rail in December from places including Wyoming, Canada and North Dakota. The region accounts for the highest refined product export last year, for the first time since 1993, as per the Energy Information Administration. During this week, Valero’s Chief Executive Officer, William Klesse, said that the California refineries’ contribution is not strong but rather weakest of the assets that the group holds. Klesse added that though these refineries are operationally fit but are not fetching results financially. Valero currently runs Benicia refinery producing 132,000-barrel-a-day near San Francisco along with Wilmington complex with 78,000-barrel-a-day capacity near Los Angeles.
Robust Quarter And Dividend Maintained
On Wednesday, PBF Energy Inc (NYSE:PBF) had presented its first quarter earnings that came upbeat, exceeding the analyst expectations by $0.50 at $1.44 and revenue at $4.74 billion. Additionally, the company has also declared a dividend to the tune of $0.30 per share on a quarterly basis, which is payable to the shareholders on May 29, 2014. The dividend is in line with the company’s earlier dividend rates.
