PBF Energy provides update on repair of refinery in California

PBF Energy (PBF) announced that, based on assessments to date, it intends to proceed with the repairs needed to restart its 157,000 barrel per day refinery in Martinez, California. The refinery was damaged by a fire on February 1 and remains temporarily shut down. The restart of the refinery will be in two stages. Certain units, including the crude unit, are expected to restart early in the second quarter of 2025. Restart of the remaining units, which primarily includes the units that were scheduled for turnaround in the first quarter, should occur by the fourth quarter of 2025. Total throughput during stage one is expected to be in the range of 85,000 to 105,000 barrels per day, and the refinery is expected to be able to produce limited quantities of gasoline, jet fuel, and intermediates. The timing of both stages is dependent on factors impacting the company’s ability to effect necessary repairs, including those outside of the company’s control such as regulatory permitting and approvals and the availability of certain critical equipment and components. The company expects the cost of repairs to the fire damaged units and restoring the refinery to full operational status will largely be covered by insurance, subject to the company’s deductible and retentions totaling $30M. Further, the company expects that its business interruption insurance should significantly offset the financial loss resulting from the downtime. The protection from the business interruption insurance includes recovery of ongoing costs and potential lost margin opportunity incurred from April 3 and continuing until operations are fully restored.