Refiner operating at minimum rates due to COVID-19 hit
PBF Energy Inc said it was operating its refineries at minimum rates, with throughput about 30% lower than the refiner’s expectations, as coronavirus-driven travel curbs hit fuel demand.
The company also announced sweeping cost-cutting measures, including scrapping its dividend, to tackle the demand shock from the virus pandemic as travel restrictions have led to grounding of flights and fewer vehicles on roads.
The refiner announced pay cuts taken by company executives and employees, with Chief Executive Officer Thomas Nimbley taking a 67% cut, while the board and executive leadership have halved their compensation.
The refiner expects to lower 2020 operating expenses by about $125 million and will reduce capital expenditure for the year by $240 million or 35%, including spending on the newly acquired Martinez refinery.
The company also withdrew its throughput outlook for the first quarter and 2020, and said it was suspending its quarterly dividend of $0.30 per share.
PBF also agreed to sell five hydrogen plants to Air Products and Chemicals Inc for $530 million in cash.
Reporting by Shanti S Nair in Bengaluru; Editing by Devika Syamnath
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