- The recovery that PBF Energy saw during the third quarter of 2021 continued into the fourth quarter.
- Whilst their operating cash flow slowed down relatively speaking, it was simply due to temporary working capital movements.
- If removed and annualized, their underlying results for the fourth quarter of 2021 would actually even surpass the high point from their recent history since at least 2018.
- Whilst 2022 sees a positive outlook, their higher capital expenditure and deleveraging target are likely to keep shareholder returns off the table with possibly five years of deleveraging ahead.
- They may be able to deleverage quicker, depending upon their highly volatile cash flow performance but regardless, I now feel that a hold rating is appropriate after their share price rally.
For further details see:
PBF Energy: Out Of The Fire, Still Years Of Deleveraging Ahead