Shares of U.S. oil refiner PBF Energy (PBF) rebounded Thursday despite the company reporting a larger than expected net quarterly loss and concerns about fuel demand going forward.
The company's adjusted fourth-quarter loss widened to $547.4 million, or $4.53 per share in the fourth quarter after reporting a $346.6 million, or $2.87 per share, loss in the previous quarter. Analysts were expecting a loss of $3.47 per share.
"PBF's fourth quarter, and full-year, results reflect the continuing headwinds brought on by the global pandemic and attendant demand destruction for our products," CEO Tom Nimbley said.
"Although there are some signs of improvement, we expect demand to remain depressed until vaccine distribution is improved so that everyone can return to their normal routines."
Revenue fell 42% year over year to $3.66 billion, also below Wall Street estimates of $3.76 billion.
PBF Energy shares were down 4.60% in premarket trading early Thursday before the opening bell. PBF rebounded after the opening bell and is now up 10.27% on the day to $10.52 per share.
Consumption for liquid fuel is estimated to have fallen by 9 million barrels per day in 2020, according to the U.S. Energy Information Administration.
In 2020, PBF reported an adjusted loss of $1.44 billion after reporting income from operations of $365.7 million in 2019.
The company said it took several steps to protect its balance sheet in response to the pandemic, including issuing $250 million of senior notes in December 2020.
Jim Cramer is watching the oil market closely, telling TheStreet this week that "listen it's not what you think it is' the real story here is that Biden is going to stop letting people drill in the Gulf of Mexico, but I don't think that's going to happen. I want to take it off of the table.