PBF Energy 2015 Annual Report Download - page 83

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Our results for the year ended December 31, 2014 were negatively impacted by a non-cash special item
consisting of a pre-tax inventory LCM charge of approximately $690.1 million due to a significant decline in the
price of crude oil and refined products during the second half of 2014 into early 2015. Our throughput rates during
the year ended December 31, 2014 compared to December 31, 2013 were relatively flat. The throughput rates
during 2014 in the Mid-Continent were affected by an approximate 40-day plant-wide planned turnaround at our
Toledo Refinery completed in the fourth quarter of 2014. On January 31, 2013 there was a brief fire within the
fluid catalytic cracking complex at the Toledo refinery that resulted in that unit being temporarily shutdown. The
refinery resumed running at planned rates on February 18, 2013. During the fourth quarter of 2013, our Delaware
City Refinery was impacted by 40-day planned turnaround of the coker unit. Excluding the impact of the LCM
charge of $690.1 million, our results for the year ended December 31, 2014 were positively impacted by higher
throughput volumes, favorable movements in certain crude differentials and lower costs related to compliance with
the RFS partially offset unfavorable movements in certain product margins and lower crack spreads in the Mid-
Continent, higher energy costs and an impairment charge of $28.5 million.
Revenues— Revenues totaled $19.8 billion for the year ended December 31, 2014 compared to $19.2 billion
for the year ended December 31, 2013, an increase of $0.7 billion, or 3.5%. For the year ended December 31, 2014,
the total throughput rates in the East Coast and Mid-Continent refineries averaged approximately 325,300 bpd and
127,800 bpd, respectively. For the year ended December 31, 2013, the total throughput rates at our East Coast and
Mid-Continent refineries averaged approximately 310,300 bpd and 142,500 bpd, respectively. The increase in
throughput rates at our East Coast refineries in 2014 compared to 2013 was primarily due to higher run rates,
favorable economics and planned downtime at our Delaware City refinery in 2013. The decrease in throughput
rates at our Mid-Continent refinery in 2014 compared to 2013 was primarily due to an approximate 40-day plant-
wide planned turnaround completed in the fourth quarter of 2014. For the year ended December 31, 2014, the total
refined product barrels sold at our East Coast and Mid-Continent refineries averaged approximately 350,800 bpd
and 144,100 bpd, respectively. For the year ended December 31, 2013, the total refined product barrels sold at our
East Coast and Mid-Continent refineries averaged approximately 307,600 bpd and 153,700 bpd, respectively. Total
refined product barrels sold were higher than throughput rates, reflecting sales from inventory as well as sales and
purchases of refined products outside the refinery.
Gross Margin— Gross refining margin (as defined below in Non-GAAP Financial Measures) totaled $1,314.1
million, or $7.94 per barrel of throughput ($2,004.2 million or $12.11 per barrel of throughput excluding the impact
of special items) for the year ended December 31, 2014 compared to $1,348.1 million, or $8.16 per barrel of
throughput during the year ended December 31, 2013. Gross margin, including refinery operating expenses and
depreciation, totaled $308.4 million, or $1.86 per barrel of throughput, for the year ended December 31, 2014,
compared to $436.9 million, or $2.64 per barrel of throughput, for the year ended December 31, 2013, a decrease
of $128.5 million. Excluding the impact of special items, gross margin and gross refining margin increased due to
higher throughput rates, favorable movements in certain crude differentials, and lower costs of compliance with
Renewable Fuels Standard. Gross margin and gross refining margin were impacted by a non-cash LCM charge of
approximately $690.1 million resulting from the significant decrease in crude oil and refined product prices during
the second half of 2014 into early 2015.
Average industry refining margins in the U.S. Mid-Continent were generally weaker during the year ended
December 31, 2014, as compared to the same period in 2013. The WTI (Chicago) 4-3-1 industry crack spread was
approximately $15.92 per barrel or 20.8% lower in the year ended December 31, 2014, as compared to the same
period in 2013. While the price of WTI versus Dated Brent and other crude discounts narrowed during the year
ended December 31, 2014, our refinery specific crude slate in the Mid-Continent benefited from an improving
WTI/Syncrude differential, which averaged a discount of $2.25 per barrel for the year ended December 31, 2014
as compared to $0.63 per barrel in the same period in 2013.
The Dated Brent (NYH) 2-1-1 industry crack spread was approximately $12.92 per barrel, or 4.7%, higher
in the year ended December 31, 2014, as compared to the same period in 2013. While the WTI/Dated Brent
differential was $5.01 lower in the year ended December 31, 2014, as compared to the same period in 2013, the
WTI/Bakken differential was $0.35 per barrel more favorable for the same periods. The Dated Brent/Maya