Houston based oil refiner Phillips 66 on Friday reported weaker than expected third quarter earnings. PSX reported adjusted EPS of $4.63, up 19.6% year-over-year increase but short of the consensus estimate of $4.76. Revenue of $40.23 billion exceeded the consensus of $38.96 billion, however. Midstream income was higher, but the Chemicals segment was lower due to lower margins. Global olefins and polyolefins utilization was at 99% for the quarter. The board approved an additional $5 billion in share repurchase authorization, in addition to its previous authorization, which had ~$3.1 billion remaining as of Sept. 30. Oil peers Chevron and ExxonMobil also reported today.
Phillips 66 plans to sell non-core assets, expecting to generate over $3 billion in proceeds. In August, Phillips 66 sold its 25% stake in South Texas Gateway Terminal for $275 million, adding to the total proceeds of $370 million from asset sales through 3Q23.
Phillips 66 Q3 23 Earnings:
Highlights
- Adjusted EPS of $4.63,19.6% year-over-year increase but short of consensus $4.76
- Revenue $40.23 billion exceeded consensus of $38.96 billion.
- Midstream segment adjusted pre-tax income stood at $712 million, vs. $604 million in 2Q23, with restructuring costs of $22 million of integration-related restructuring costs.
- Chemicals segment adjusted pre-tax income was $104 million vs. $192 million in Q2. The decrease was due to lower margins.
- Global olefins and polyolefins utilization was at 99% for the quarter.
- Refining segment adjusted pre-tax income stood at $1.71 billion (vs. $1.13 billion in Q2), including a $30 million legal accrual.
- Marketing and Specialties segment adjusted pre-tax income declined to $633 million from $644 million in Q2.
- Phillips 66’s operating cash flow stood at $2.7 billion in the quarter.
- As of Sept. 30, it had $3.5 billion of cash and cash equivalents and $6.3 billion of committed capacity available under credit facilities.
- Phillips approved an additional $5 billion in share repurchase authorization, in addition to its previous authorization, which had ~$3.1 billion remaining as of Sept. 30.
PSX Stock Market Reaction
- $110.93 ▲ +0.83 (+0.75%) today
- $110.93 ▲ +6.73 (+6.46%) past year
- $110.93 ▲ +11.92 (+12.04%) past 5 years
- 52wk High 125.19
- 52wk Low 89.74
Asset Sales and Business Transformation
- Phillips 66 plans to sell non-core assets, expecting to generate over $3 billion in proceeds.
- In August, Phillips 66 sold its 25% stake in South Texas Gateway Terminal for $275 million, adding to the total proceeds of $370 million from asset sales through 3Q23.
- Phillips 66’s business transformation aims for $1 billion in run-rate cost and capital reductions by the end of 2023, with a $1.4 billion target for 2024.
- The company plans to sell non-core assets, expecting to generate over $3 billion in proceeds.
- In August, Phillips 66 sold its 25% stake in South Texas Gateway Terminal for $275 million, adding to the total proceeds of $370 million from asset sales through 3Q23.
About Phillips 66
Phillips 66 (NYSE: PSX) manufactures, transports and markets products that drive the global economy. The diversified energy company’s portfolio includes Midstream, Chemicals, Refining, and Marketing and Specialties businesses. Headquartered in Houston, Phillips 66 has employees around the globe who are committed to safely and reliably providing energy and improving lives while pursuing a lower-carbon future.
Source: Phillips 66
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