Phillips 66 Reports Record Midstream Net Income

Houston based oil refiner Phillips 66 on Friday reported better than expected third quarter earnings as refining and petrochemical revenues strengthened. $PSX is diversifying from refining in both it’s chemical and pipeline sectors. 

Houston based oil refiner Phillips 66 on Friday reported better than expected third quarter earnings as refining and petrochemical revenues strengthened. $PSX is diversifying from refining in both it’s chemical and pipeline sectors. 

Phillips66 Station

Phillips 66 Inc. (NYSE: $PSX) Earnings Beat Before Open Friday

$3.18 beat $3.10 EPS and $30.59 billion beat forecast in revenue 

Earnings

Phillips 66 (PSX) reported third quarter earnings of $1.53 billion, or $3.18 per share. This compares with $0.88 billion, or $1.60 per share, in last year’s third quarter. Excluding items, Phillips 66 reported adjusted earnings of $1.46 billion or $3.10 per share for the period. Analysts had expected the company to earn $2.45 per share, PSX showed revenues of $30.59 billion for the quarter ended September 2018 ahead of estimates. This compares to year-ago revenues of $26.21 billion.

Phillips 66 NYSE: $PSX

Market Reaction > Pre-market 102.00 +3.51 (3.56%)

Highlights

Greg Garland, chairman and CEO of Phillips 66 said “Over the last six years, we have repurchased or exchanged nearly 30 percent of our initial shares outstanding, contributing to record adjusted earnings per share this quarter. We continued our commitment to shareholder distributions, returning $775 million through dividends and share repurchases in the third quarter and $5.2 billion for the year. We believe strong shareholder distributions remain fundamental to disciplined capital allocation.”

  • Delivered record adjusted earnings per share
  • Achieved Refining market capture of 94 percent
  • Generated record Midstream net income from higher throughputs
  • Realized strong Marketing margins
  • Cash distributions from equity affiliates of $910 million;
  • $2.1 billion year to date Returned $775 million to shareholders through dividends and share repurchases
  • Phillips 66 Partners increased Gray Oak Pipeline capacity to 900,000 barrels per day

 

Phillips 66 Q2 Earnings Recap

$2.80 beat $2.16 EPS and $29.7 billion beat forecast in revenue 

Earnings

Net earnings totaled $1.33 billion or $2.84 per diluted share compared to $524 million or $1.07 per diluted share in the prior-year period. Adjusted EPS was $1.32 billion or $2.80 per share.  $PSX revenues of $29.7 billion for the second quarter of 2018, up 23% from the same period last year.

Phillips 66 NYSE: $PSX

Market Reaction > Pre-market $119.28 USD +3.19 (+2.75%)

Greg Garland, Chairman and CEO said, “We advanced strategic growth initiatives and continued to reward our shareholders. In Refining, we operated at full capacity and continued to capture the benefits of advantaged feedstocks through our integrated supply network. CPChem achieved full operations at its new US Gulf Coast petrochemicals assets, contributing to solid earnings growth. In Midstream, the expansion of our Sweeny Hub will further grow and optimize our NGL value chain. Most recently, Phillips 66 Partners completed the Gray Oak Pipeline open season to capitalize on growing Permian crude production.”

Highlights

      • Q2 net income $910M in its refining unit vs. $91M in Q1,
      • Q2 net income $202M in its midstream unit vs. $233M in Q1,
      • $262M in the chemicals unit vs. $232M in Q1,
      • $237 in the marketing and specialties unit vs. $184M in Q1.
      • PSX says Q2 realized refining margins jumped 32% to $12.28/bbl from $9.29/bbl in Q1, reflecting improved market crack spreads and wider crude differentials; gasoline and distillate market cracks rose 20% and 4%, respectively.
      • PSX’s worldwide crude utilization rate was 100% in Q2, up from 89% in the prior quarter.

PSX Refining 2Q 18

The company generated $2.4B in cash from operations during the quarter; excluding working capital impacts, operating cash flow totaled $1.7B.

Phillips 66 now labels itself an energy manufacturing and logistics company.The refining sector is recovering some after low fuel prices aligned to weak crude oil prices, shrinking profit margins.

PSX Earnings Q2 18

In other segments the controversial Dakota Access Pipeline, which Phillips 66 owns 25 percent of, came online in the second quarter. of 2017. It’s joint venture, Chevron Phillips Chemical completed a massive, $6 billion chemicals and plastics expansion in Baytown and Sweeny.

Source: Phillips 66, Alpha Street

Live From The Pit

Leave a Reply

Your email address will not be published.