Phillips 66 Q2 Profit Down 10% On Lower Refining Earnings

(RTTNews) - Oil refiner and chemical maker Phillips 66 (PSX) on Wednesday reported a 10 percent decrease in profit for the second quarter from last year, reflecting lower earnings at its refining as well as marketing and specialties segments. In addition, the prior-year quarter's results included a gain on asset sales.

Greg Garland, chairman and CEO of Phillips 66 said, "Chemicals earnings were driven by strong olefin and polyolefin chain margins. Refining benefited from higher utilization; however, our market capture rate declined."

The Houston, Texas-based company's net income for the second quarter was $863 million or $1.51 per share, down from $958 million or $1.53 per share in the year-ago period. The prior-year quarter's results included gain on asset dispositions of $23 million.

Excluding items, adjusted earnings for the latest quarter were $863 million or $1.51 per share, compared to $921 million or $1.47 per share in the year-ago quarter.

On average, 14 analysts polled by Thomson Reuters expected the company to report earnings of $1.70 per share for the quarter. Analysts' estimates typically exclude one-time items.

Revenues and other income for the quarter rose 6 percent to $46.34 billion from $43.90 billion in the year-ago period. Analysts had a consensus revenue estimate of $4.47 billion.

Total costs and expenses for the quarter were $44.98 billion, up 6 percent from $42.45 billion in the previous-year quarter.

Refining segment profit for the period declined 14 percent from the year-ago period to $390 million, while Marketing and Specialties earnings decreased 53 percent to $137 million.

Meanwhile, midstream earnings for the quarter grew 20 percent from the prior-year period to $108 million, while chemical unit's earnings surged 79 percent to $324 million. Chemicals segment reflects Phillips 66's investment in Chevron Phillips Chemical Company.

PSX is currently trading at $82.06, down $0.41 or 0.50 percent on a volume of 628,371 shares.