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Phillips 66 profit slumps on weaker refining margins

  • Phillips 66 (PSX) -1.8% premarket as Q3 earnings declined 67%, hurt by a loss in its refining segment due to weaker refining margins.
  • The refining segment swung to a $2M loss from a year-earlier profit of $1.5B; during the quarter, 66% of PSX's U.S. crude slate was advantaged vs. 63% a year earlier.
  • However, the chemical segment's earnings increased to $262M from $153M last year due to solid utilization rates and stronger margins.
  • The midstream segment reported a $148M profit from a year-earlier loss of $72M as margins and volumes improved.
  • Says it expects to increase export capability to 500K bbl/day over the next several years.
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Comments (3)
  • jsijimmy
    , contributor
    Comments (385) | Send Message
    We'll see how much stock drops today...this is a short term buying opportunity IMHO.
    30 Oct 2013, 09:15 AM Reply Like
  • Michael Fitzsimmons
    , contributor
    Comments (9084) | Send Message
    Absolutely agree Jimmy - earning over half a billion bucks while posting a $2 million loss in the refining segment - are you kidding me? That is an amazing accomplishment.
    30 Oct 2013, 09:24 AM Reply Like
  • name999
    , contributor
    Comments (165) | Send Message
    The WTI-Brent Spreads has increased to low double digits (10-11) from low single digits (2-3) recently. The margin for refiners would be wider in the Q4. Thus, the refining segment in PSX will definitely swing back to profit without a problem.
    30 Oct 2013, 09:52 AM Reply Like
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