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Phillips 66 -2.1% as profit climbs but margins mostly fall

  • Phillips 66 (PSX) -2.1% in early trading after Q4 earnings rose 17% but adjusted earnings in the refining sector fell 53% as margins fell in all regions except the Gulf coast.
  • Total revenue rose 1.7% to $43.8B, ahead of analyst expectations for $42.1B.
  • Increased total exports of refined petroleum products to 197K bbl/day during Q4, up 32% Y/Y; processed 257K bbl/day of tight oil, up from 111K in the same period the year before.
  • Refining segment revenue totaled $450M, up 24% Y/Y; income from PSX's midstream business rose 70% to $121M; chemicals unit profit rose by $15M to $261M as margins improved in sales of olefins and polyolefins.

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Comments (3)
  • name999
    , contributor
    Comments (173) | Send Message
     
    midstream income rose 70% ! Profits from Chemical also rose. Have you seen that? PSX is well poised in the industry. Why is that? 1) If the margin in refinery is down, that means every player in the sector will suffer, not just PSX. 2) However, not every player has the same strong performance from midstream and chemical as PSX. In fact, some players don't even has chemical segments in their portfolios.
    29 Jan 2014, 11:15 AM Reply Like
  • chopchop0
    , contributor
    Comments (3798) | Send Message
     
    good points.

     

    PSX is well balanced and IMO is much better than something like VLO which is more just a pure refining play
    29 Jan 2014, 12:18 PM Reply Like
  • Michael Fitzsimmons
    , contributor
    Comments (9491) | Send Message
     
    It was an awesome quarter. In addition to the earnings, be sure to read management commentary in the company's press release:
    http://bit.ly/1iaknmH
    You gotta love a share-holder friendly management that is so transparent about its operations - it's refreshing!
    29 Jan 2014, 01:41 PM Reply Like
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