- Phillips 66 (NYSE:PSX) -1.9% premarket after adjusted Q4 earnings fell 75% Y/Y and came in well short of expectations, capping off a year in which U.S. refiners struggled with shrinking margins on fuel products.
- While Q4 results were "disappointing and reflect challenging market conditions," PSX says it expects to generate additional free cash flow and create shareholder value in 2017 as major growth projects are completed.
- PSX's refining business lost $95M in Q4, driven by lower realized margins mostly caused by decreased market crack spreads, as well as higher costs and lower volumes due to turnaround activity; the business had earned $376M in the year-ago quarter.
- Q4 earnings fell in the chemicals, midstream, and marketing and specialties segments.
- PSX says its worldwide crude utilization rate was 93%, down from 97% in Q3.
- PSX says 2016 capital spending totaled $2.8B, including $461M at Phillips 66 Partners (NYSE:PSXP); in December, PSX said it would cut 2017 capex by 25%.