Phillips 66 +5% after higher refining margins spark big Q4 beat

|About: Phillips 66 (PSX)|By:, SA News Editor

Phillips 66 (NYSE:PSX+5% pre-market after crushing Wall Street expectations for Q4 earnings and revenues, the latest refiner to report soaring margins.

PSX says its Q4 realized refining margins skyrocketed 84% to $16.53/bbl from $8.98/bbl in the prior-year quarter and jumped 24% from $13.36/bbl in Q3; the company's worldwide crude utilization rate for the quarter was 99%.

Q4 refining pre-tax income rose 62% to $2B from $1.23B in Q3, largely driven by the Central Corridor region, where refineries captured the benefit of expanded discounts on Canadian crudes by running at 106% utilization during the quarter, and on the Gulf Coast, which operated at 100% utilization.

PSX says Q4 pre-tax income of $379M in its midstream and $589M in the marketing unit generated new quarterly records.

The company generated $4.1B in cash from operations during Q4, including $840M of cash distributions from equity affiliates.

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