Phillips 66 Q1 profit plunges but still tops estimates

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

Phillips 66's (PSX +0.1%) Q1 earnings fell by more than half from a year ago to $204M, but it was good enough to beat Wall Street estimates by a comfortable margin.

PSX says its Q1 realized refining margins fell 56% to $7.23/bbl from Q4, primarily due to major maintenance outages affecting five refineries, costing $148M; higher costs for Canadian crude also cut into its refining margins.

The refining sector lost $198M in the quarter, compared to a $2B profit in Q4 and a $112M profit in the year-ago period; PSX's worldwide utilization rate was 84% in Q1 vs. 89% a year ago.

PSX's pipeline business earned $316M in income vs. $379M in Q4 2018 and $280M in the prior-year quarter.

Chevron Phillips Chemical, owned through a joint venture with Chevron, made $227M in pre-tax income, helped by higher polyethylene sales volumes and a 98% utilization rate across its chemical plants.

In updates of its major Permian Basin pipeline projects, Phillips 66 Partners' (NYSE:PSXP) 900K-barrel Gray Oak Pipeline is expected to be in service by the end of this year, and DCP Midstream's (NYSE:DCP) 25%-owned, 2B cf/day Gulf Coast Express Pipeline project is expected to be completed in Q4 2019.

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