Phillips 66 Profit Tops Estimates as Chemicals Margins Riseby
Phillips 66 reported second-quarter earnings that beat analysts’ estimates as its chemicals segment saw improved margins.
Net income for the second quarter was $496 million, or 93 cents a share, compared with $1.01 billion a year earlier, the Houston-based company said in a statement. Excluding one-time items, the earnings were $499 million, or 94 cents a share, beating the 93-cent average of 17 analysts’ estimates compiled by Bloomberg ahead of the release.
The chemical segment earnings increased to $190 million from $156 million in the first quarter, even as they dipped from $295 million in the same period last year. Refining earnings were $149 million, compared with $86 million in the previous quarter and $604 million in the year-ago period.
“Despite higher worldwide market crack spreads, realized margins were flat compared to the prior quarter primarily due to lower clean product differentials and lower secondary product margins due to rising crude prices," the company said of its refining segment.
Phillips 66 said CPChem’s U.S. Gulf Coast Petrochemicals Project is about 80 percent complete and startup is expected in the second half of 2017. The Freeport LPG Export Terminal will start up by the end of the year.
In the quarter, the company boosted its dividend by 12.5 percent.