Built-in downstream agency Phillips 66 posted first-quarter earnings of $748 million, in contrast with earnings of $1.3 billion within the earlier quarter and $1.96 billion in the identical quarter in 2023.
Excluding particular objects of $74 million, the corporate had adjusted earnings of $822 million within the first quarter, in comparison with fourth-quarter adjusted earnings of $1.36 billion, the corporate mentioned in a latest earnings launch.
Phillips 66’s adjusted earnings per share (EPS) for the quarter was $1.90, in comparison with adjusted EPS of $4.21 within the first quarter final 12 months. The Zacks Consensus Estimate was $2.05 per share.
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“Within the first quarter, we progressed our strategic priorities and returned $1.6 billion to shareholders,” Phillips 66 President and CEO Mark Lashier mentioned in a press release. “Whereas our crude utilization charges had been robust, our outcomes had been affected by upkeep that restricted our skill to make higher-value merchandise. We had been additionally impacted by the renewable fuels conversion at Rodeo, in addition to the impact of rising commodity costs on our stock hedge positions. The upkeep is behind us, our belongings are at the moment working close to historic highs and we’re prepared to fulfill peak summer time demand”.
The corporate’s midstream first-quarter pre-tax revenue was $554 million, in contrast with $756 million within the fourth quarter of 2023. The leads to the primary quarter included a $59 million asset impairment, whereas the fourth-quarter outcomes included a $2 million tax profit, it famous.
For its Refining section, first-quarter reported pre-tax revenue was $131 million, in contrast with pre-tax revenue of $814 million within the fourth quarter of 2023. The leads to the primary quarter included a $104 million asset impairment and a $7 million profit associated to a authorized settlement, whereas the fourth-quarter outcomes included a $17 million tax profit, Phillips 66 mentioned.
The corporate mentioned it continues to put money into high-return, low-capital initiatives to enhance asset reliability and market seize. Since 2022, accomplished initiatives have added over three % to market seize based mostly on mid-cycle pricing, it famous.
“We not too long ago launched a course of to promote our retail advertising enterprise in Germany and Austria, according to our plan to divest non-core belongings. A significant milestone was achieved with the startup of our Rodeo Renewable Power Advanced, positioning Phillips 66 as a world chief in renewable fuels,” Lashier mentioned.
Phillips 66 mentioned it plans to monetize belongings “that not match its long-term technique”. The corporate is progressing with the potential divestiture of its retail advertising enterprise in Germany and Austria, with the completion topic to market and different circumstances, together with customary approvals, it mentioned.
Phillips 66 within the first quarter began up its Rodeo Renewed challenge in San Francisco, California. The Rodeo Renewable Power Advanced is now producing 30,000 barrels per day of renewable fuels. The ability is on observe to supply roughly 50,000 barrels per day, or 800 million gallons per 12 months, of renewable fuels by the top of the second quarter, positioning the corporate as “a frontrunner in renewable fuels,” it remarked.
“We stay dedicated to delivering elevated worth to our shareholders. Now we have returned $9.9 billion to shareholders by share repurchases and dividends since July 2022, on tempo to fulfill our goal of $13 billion to $15 billion by year-end 2024. Our strategic priorities put us on a transparent path to realize our $14 billion mid-cycle adjusted EBITDA goal by 2025 and return over 50 % of working money flows to shareholders,” Lashier mentioned.
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