The board of administrators of Phillips 66 Co. has accepted a quarterly dividend of $1.15 per frequent share, up 10 p.c, the downstream power firm mentioned.
“The dividend enhance displays the arrogance now we have in our rising mid-cycle money movement era and disciplined strategy to capital allocation, together with a safe, aggressive and rising dividend”, president and chief government Mark Lashier mentioned in a press release. “Since our formation in 2012, now we have steadily raised our dividend, leading to a 16 p.c compound annual development price.
“We’re well-positioned to proceed delivering vital shareholder worth by means of the profitable execution of our strategic priorities, together with returning $13 billion to $15 billion to shareholders by means of dividends and share repurchases between July 2022 and year-end 2024”.
- Advertisement -
Houston, Texas-based Phillips 66 earlier mentioned in its quarterly earnings launch it plans to promote property value $3 billion to help its shareholder return goal and different long-term priorities, whereas focusing funding on low-cost however high-return tasks.
The refining-focused firm reported a fall in web revenue to $1.3 billion for the fourth quarter of 2023 from $2.1 billion for the prior three-month interval and $1.9 billion from the corresponding quarter 2022. Phillips 66’s full-year web earnings dropped to $7 billion from $11 billion as its refining margin continued to say no.
The skid in annual web earnings mirrored a lower in yearly refining margin to $17.35 a barrel in 2023 from $21.29 in 2022. For the October–December 2023 quarter, Phillips 66’s refining margin dipped to $14.41 per barrel from $18.96 within the third quarter of 2023 and $19.73 within the comparable interval 2022.
“Realized margins declined primarily attributable to decrease market crack spreads, partially offset by stock hedge impacts, larger Gulf Coast clear product realizations and powerful industrial outcomes”, Phillips 66 mentioned within the launch January 31.
Nevertheless, it mentioned the October–December 2023 interval marked the fourth consecutive quarter of above-industry-average crude utilization, at 92 p.c.
Phillips 66 additionally highlighted its market seize price surged to 107 p.c from 66 p.c.
Final November an investor group known as for brand new names on the corporate’s board to treatment refining “underperformance”. Elliott Funding Administration LP, which disclosed an funding of about $1 billion in Phillips 66, rued the corporate’s shifting of focus away from the refining sector in recent times. “Because of this, operational execution has suffered, and the Firm was poorly positioned to benefit from the refining super-cycle in 2022 and 2023”, it mentioned in a letter to Phillips 66 November 29. “Throughout this transformative interval, friends comparable to Marathon Petroleum and Valero Vitality have been much better ready”.
“Over the previous three years, as Phillips 66 has fallen additional and additional behind, its inventory has meaningfully underperformed these friends”, Elliott added, blaming underperformance in refining and poor execution of cost-reduction methods.
Phillips 66 initially rejected the proposal however on February 13 it introduced the appointment of a brand new impartial director and mentioned it could title one other member to the board within the coming months. The adjustments, which consequence within the board having 14 administrators together with 12 impartial, have been coordinated with Elliott, Phillips 66 mentioned.
Robert W. Pease, who had held senior roles in several companies together with Shell Buying and selling (U.S.) Co., has been named to the board. “As well as, Phillips 66 and Elliott Funding Administration L.P. have agreed to work collectively to establish a second mutually agreed director to be named over the approaching months”, Phillips 66 mentioned on the time.
Phillips 66 will announce its outcomes for the primary quarter of 2024 on April 26, in response to an organization media launch March 14.
To contact the writer, e mail jov.onsat@rigzone.com
