Phillips 66 has reported $8 million in web revenue for the fourth quarter of 2024, a dramatic fall from $1.26 billion for a similar three-month interval in 2023 as refining margins softened.
The Houston, Texas-based firm noticed refining losses deepen from $108 million for the third quarter of 2024 to $775 million for the fourth quarter, in response to outcomes it revealed on-line. For the fourth quarter of the prior yr, Phillips 66’s refining enterprise logged $814 million in web revenue.
Realized refining margins averaged $6.08 a barrel within the October-December 2024 interval, down from $8.31 for the prior quarter and $14.41 for the corresponding quarter in 2023.
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Phillips 66 stored its crude capability utilization steady at 94 % between the third and fourth quarters of 2024.
Refining turnaround bills dropped sequentially from $137 million to $123 million.
When adjusted for extraordinary of nonrecurring gadgets, the refining phase lands at a $759 million web loss for the fourth quarter of 2024, in comparison with a $67 million web loss for the third quarter of 2024.
Earlier than curiosity, tax, amortization and depreciation deductions, the refining phase had an adjusted web lack of $298 million, in comparison with an adjusted web revenue of $188 million for the previous quarter.
“Refining adjusted pre-tax loss elevated [quarter-on-quarter] primarily because of a decline in realized margins largely pushed by decrease market crack spreads and accelerated depreciation related to the deliberate ceasing of operations on the Los Angeles Refinery, partially offset by the next clear product yield”, Phillips 66 mentioned.
Phillips 66 introduced October 16, 2024, it will stop manufacturing on the Los Angeles refinery by the top of 2025, with chief govt Mark Lashier citing uncertainty from “market dynamics”.
Pipeline throughput within the fourth quarter of 2024 averaged 759,000 barrels per day (bpd), down from 762,000 bpd within the prior quarter.
Midstream contributed $673 million in adjusted web revenue for the fourth quarter of 2024. Chemical substances posted $107 million, whereas $28 million got here from renewable fuels.
Midstream adjusted EBITDA was $708 million. That of chemical compounds was $72 million. Renewable fuels adjusted EBITDA was $28 million.
“Midstream fourth-quarter 2024 adjusted pre-tax revenue elevated in contrast with the third quarter primarily because of larger NGL [natural gas liquids] margins and volumes”, Phillips 66 mentioned.
“Chemical substances adjusted pre-tax revenue decreased primarily because of decrease margins, in addition to larger turnaround and upkeep prices”.
It added, “Renewable fuels pre-tax outcomes elevated primarily because of larger margins on the Rodeo Advanced and stronger worldwide outcomes”.
General Phillips 66 registered an adjusted web lack of $61 million, or unfavourable $0.15 per share – in comparison with $1.36 billion in adjusted web revenue for a similar interval in 2023.
Nonetheless the corporate beat Zacks’ loss estimate of 20 cents, derived from projections by brokerage analysts.
Phillips 66 distributed $1.1 billion to shareholders within the fourth quarter of 2024 by way of dividends and buybacks.
It ended 2024 with $1.7 billion in money and money equivalents and $4.6 billion in dedicated capability from credit score amenities. Whole debt was $20.06 billion.
To contact the creator, e-mail jov.onsat@rigzone.com
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