This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Phillips 66 Reports Third-Quarter Earnings Of $1.6 Billion Or $2.51 Per Share

Chemicals

The Chemicals segment consists of Phillips 66’s equity investment in Chevron Phillips Chemical Company (CPChem). Chemicals third-quarter earnings were $153 million. Adjusted earnings of $275 million exclude losses associated with the early retirement of debt, impairments of fixed assets and an increase in deferred tax liabilities.

Adjusted earnings improved $82 million compared to the same quarter last year, primarily due to improved margins and lower utility costs. Stronger olefins chain margins resulted from lower ethane and propane feedstock prices. CPChem captured cost advantages in the North American and Middle East ethylene and derivative markets by achieving high utilization rates. In CPChem’s Olefins and Polyolefins segment, global utilization was 97 percent during the third quarter, consistent with performance from the same period last year.

As planned, CPChem fully repaid its outstanding fixed-rate notes by retiring the remaining $400 million of notes during the quarter. Distributions to its owners, which had been suspended during the period of debt repayment, resumed early in the fourth quarter.

Corporate and Other

Corporate and Other costs, including interest expense, repositioning costs, corporate staff compensation and benefits, and technology, were $125 million after-tax for the quarter. Adjusted for $13 million of repositioning expenses, costs were $112 million for the third quarter including $47 million of net interest expense.

Financial Position, Liquidity and Return of Capital

During the quarter Phillips 66 generated $1.9 billion in cash from operations. The company funded a $339 million capital program.

The company ended the third quarter with $4.4 billion of cash and cash equivalents and $8.0 billion of debt. The debt-to-capital ratio was 28 percent, improved from 30 percent at the end of the second quarter. The net-debt-to-capital ratio was 15 percent at quarter close.

The company realized strong returns in the third quarter with a reported year-to-date (YTD) annualized return on capital employed (ROCE) of 18 percent. R&M and Chemicals reported returns of 21 percent and 25 percent, respectively.

3 of 6

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,098.45 +18.88 0.11%
S&P 500 2,003.37 +6.63 0.33%
NASDAQ 4,580.2710 +22.5760 0.50%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs