This Day On The Street
Continue to site
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

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


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

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
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 18,034.93 +208.63 1.17%
S&P 500 2,100.40 +19.22 0.92%
NASDAQ 4,994.6020 +62.7870 1.27%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs