Phillips 66 (NYSE: PSX), an energy manufacturing and logistics company, announces third-quarter earnings of $535 million, compared with earnings of $1.6 billion in the third quarter of 2012. Adjusted earnings were $1.9 billion in the same period last year.
"We ran well during the quarter," said Greg Garland, chairman and CEO of Phillips 66. "Weaker refining margins had a significant impact on our earnings. Chemicals posted strong earnings as a result of solid utilization rates and good margins."
"We're reinvesting in our businesses while increasing shareholder distributions. We continue to capitalize on the rise of North American energy production, focusing investment in the rapidly growing midstream and chemicals sectors. This quarter, we returned more than $800 million of capital to our shareholders through dividends and share repurchases. Earlier this month, we completed our initial $2 billion share repurchase program, began share repurchases under our additional $1 billion program and announced a 25 percent increase in our dividend," said Garland.
MidstreamThe Midstream segment generated earnings of $148 million in the third quarter of 2013, compared with a loss of $72 million and adjusted earnings of $88 million in the same period last year. Phillips 66’s Transportation business generated earnings of $54 million during the third quarter of 2013. In the same period of 2012, Transportation recorded a loss of $128 million and adjusted earnings of $32 million. The $22 million increase from the prior year's adjusted earnings was mostly due to improved margins resulting from higher throughput fees, as well as increased volumes. Third-quarter earnings related to the company’s equity investment in DCP Midstream were $87 million, $48 million higher than in the third quarter of 2012. This increase was partially due to gains resulting from the issuance of units by DCP Midstream Partners, LP. In addition, earnings benefited from improved margins and higher volumes.