By Tess Stynes
Phillips 66 on Wednesday said its fourth-quarter earnings rose
17%, but refining margins fell across most regions.
Phillips 66 reported a profit of $826 million, or $1.37 a share,
up from $708 million, or $1.11 a share, a year earlier. Excluding
items such as a big year-earlier write-down, adjusted earnings fell
to $1.34 a share from $2.04 a share a year ago. Revenue rose 1.7%
to $43.84 billion.
Analysts polled by Thomson Reuters expected a profit of $1.10 a
share and revenue of $42.11 billion.
Phillips 66 has been benefiting from access to lower priced
crudes. In the latest period, 94% of the company's U.S. crude slate
was advantaged, or lower cost, compared with 67% a year
earlier.
"We ran well during the fourth quarter, allowing us to
capitalize on favorable crude differentials while exporting a
record volume of refined products," Chief Executive Greg Garland
said.
Houston-based Phillips 66 was spun out from ConocoPhillips in
2012. Since then, the refining company has tried to consolidate its
geographic footprint and concentrate on making transportation fuels
and chemicals in the U.S.
Adjusted earnings at the company's refining sector dropped 53%
in the quarter, as margins fell in all regions except the Gulf
Coast.
The company has reorganized its oil pipelines and other
midstream assets into a master limited partnership, Phillips 66
Partners LP.
Phillips 66 also has increased investments at Chevron Phillips
Chemical Co., a petrochemical business it co-owns with oil major
Chevron Corp. The company also markets gasoline via independently
owned gas stations sporting its Phillips 66 logo.
Phillips 66 recently reached a deal to sell its Phillips
Specialty Products Inc. business to Warren Buffett's Berkshire
Hathaway Inc. in a stock deal initially valued at about $1.4
billion.
Write to Tess Stynes at tess.stynes@wsj.com
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