Summary
Phillips 66 (PSX) reported a net income of $1.6 billion in 2016, a decrease from $4.3 billion in 2015, primarily due to lower refining margins and chemical margins. The company generated $3.0 billion in cash from operating activities, utilizing these funds for capital expenditures, dividends, and share repurchases. Strategic priorities for the company include operating excellence, growth through capital investments in its Midstream and Chemicals segments (notably CPChem's U.S. Gulf Coast ethane cracker project), delivering shareholder returns via dividends and buybacks, and fostering a high-performing organization. The company's diversified business model, encompassing Midstream, Chemicals, Refining, and Marketing & Specialties, demonstrated resilience in a low commodity price environment. Significant capital expenditures were made in the Midstream segment, particularly on projects like the Sweeny Fractionator and Freeport LPG Export Terminal, and pipeline development. The Chemicals segment, through its 50% investment in CPChem, saw continued construction of its U.S. Gulf Coast ethane cracker and polyethylene facilities, expected to be completed in 2017. The Refining segment operated at a high utilization rate of 96% in 2016, an improvement from 2015, despite facing compressed refining margins. The company also returned value to shareholders by increasing its quarterly dividend by 13% and repurchasing approximately $1.0 billion of its common stock.
Financial Highlights
49 data points| Revenue | $84.28B |
| Cost of Revenue | $62.47B |
| Gross Profit | $21.81B |
| R&D Expenses | $60.00M |
| SG&A Expenses | $1.64B |
| Operating Income | $1.55B |
| Net Income | $1.55B |
| EPS (Basic) | $2.94 |
| EPS (Diluted) | $2.92 |
| Shares Outstanding (Basic) | 527.53M |
| Shares Outstanding (Diluted) | 530.07M |
Key Highlights
- 1Phillips 66 generated $3.0 billion in cash from operating activities in 2016.
- 2Net income for 2016 was $1.6 billion, a decrease from $4.3 billion in 2015, driven by lower refining and chemical margins.
- 3The company declared and paid $1.3 billion in dividends and repurchased $1.0 billion of its common stock.
- 4Phillips 66 maintained a 96% refining capacity utilization rate in 2016, an increase from 91% in 2015.
- 5Major growth initiatives include CPChem's U.S. Gulf Coast ethane cracker and polyethylene facilities, with expected completion in 2017.
- 6The Midstream segment saw significant capital investment, including projects related to the Sweeny Fractionator and Freeport LPG Export Terminal.
- 7The company's stock price ranged between $71.74 and $90.87 in 2016.