Summary
Phillips 66 (PSX) reported a net loss of $3.98 billion for the fiscal year ended December 31, 2020, a significant decrease from a net income of $3.08 billion in 2019. This downturn was largely attributed to the adverse impacts of the COVID-19 pandemic, which led to reduced demand for refined petroleum products, lower commodity prices, and significantly depressed refining margins. The company took several measures to enhance liquidity, including issuing debt, temporarily suspending share repurchases, and reducing capital spending. Despite the challenging environment, Phillips 66 maintained its quarterly dividend distributions. The company's strategic priorities remain focused on operating excellence, disciplined capital allocation for growth in Midstream and Chemicals, enhancing shareholder returns, and fostering a high-performing organization. Looking ahead, Phillips 66 has budgeted capital expenditures of $1.7 billion for 2021, with a focus on completing existing growth projects and investments in renewable fuels, such as the reconfiguration of its San Francisco Refinery. The company is also prioritizing debt repayment to maintain its investment-grade credit ratings.
Financial Highlights
49 data points| Revenue | $64.13B |
| Cost of Revenue | $57.71B |
| Gross Profit | $6.42B |
| R&D Expenses | $48.00M |
| SG&A Expenses | $1.54B |
| Operating Income | -$3.98B |
| Interest Expense | $550.00M |
| Net Income | -$3.98B |
| EPS (Basic) | $-9.06 |
| EPS (Diluted) | $-9.06 |
| Shares Outstanding (Basic) | 439.53M |
| Shares Outstanding (Diluted) | 439.53M |
Key Highlights
- 1In 2020, Phillips 66 reported a net loss of $3.98 billion, a stark contrast to the $3.08 billion net income in 2019, primarily due to the severe impacts of the COVID-19 pandemic on demand and refining margins.
- 2The company implemented liquidity-enhancing measures, including issuing $3.75 billion in senior unsecured notes and borrowing $500 million under a term loan facility, while temporarily suspending its share repurchase program.
- 3Capital expenditures were reduced by over $700 million compared to the original budget in 2020, and cost reduction targets were exceeded.
- 4Despite the challenging market, Phillips 66 maintained its regular quarterly dividend distributions to shareholders.
- 5Strategic focus includes investing in Midstream and Chemicals growth, with a 2021 capital budget of $1.7 billion, prioritizing sustaining capital and renewable fuels projects like the San Francisco Refinery reconfiguration.
- 6The Refining segment experienced significant impairments, including a goodwill impairment of $1.845 billion and a long-lived asset impairment of $1.03 billion related to the San Francisco Refinery reconfiguration.
- 7The company's Midstream segment saw a decrease in results due to impairments on certain joint venture investments and the cancellation of the Red Oak Pipeline project.