Summary
Phillips 66 reported net income attributable to the company of $535 million ($0.87 per diluted share) for the third quarter of 2013, a significant decrease from $1,599 million ($2.51 per diluted share) in the same period last year. This decline was primarily driven by lower refining margins due to decreased market crack spreads and tightened crude differentials, compounded by higher operating expenses related to refinery turnarounds and environmental costs. Despite the drop in profitability, the company generated strong operating cash flow of $5.1 billion for the nine months ended September 30, 2013, and ended the quarter with a robust cash position of $5.9 billion. Key strategic developments during the quarter included the successful initial public offering of Phillips 66 Partners LP, which raised $404 million in net proceeds and is expected to provide a platform for midstream growth. The company also continued its commitment to returning capital to shareholders through dividends and a significant share repurchase program, completing its initial $2 billion authorization and announcing a new $1 billion program. Management expects its current cash and credit facilities to be sufficient to meet its future funding requirements, including capital expenditures and debt obligations.
Financial Highlights
42 data points| Revenue | $44.15B |
| SG&A Expenses | $349.00M |
| Operating Income | $2.86B |
| Net Income | $535.00M |
| EPS (Basic) | $0.88 |
| EPS (Diluted) | $0.87 |
| Shares Outstanding (Basic) | 608.93M |
| Shares Outstanding (Diluted) | 614.52M |
Key Highlights
- 1Net income for the third quarter of 2013 was $535 million, down from $1,599 million in the prior year's quarter, primarily due to lower refining margins.
- 2Diluted earnings per share (EPS) for the third quarter were $0.87, a decrease from $2.51 in the third quarter of 2012.
- 3The company generated $5.1 billion in cash from operating activities for the first nine months of 2013, a substantial increase from $2.9 billion in the same period of 2012.
- 4Phillips 66 Partners LP completed its initial public offering in July 2013, raising $404 million in net proceeds and strengthening the company's midstream segment.
- 5The company repurchased $674 million of its common stock in the third quarter of 2013, completing its initial $2 billion share repurchase program and announcing a new $1 billion program.
- 6Total assets increased to $51 billion as of September 30, 2013, from $48 billion at the end of 2012, supported by cash generation and strategic asset sales.