Summary
Phillips 66 reported a net income of $863 million for the second quarter of 2014, a decrease from $958 million in the same period of the prior year. This decline was primarily attributed to lower realized refining margins due to decreased market crack spreads, partially offset by widening crude differentials. The Marketing and Specialties (M&S) segment also experienced lower margins, contributing to the overall decrease. For the first six months of 2014, net income increased to $2,435 million from $2,365 million in the prior year, largely due to a significant non-cash gain of $696 million from the PSPI share exchange and improved Chemical segment margins, which helped offset lower refining and M&S margins. Cash flow from operations remained robust, with $2,228 million generated in the first six months of 2014, although this was lower than the $3,181 million generated in the same period of 2013. The company utilized cash for capital expenditures, share repurchases, and dividends, ending the quarter with $5.0 billion in cash and cash equivalents. Management highlighted strategic acquisitions and an increased dividend, signaling confidence in future performance and commitment to returning value to shareholders. The company also noted a change in its operating segment structure for internal reporting, with prior periods recast for comparability.
Financial Highlights
41 data points| Revenue | $45.55B |
| SG&A Expenses | $412.00M |
| Operating Income | $1.73B |
| Net Income | $863.00M |
| EPS (Basic) | $1.52 |
| EPS (Diluted) | $1.51 |
| Shares Outstanding (Basic) | 565.80M |
| Shares Outstanding (Diluted) | 571.28M |
Key Highlights
- 1Phillips 66 reported second-quarter 2014 net income of $863 million, down from $958 million in Q2 2013, primarily due to lower refining margins.
- 2For the first six months of 2014, net income rose to $2,435 million from $2,365 million in H1 2013, boosted by a $696 million non-cash gain from the PSPI share exchange.
- 3Cash flow from operating activities for the first six months of 2014 was $2,228 million, a decrease from $3,181 million in the comparable period of 2013.
- 4The company utilized significant cash for share repurchases ($1,256 million in H1 2014) and dividends ($510 million in H1 2014), alongside capital expenditures ($1,133 million in H1 2014).
- 5Total assets grew to $50.8 billion at June 30, 2014, from $49.8 billion at December 31, 2013, with an increase in inventories and property, plant, and equipment.
- 6The company declared a quarterly dividend of $0.50 per share and indicated forecasts for annual double-digit dividend rate increases in 2015 and 2016.
- 7Phillips 66 completed the acquisition of Spectrum Corporation and is proceeding with the acquisition of a storage terminal near Beaumont, Texas, demonstrating a focus on growth and strategic expansion.