Summary
Phillips 66 reported net income attributable to the company of $496 million for the second quarter of 2016, a significant decrease from $1,012 million in the same period of 2015. This decline was primarily driven by lower realized margins in the Refining segment due to decreased crack spreads and reduced olefins and polyolefins margins in the Chemicals segment. The Marketing and Specialties segment also saw a decrease, partly due to the absence of a deferred gain recognized in the prior year. Despite the lower net income, the company generated $1,413 million in cash from operating activities for the first six months of 2016, though this was down from $2,779 million in the prior year. Shareholder returns remained a focus, with the company continuing to pay dividends and repurchase shares. The company's balance sheet showed total assets of $50.4 billion and total liabilities of $26.3 billion as of June 30, 2016. Cash and cash equivalents stood at $2.2 billion, down from $3.1 billion at the end of 2015. The company reported a debt-to-capital ratio of 27%, which is within its target range. Phillips 66 Partners LP continued to be a key financing vehicle, raising $669 million in public offerings during the period. The company maintained significant liquidity with approximately $5.4 billion in available capacity under its credit facilities and no outstanding commercial paper.
Financial Highlights
44 data points| Revenue | $21.85B |
| SG&A Expenses | $421.00M |
| Operating Income | $881.00M |
| Net Income | $496.00M |
| EPS (Basic) | $0.94 |
| EPS (Diluted) | $0.93 |
| Shares Outstanding (Basic) | 528.25M |
| Shares Outstanding (Diluted) | 531.06M |
Key Highlights
- 1Net income attributable to Phillips 66 decreased significantly to $496 million in Q2 2016 from $1,012 million in Q2 2015, largely due to lower refining margins and chemical margins.
- 2Total revenues decreased by 23% to $21,849 million in Q2 2016 compared to $28,512 million in Q2 2015, primarily due to lower commodity prices.
- 3Cash flow from operating activities for the first six months of 2016 was $1,413 million, a decrease from $2,779 million in the same period of 2015, reflecting lower realized margins and equity affiliate distributions.
- 4Phillips 66 Partners LP raised $669 million in public offerings, supporting the company's liquidity and investment activities.
- 5The company repurchased $633 million of its common stock and paid $625 million in dividends during the first six months of 2016, demonstrating a commitment to shareholder returns.
- 6The Refining segment experienced lower margins, with the worldwide refining margin at $7.13 per barrel in Q2 2016, down from $11.70 per barrel in Q2 2015.
- 7The company maintained a strong liquidity position, with $2.2 billion in cash and cash equivalents and $5.4 billion in available credit facilities as of June 30, 2016.