Summary
Phillips 66 reported a significant increase in net income attributable to Phillips 66, rising to $535 million in the first quarter of 2017 from $385 million in the prior year's comparable period, representing a 39% increase. This growth was primarily driven by a substantial gain from the consolidation of Merey Sweeny, L.P. (MSLP) and improved refining margins. Despite a substantial increase in sales and other operating revenues, the company utilized more cash in operating activities compared to the previous year, partly due to larger seasonal inventory builds. The company's liquidity remains robust, with $1.5 billion in cash and cash equivalents and $5.5 billion in available liquidity under its credit facilities at the end of the quarter. Phillips 66 continued its commitment to shareholder returns through dividend payments ($326 million) and share repurchases ($285 million), while also investing $470 million in capital expenditures and investments across its business segments. The company also successfully refinanced a portion of its debt after the quarter's close.
Financial Highlights
44 data points| Revenue | $22.89B |
| SG&A Expenses | $384.00M |
| Operating Income | $535.00M |
| Net Income | $535.00M |
| EPS (Basic) | $1.02 |
| EPS (Diluted) | $1.02 |
| Shares Outstanding (Basic) | 521.65M |
| Shares Outstanding (Diluted) | 524.52M |
Key Highlights
- 1Net income attributable to Phillips 66 increased by 39% to $535 million in Q1 2017, up from $385 million in Q1 2016, largely due to a $423 million pre-tax gain from consolidating Merey Sweeny, L.P. (MSLP).
- 2Total revenues and other income saw a significant increase of 33% to $23.7 billion, driven by higher commodity prices and increased sales volumes across segments.
- 3The Refining segment was the primary driver of earnings growth, with net income more than doubling to $259 million, boosted by the MSLP consolidation and improved refining margins.
- 4The company maintained strong liquidity, ending the quarter with $1.5 billion in cash and cash equivalents and $5.5 billion in available credit facilities.
- 5Phillips 66 returned $611 million to shareholders through dividends ($326 million) and share repurchases ($285 million) in the quarter.
- 6Operating cash flow turned negative, decreasing to $(549) million from $258 million in the prior year, primarily due to larger seasonal inventory builds.
- 7The company announced after the quarter's end the completion of a private offering of $600 million in unsecured notes and $900 million in term loans to repay outstanding debt.