Summary
Phillips 66 (PSX) reported a net income of $550 million for the second quarter of 2017, a significant increase from $496 million in the same period of 2016. This growth was primarily driven by higher realized refining margins and improved equity earnings from DCP Midstream, partially offset by increased refining turnaround costs and higher interest expenses. For the first six months of 2017, net income attributable to Phillips 66 was $1,085 million, up from $881 million in the prior year. A key contributor to this year-over-year improvement was a $261 million after-tax gain recognized from the consolidation of Merey Sweeny, L.P. (MSLP). The company also benefited from stronger refining margins and increased equity earnings from DCP Midstream, though these were partially offset by higher turnaround costs and lower U.S. marketing margins.
Financial Highlights
46 data points| Revenue | $24.09B |
| Cost of Revenue | $18.35B |
| Gross Profit | $5.73B |
| SG&A Expenses | $439.00M |
| Operating Income | $1.08B |
| Net Income | $550.00M |
| EPS (Basic) | $1.06 |
| EPS (Diluted) | $1.06 |
| Shares Outstanding (Basic) | 517.78M |
| Shares Outstanding (Diluted) | 520.16M |
Key Highlights
- 1Net income attributable to Phillips 66 increased to $550 million in Q2 2017 from $496 million in Q2 2016, driven by higher refining margins and improved equity earnings from DCP Midstream.
- 2For the first six months of 2017, net income rose to $1,085 million from $881 million in the prior year, bolstered by a $261 million after-tax gain from the consolidation of MSLP.
- 3Sales and other operating revenues increased by 10% and 20% in the second quarter and first six months of 2017, respectively, largely due to higher prices for petroleum products, crude oil, and NGLs.
- 4The company reported $1,316 million in cash from operations for the first six months of 2017, though this was a slight decrease from $1,413 million in the same period of 2016, primarily due to higher inventory builds.
- 5Phillips 66 maintained a strong liquidity position, with $2.2 billion in cash and cash equivalents and approximately $5.6 billion in total capacity available under its liquidity facilities as of June 30, 2017.
- 6Total debt remained stable at approximately $10 billion, with the debt-to-capital ratio at 30%, consistent with the company's target range.