Summary
Phillips 66 (PSX) reported strong financial performance for the third quarter and the first nine months of 2017, demonstrating significant year-over-year earnings growth. The company's net income attributable to Phillips 66 increased by 61% to $823 million in Q3 2017 and by 37% to $1.908 billion in the first nine months of 2017, driven primarily by higher realized refining margins and improved earnings from equity affiliates. The company maintained a robust balance sheet with $1.5 billion in cash and cash equivalents and substantial liquidity available through its credit facilities. Significant events during the period included the consolidation of Merey Sweeny, L.P. (MSLP) resulting in a substantial gain, and strategic asset contributions to Phillips 66 Partners, strengthening its midstream segment. Shareholder returns were supported by consistent dividend payments and active share repurchases.
Financial Highlights
46 data points| Revenue | $25.63B |
| Cost of Revenue | $19.46B |
| Gross Profit | $6.16B |
| SG&A Expenses | $435.00M |
| Operating Income | $1.91B |
| Net Income | $823.00M |
| EPS (Basic) | $1.60 |
| EPS (Diluted) | $1.60 |
| Shares Outstanding (Basic) | 512.92M |
| Shares Outstanding (Diluted) | 515.96M |
Key Highlights
- 1Net income attributable to Phillips 66 significantly increased by 61% to $823 million in Q3 2017 and by 37% to $1.908 billion in the first nine months of 2017 compared to the prior year periods.
- 2Strong performance in the Refining segment was driven by higher realized refining margins, largely due to improved market crack spreads, and lower turnaround costs.
- 3The company successfully consolidated Merey Sweeny, L.P. (MSLP) in February 2017, recognizing a pre-tax gain of $423 million.
- 4Phillips 66 Partners LP received significant asset contributions in October 2017, including interests in DAPL, ETCO, and MSLP, bolstering its midstream operations.
- 5The company maintained robust liquidity with $1.5 billion in cash and cash equivalents and $5.4 billion in total committed capacity under its credit facilities as of September 30, 2017.
- 6Shareholder returns were supported by quarterly dividends of $0.70 per share and significant share repurchases, with an additional $3 billion authorized in October 2017.
- 7Operating expenses increased due to higher environmental, transportation, and hurricane-related costs, as well as increased employee benefit plan contributions, but were partially offset by lower refining turnaround costs in Q3.