Summary
Phillips 66 reported net income attributable to Phillips 66 of $524 million, or $1.07 per diluted share, for the first quarter of 2018. This represents a slight decrease from the $535 million, or $1.02 per diluted share, reported in the same period of 2017, primarily due to the absence of a significant gain from the consolidation of Merey Sweeny, L.P. in the prior year. Despite this, the company saw improvements in its Midstream and Chemicals segments, along with higher realized refining margins and benefits from the recent U.S. Tax Cuts and Jobs Act. The company generated $488 million in cash flow from operating activities, demonstrating solid operational performance. However, a significant portion of this cash, along with newly issued debt proceeds, was utilized for substantial share repurchases totaling $3.5 billion, alongside capital expenditures and dividend payments. This aggressive share repurchase program led to a decrease in cash and cash equivalents from $3.1 billion to $842 million by the end of the quarter.
Financial Highlights
46 data points| Revenue | $23.59B |
| Cost of Revenue | $21.14B |
| Gross Profit | $2.46B |
| SG&A Expenses | $386.00M |
| Operating Income | $524.00M |
| Net Income | $524.00M |
| EPS (Basic) | $1.07 |
| EPS (Diluted) | $1.07 |
| Shares Outstanding (Basic) | 487.06M |
| Shares Outstanding (Diluted) | 489.67M |
Key Highlights
- 1Net income attributable to Phillips 66 was $524 million ($1.07/share) for Q1 2018, down slightly from $535 million ($1.02/share) in Q1 2017, mainly due to the absence of a one-time gain from MSLP consolidation in the prior year.
- 2Operating cash flow was $488 million in Q1 2018, a significant improvement from a use of $549 million in Q1 2017, driven by favorable working capital changes and distributions from equity affiliates.
- 3The company repurchased a substantial $3.5 billion of its common stock during the quarter, funded by cash and new debt issuance, leading to a significant reduction in cash and cash equivalents to $842 million from $3.1 billion.
- 4Midstream segment net income increased significantly to $233 million from $112 million, driven by higher equity earnings from joint ventures and improved NGL and Other business performance.
- 5Chemicals segment net income rose to $232 million from $181 million, benefiting from higher Olefins and Polyolefins volumes and margins, as well as the tax reform.
- 6Refining segment net income decreased to $91 million from $259 million, impacted by the absence of the MSLP gain and lower equity earnings from WRB, though partially offset by higher realized refining margins.
- 7The effective income tax rate decreased to 18% in Q1 2018 from 29% in Q1 2017, primarily due to the lower U.S. federal corporate tax rate resulting from the Tax Cuts and Jobs Act.