Summary
Phillips 66 (PSX) reported a significant net loss of $2.496 billion for the first quarter of 2020, a substantial decline from the $204 million net income in the prior year. This downturn was primarily driven by the unprecedented market disruptions caused by the COVID-19 pandemic and the oil price war between Russia and OPEC, which led to a severe drop in demand and prices for crude oil and refined products. The company also recorded substantial impairment charges, including an $1.845 billion goodwill impairment in its Refining segment and a $1.161 billion impairment on its investment in DCP Midstream. Despite the challenging environment, Phillips 66 took proactive steps to bolster liquidity, including securing a $2 billion term loan facility, issuing $1 billion in senior notes, temporarily suspending share repurchases, and reducing capital spending plans. The company ended the quarter with $1.2 billion in cash and cash equivalents and approximately $5.7 billion in available committed capacity under its revolving credit facilities, indicating a focus on financial resilience.
Financial Highlights
46 data points| Revenue | $20.88B |
| Cost of Revenue | $18.44B |
| Gross Profit | $2.44B |
| SG&A Expenses | $319.00M |
| Operating Income | -$2.50B |
| Net Income | -$2.50B |
| EPS (Basic) | $-5.66 |
| EPS (Diluted) | $-5.66 |
| Shares Outstanding (Basic) | 441.35M |
| Shares Outstanding (Diluted) | 441.35M |
Key Highlights
- 1Reported a net loss of $2.496 billion for Q1 2020, a significant decrease from a net income of $204 million in Q1 2019.
- 2Recorded impairment charges totaling $3.006 billion, including $1.845 billion for goodwill in the Refining segment and $1.161 billion for its investment in DCP Midstream.
- 3Revenues decreased to $20.878 billion from $23.658 billion in the prior year's comparable quarter, reflecting the adverse impact of market conditions.
- 4Took significant steps to enhance liquidity, including drawing $1 billion on a new $2 billion term loan facility and issuing $1 billion in senior unsecured notes.
- 5Reduced consolidated capital spending plans for 2020 by $700 million, aiming to preserve cash.
- 6Maintained $1.2 billion in cash and cash equivalents and $5.7 billion in available committed credit capacity at the end of the quarter.
- 7Experienced a significant decline in its Midstream segment due to a $1.161 billion impairment of its DCP Midstream investment, though other Midstream operations showed improvement.