Summary
Phillips 66 (PSX) reported a net loss attributable to the company of $799 million ($1.82 per diluted share) for the third quarter of 2020, a significant decline from the net income of $712 million ($1.58 per diluted share) reported in the same period last year. This downturn was primarily driven by the continued adverse effects of the COVID-19 pandemic on global economic activity, which led to decreased demand for refined petroleum products, lower refining margins, and reduced refinery throughput. The company also recorded substantial impairment charges totaling $1.14 billion in the quarter, including a $1.03 billion charge related to the planned reconfiguration of its San Francisco Refinery to produce renewable fuels and other asset impairments. For the nine months ended September 30, 2020, Phillips 66 reported a net loss attributable to the company of $3.44 billion ($7.83 per diluted share), compared to a net income of $2.34 billion ($5.13 per diluted share) in the prior year period. This substantial year-to-date loss was heavily impacted by significant impairment charges, including a $1.85 billion goodwill impairment in the Refining segment and the aforementioned asset impairments. Despite the challenging operating environment, the company took steps to enhance liquidity by borrowing under its term loan facility and issuing senior unsecured notes, while also reducing capital spending and operating costs.
Financial Highlights
46 data points| Revenue | $15.93B |
| Cost of Revenue | $14.51B |
| Gross Profit | $1.42B |
| SG&A Expenses | $384.00M |
| Operating Income | -$3.44B |
| Net Income | -$799.00M |
| EPS (Basic) | $-1.82 |
| EPS (Diluted) | $-1.82 |
| Shares Outstanding (Basic) | 438.92M |
| Shares Outstanding (Diluted) | 438.92M |
Key Highlights
- 1Net loss attributable to Phillips 66 of $799 million for Q3 2020, compared to net income of $712 million in Q3 2019.
- 2Year-to-date net loss attributable to Phillips 66 of $3.44 billion for the nine months ended September 30, 2020, compared to net income of $2.34 billion in the prior year period.
- 3Total impairment charges of $1.14 billion recognized in Q3 2020, including a significant charge for the San Francisco Refinery reconfiguration.
- 4Consolidated revenues decreased by 41% in the third quarter of 2020 compared to the prior year, reflecting lower sales prices and volumes.
- 5The company issued $2 billion in senior unsecured notes and borrowed $1 billion under a term loan facility during the nine months ended September 30, 2020, to enhance liquidity.
- 6Capital expenditures were reduced by $700 million for 2020, and operating and administrative costs were targeted for a $500 million reduction.
- 7Cash and cash equivalents stood at $1.46 billion at September 30, 2020, with approximately $5.5 billion in total committed capacity available under revolving credit facilities.