Summary
Phillips 66 (PSX) reported a net income of $296 million for the second quarter of 2021, a significant improvement from the $141 million net loss in the same period of 2020. This turnaround was driven by a broad economic recovery, leading to higher refining margins, increased marketing fuel margins and sales volumes, and improved equity earnings from affiliates, particularly in the Chemicals segment. For the first six months of 2021, the company reported a net loss of $358 million, which is a substantial reduction from the $2,637 million net loss in the first half of 2020. This improvement was largely due to a significant decrease in impairment charges, with a $198 million impairment in 2021 compared to $3,006 million in 2020. Despite the improved net results, the company continues to navigate challenges in the Refining segment, which incurred a pre-tax loss of $729 million in Q2 2021 and $1,769 million year-to-date, though this represents an improvement from the prior year's comparable periods. The company generated $2.0 billion in cash from operating activities for the first six months of 2021, boosted by a $1.1 billion U.S. federal income tax refund.
Financial Highlights
45 data points| Revenue | $27.00B |
| Cost of Revenue | $25.22B |
| Gross Profit | $1.78B |
| SG&A Expenses | $433.00M |
| Operating Income | -$358.00M |
| Net Income | $296.00M |
| EPS (Basic) | $0.66 |
| EPS (Diluted) | $0.66 |
| Shares Outstanding (Basic) | 439.94M |
| Shares Outstanding (Diluted) | 440.40M |
Key Highlights
- 1Positive Net Income Turnaround: Phillips 66 shifted from a net loss of $141 million in Q2 2020 to a net income of $296 million in Q2 2021, indicating a strong recovery.
- 2Reduced Year-to-Date Losses: The net loss for the first six months of 2021 was $358 million, a significant improvement from $2,637 million in the same period of 2020, primarily due to lower impairment charges.
- 3Strong Cash Flow Generation: The company generated $2.0 billion in cash from operating activities in the first half of 2021, aided by a substantial $1.1 billion U.S. federal income tax refund.
- 4Improved Refining and Marketing Margins: Higher commodity prices and increased demand led to improved refining and marketing fuel margins, contributing to the overall positive financial performance.
- 5Chemicals Segment Strength: The Chemicals segment, primarily through its equity investment in CPChem, showed robust performance with increased margins driven by strong demand and tight supplies.
- 6Strategic Capital Allocation: The company invested $711 million in capital expenditures and investments in the first half of 2021, while also returning capital to shareholders through $788 million in dividend payments.
- 7Debt Management: Total debt remained relatively stable at $15.4 billion, with a debt-to-capital ratio of 43%, indicating a manageable leverage position.