Summary
Phillips 66 reported a net income of $402 million for the third quarter of 2021, a significant improvement from the $799 million net loss in the same period of 2020. This turnaround was driven by improved refining margins, higher equity earnings from its chemical joint venture (CPChem), and an unrealized gain from a strategic investment in battery materials company NOVONIX. For the nine months ended September 30, 2021, the company reported a net income of $44 million, a substantial improvement from the $3.4 billion net loss in the prior year. Key drivers for this improvement included lower impairment charges, better refining margins, and increased equity earnings from CPChem. The company also generated strong operating cash flow of $4.2 billion for the nine-month period, enabling it to fund capital expenditures, repay debt, and pay dividends. A significant event is the announced definitive agreement to acquire all publicly held common units of Phillips 66 Partners LP, expected to close in the first quarter of 2022.
Financial Highlights
45 data points| Revenue | $30.24B |
| Cost of Revenue | $27.53B |
| Gross Profit | $2.71B |
| SG&A Expenses | $424.00M |
| Operating Income | $44.00M |
| Net Income | $402.00M |
| EPS (Basic) | $0.91 |
| EPS (Diluted) | $0.91 |
| Shares Outstanding (Basic) | 440.19M |
| Shares Outstanding (Diluted) | 440.37M |
Key Highlights
- 1Achieved a net income of $402 million in Q3 2021, a significant turnaround from a net loss of $799 million in Q3 2020.
- 2Generated $4.2 billion in cash from operating activities for the nine months ended September 30, 2021, a substantial increase from $1.5 billion in the same period of 2020.
- 3Announced a definitive agreement to acquire Phillips 66 Partners LP in an all-stock transaction, expected to close in Q1 2022.
- 4Recorded a $1.3 billion impairment charge in the Refining segment related to damages at the Alliance Refinery from Hurricane Ida.
- 5Made a strategic investment of $150 million for a 16% ownership interest in NOVONIX Limited, a company developing materials for lithium-ion batteries.
- 6Total revenues increased to $30.2 billion in Q3 2021 from $15.9 billion in Q3 2020, reflecting higher commodity prices and increased volumes across segments.
- 7The company reiterated its commitment to sustainability by announcing greenhouse gas emissions reduction targets for 2030.