Summary
Phillips 66 reported a strong second quarter and first half of 2022, with net income attributable to Phillips 66 reaching $3.2 billion for the quarter and $3.7 billion for the six-month period. This represents a significant turnaround from the net loss of $358 million reported for the same period in 2021. The substantial improvement is primarily attributed to robust performance in the Refining segment, driven by significantly wider market crack spreads, and strong results in the Marketing and Specialties segment, benefiting from higher marketing fuel margins. Despite a challenging environment marked by the ongoing conflict in Ukraine and inflationary pressures, the company successfully navigated increased commodity prices. The successful completion of the merger with Phillips 66 Partners LP in March 2022 also contributed to operational and financial efficiencies. Phillips 66 generated substantial operating cash flow and is actively managing its debt levels, demonstrating a solid financial position and a focus on shareholder returns through dividends and share repurchases.
Financial Highlights
45 data points| Revenue | $48.58B |
| Cost of Revenue | $42.65B |
| Gross Profit | $5.93B |
| SG&A Expenses | $488.00M |
| Operating Income | $3.75B |
| Net Income | $3.17B |
| EPS (Basic) | $6.55 |
| EPS (Diluted) | $6.53 |
| Shares Outstanding (Basic) | 483.09M |
| Shares Outstanding (Diluted) | 485.04M |
Key Highlights
- 1Net income attributable to Phillips 66 surged to $3.17 billion in Q2 2022, a dramatic increase from $296 million in Q2 2021, and $3.75 billion for the six months ended June 30, 2022, compared to a loss of $358 million for the same period in 2021.
- 2The Refining segment was the primary driver of improved profitability, with income before taxes reaching $3.04 billion in Q2 2022, a significant improvement from a loss of $729 million in Q2 2021, fueled by widening market crack spreads.
- 3Marketing and Specialties also showed strong performance, with income before taxes at $765 million in Q2 2022, up from $476 million in Q2 2021, driven by higher marketing fuel margins.
- 4The company successfully repaid $1.5 billion in debt during the first six months of 2022 and ended the quarter with $2.8 billion in cash and cash equivalents and $5.0 billion available under its revolving credit facility.
- 5Phillips 66 completed the merger with Phillips 66 Partners LP on March 9, 2022, making it a wholly owned subsidiary.
- 6The company resumed its share repurchase program in Q2 2022, repurchasing 700,145 shares for approximately $66 million.
- 7The Midstream segment saw a slight decrease in income before taxes to $292 million in Q2 2022 from $312 million in Q2 2021, impacted by an unrealized loss on the NOVONIX investment, though transportation volumes and equity earnings from DCP Midstream remained strong.