Summary
Phillips 66 reported net income attributable to Phillips 66 of $1.7 billion, or $3.72 per diluted share, for the second quarter of 2023. This represents a decrease compared to the $3.2 billion, or $6.53 per diluted share, reported in the same period of the prior year. The decline in profitability was primarily driven by lower realized refining margins, influenced by a decrease in market crack spreads and lower crude oil prices. While overall revenues decreased due to lower commodity prices, the Midstream segment showed improved performance, benefiting from the consolidation of DCP Midstream assets and increased economic interest following recent mergers. The company generated $1.0 billion in cash from operating activities during the quarter, ending with $3.0 billion in cash and cash equivalents. Significant uses of cash included $4.0 billion for repurchasing noncontrolling interests in DCP LP, $1.3 billion for common stock repurchases, and $474 million in common stock dividends. Phillips 66 continues to progress its multi-year business transformation aimed at improving its cost structure, with expected achievement of targeted run-rate cost reductions by year-end 2023.
Financial Highlights
44 data points| Revenue | $35.09B |
| Cost of Revenue | $30.57B |
| Gross Profit | $4.52B |
| SG&A Expenses | $593.00M |
| Operating Income | $3.66B |
| Net Income | $1.70B |
| EPS (Basic) | $3.73 |
| EPS (Diluted) | $3.72 |
| Shares Outstanding (Basic) | 454.45M |
| Shares Outstanding (Diluted) | 456.17M |
Key Highlights
- 1Net income attributable to Phillips 66 was $1.7 billion ($3.72/diluted share) for Q2 2023, down from $3.2 billion ($6.53/diluted share) in Q2 2022.
- 2Total revenues decreased to $35.1 billion in Q2 2023 from $48.6 billion in Q2 2022, primarily due to lower commodity prices.
- 3Refining segment income before taxes significantly decreased to $1.1 billion in Q2 2023 from $3.1 billion in Q2 2022, driven by lower realized refining margins and market crack spreads.
- 4Midstream segment income before taxes increased to $604 million in Q2 2023 from $258 million in Q2 2022, supported by consolidation of DCP Midstream assets and increased economic interest.
- 5Operating cash flow for Q2 2023 was $1.0 billion, compared to $1.8 billion in Q2 2022.
- 6The company repurchased $4.0 billion of noncontrolling interests in DCP LP and $1.3 billion of common stock during Q2 2023.
- 7Phillips 66 continues to progress its business transformation initiative, targeting at least $800 million in sustainable run-rate cost reductions by the end of 2023.