In This Article:
Phillips 66 PSX reported first-quarter 2025 adjusted loss of 90 cents per share, wider than the Zacks Consensus Estimate of a loss of 77 cents. The bottom line declined from the year-ago quarter’s earnings of $1.90.
Total quarterly revenues of $32 billion beat the Zacks Consensus Estimate of $31 billion. However, the top line declined from the year-ago level of $36 billion.
Weak quarterly earnings can be attributed to lower refining volumes and a drop in realized refining margins worldwide. However, higher contribution from the Midstream segment due to increased NGL transportation volumes, partially offset the negatives.
Phillips 66 Price, Consensus and EPS Surprise
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Segmental Results
Midstream:
The segment generated adjusted pre-tax quarterly earnings of $683 million, up from $613 million in the year-ago quarter. The reported figure surpassed our estimate of $439.3 million. The segment was aided by higher margins fueled by gathering and processing results and higher NGL transportation volumes compared to the prior-year quarter’s level.
Chemicals:
The unit recorded adjusted pre-tax earnings of $113 million, down from $205 million in the prior-year quarter. The reported figure also missed our estimate of $168.4 million.
Refining:
The segment reported an adjusted pre-tax loss of $937 million against adjusted pre-tax earnings of $313 million in the year-ago quarter. The reported figure also missed our projection of a loss of $254.3 million. The deterioration was primarily due to a decline in refining volumes. Higher costs associated with planned turnaround activity also affected the segment.
Refining’s realized refining margins worldwide declined to $6.81 per barrel from the year-ago quarter’s $11.01, and the same in the Central Corridor and Atlantic Basin/Europe dropped to $8.29 and $7.08 per barrel, respectively, from the year-ago quarter’s $12.56 and $9.70.
The West Coast’s margins declined to $7.12 per barrel from $10.60 in the year-ago quarter. In the Gulf Coast, the metric declined to $4.43 per barrel from $10.95 a year ago.
Marketing & Specialties:
Adjusted pre-tax earnings declined to $265 million from $307 million in the year-ago quarter. The reported figure beat our projection of $200.4 million.
Realized marketing fuel margins in the United States declined to $1.36 per barrel from the year-ago quarter’s $1.60, and the same in the international markets declined marginally to $4.87 from $4.88 a year ago.
Renewable Fuels:
The segment reported an adjusted pre-tax loss of $185 million compared with a loss of $55 million in the year-ago quarter. Our model projected adjusted pre-tax earnings of $80.3 million. The segment was affected by a switch from blenders tax credits to production tax credits. Furthermore, weak results from the international markets and inventory impact contributed to the same.