Phillips 66's Profit Misses on Lower Margins

Posted by Joseph Keefe

U.S. independent oil refiner Phillips 66 posted a lower-than-expected quarterly profit as margins were squeezed by the narrowing gap between U.S. crude prices and globally-traded Brent crude, to which prices of refined products are tied.

The company's shares were down 1.3 percent at $80 in light premarket trading on Friday.

Phillips posted an adjusted loss from its refining business of $95 million in the fourth quarter ended Dec. 31, compared with adjusted earnings of $376 million a year earlier.

Refining margins were also hurt by higher costs and lower volumes due to maintenance-related activities, Phillips said.

The company's worldwide crude utilization rate was 93 percent, down from 97 percent in the third quarter.

Consolidated earnings fell to $163 million, or 31 cents per share, in the quarter from $650 million, or $1.20 per share, a year earlier.

The company reported adjusted earnings of 16 cents per share, well below analysts' average estimate of 40 cents, according to Thomson Reuters I/B/E/S. (Reporting by Arathy S Nair

Feb 3, 2017

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