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Mar 31, 2021
Phillips 66 Q1 2021 Earnings Report
Reported a loss impacted by severe winter storms and the ongoing COVID-19 pandemic.
Key Takeaways
Phillips 66 reported a first-quarter 2021 loss of $654 million, or $1.49 per share, compared to a loss of $539 million in the fourth quarter of 2020. The adjusted loss was $509 million, or $1.16 per share, compared to an adjusted loss of $507 million in the fourth quarter. The company's financial and operating performance was impacted by severe winter storms, resulting in lower utilization and higher costs across its businesses.
First-quarter results reflected the impact of severe winter storms and the ongoing COVID-19 pandemic.
Renewable diesel production commenced at the San Francisco Refinery.
The South Texas Gateway Terminal was completed, and construction of the C2G Pipeline advanced.
A disciplined approach to capital allocation was maintained, including debt repayment.
Phillips 66
Phillips 66
Forward Guidance
Phillips 66 plans to resume construction of the fourth fractionator in the second half of 2021 and expects a final investment decision for its U.S. Gulf Coast project in 2022.
Positive Outlook
- The South Texas Gateway Terminal commissioned additional storage capacity.
- Construction of the C2G Pipeline continued.
- Plans to resume construction of the fourth fractionator in the second half of 2021.
- CPChem is advancing optimization and debottlenecking opportunities.
- Phillips 66 is advancing its plans at the San Francisco Refinery to meet the growing demand for renewable fuels.
Challenges Ahead
- Continuing effects of the COVID-19 pandemic and its negative impact on commercial activity and demand for refined petroleum products
- The inability to timely obtain or maintain permits necessary for capital projects
- Changes to worldwide government policies relating to renewable fuels and greenhouse gas emissions that adversely affect programs like the renewable fuel standards program, low carbon fuel standards and tax credits for biofuels
- Fluctuations in NGL, crude oil, and natural gas prices, and petrochemical and refining margins
- Unexpected changes in costs for constructing, modifying or operating our facilities