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Sep 30, 2020
Phillips 66 Q3 2020 Earnings Report
Reported a loss due to weak refining margins, but benefited from improved market conditions in Midstream, Chemicals and Marketing & Specialties.
Key Takeaways
Phillips 66 reported a third-quarter 2020 loss of $799 million, or $1.82 per share. Excluding special items, the company had an adjusted loss of $1 million, or $0.01 per share. The company generated operating cash flow of $491 million, or $795 million excluding working capital impacts. Improved market conditions in Midstream, Chemicals and Marketing & Specialties were captured.
Reported a third-quarter loss of $799 million or $1.82 per share; adjusted loss of $1 million or $0.01 per share
Generated operating cash flow of $491 million; $795 million excluding working capital
Captured improved market conditions in Midstream, Chemicals and Marketing & Specialties
Recently started operations of Sweeny Fracs 2 and 3
Phillips 66
Phillips 66
Phillips 66 Revenue by Segment
Revenue by Segment
Midstream earnings Revenue
CapyFin.comChemicals earnings Revenue
CapyFin.comRefining earnings Revenue
CapyFin.comMarketing & Specialties Revenue
CapyFin.comCorporate & Other Revenue
CapyFin.com Forward Guidance
Phillips 66 expects 2020 consolidated capital expenditures and investments to be $3 billion, and adjusted capital spending to be $2.9 billion, net of cash capital contributions from joint venture partners.
Positive Outlook
- Completion of the two new 150,000 BPD fractionators at its Sweeny Hub, bringing the site’s total fractionation capacity to 400,000 BPD.
- Phillips 66 Partners continued construction of the C2G Pipeline, a 16 inch ethane pipeline that will connect its Clemens Caverns storage facility to petrochemical facilities in Gregory, Texas, near Corpus Christi, Texas. The project is backed by long-term commitments and is expected to be completed in mid-2021.
- At the South Texas Gateway Terminal, which is being constructed by Buckeye Partners, L.P., the first dock and 5.1 million barrels of storage capacity have been commissioned.
- The company is adding a 200,000 BPD dock at its Beaumont Terminal, bringing the terminal’s total dock capacity to 800,000 BPD. The new dock is expected to be completed in the fourth quarter of 2020.
- CPChem announced its first U.S. commercial-scale production of polyethylene from recycled mixed-waste plastics.
Challenges Ahead
- CPChem is closely monitoring economic developments and has deferred final investment decision for its U.S. Gulf Coast project.
- Refining continued to be impacted by weak margins.
- The 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.