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Dec 31, 2019

Phillips 66 Q4 2019 Earnings Report

Phillips 66 reported fourth-quarter earnings, with adjusted earnings of $689 million.

Key Takeaways

Phillips 66 announced fourth-quarter earnings of $736 million, or $1.64 per share, compared to $712 million in the third quarter. Adjusted earnings were $689 million, or $1.54 per share. The company returned $810 million to shareholders through dividends and share repurchases during the quarter.

Returned $810 million to shareholders through dividends and share repurchases

Commenced initial operations on the Gray Oak Pipeline

Operated at 97% O&P utilization in Chemicals

Achieved 97% utilization in Refining

Total Revenue
$29.6B
Previous year: $29.8B
-0.8%
EPS
$1.54
Previous year: $4.87
-68.4%
Refinery Utilization
97%
O&P utilization in Chemicals
97%
Gross Profit
$2.67B
Previous year: $4.1B
-34.9%
Cash and Equivalents
$1.6B
Previous year: $3.02B
-47.0%
Total Assets
$59B
Previous year: $54.3B
+8.7%

Phillips 66

Phillips 66

Phillips 66 Revenue by Segment

Forward Guidance

Phillips 66 is focused on operating excellence, executing growth projects, enhancing returns on existing assets, and exercising disciplined capital allocation. They are committed to continued strong shareholder distributions through a secure, growing, competitive dividend, and repurchasing shares when they trade below intrinsic value.

Positive Outlook

  • Initial startup of the Gray Oak Pipeline
  • Progressing the Sweeny Hub expansion
  • Progressing the Red Oak Pipeline
  • Progressing the Liberty Pipeline
  • Upgrading a fluid catalytic cracking (FCC) unit at the Sweeny Refinery

Challenges Ahead

  • Challenging market environment
  • Turnaround activity impacted financial results
  • Lower propane and butane trading results
  • Inventory impacts
  • Lower finished lubricant margins

Revenue & Expenses

Visualization of income flow from segment revenue to net income