On a GAAP basis, the company posted EPS of $2.51, compared with EPS of $1.65 in the third quarter of 2011. Phillips 66 was spun off from ConocoPhillips (NYSE: COP) in May of this year.
The company’s CEO said:
We had a solid quarter as a result of achieving strong utilization rates and running more advantaged feedstocks. We continue to focus on safe and reliable operations throughout the company. Our operating cash flow enabled us to return more than $235 million of capital to our shareholders.
Adjusted earnings rose by $568 million compared with the third quarter a year ago, due to better refining margins. Phillips 66 claimed an average margin of $17.05 a barrel, but the margin soared to $31.83 a barrel in the company’s mid-America region. Overall, the company enjoyed a gain of 92% to 96% refinery utilization rate in the quarter, even including a shutdown due to Hurricane Isaac.
The company’s midstream segment posted a net loss of $77 million, including a $133 million impairment charge on the Rockies Express Pipeline. The company said it plans to go ahead with an investment in natural gas liquids pipelines along with Spectra Energy Corp. (NYSE: SE) and DCP Midstream Partners L.P. (NYSE: DCP). The total investment in the pipelines is about $700 to $800 million.
Phillips 66 is expected to post fourth quarter EPS of $1.58 on revenues of $40.78 billion. For the full-year EPS is forecast at $7.12 on revenues of $188.22 billion.
The year-over-year revenue decrease is likely due to a drop in barrels refined in the company’s Atlantic Basin/Europe segment. In 2011, input totaled 768,000 barrels a day, compared with 625,000 barrels a day this year. Worldwide, total input fell from 2.39 million barrels a day to 2.29 million barrels a day.
The company’s shares are trading this morning at $47.87 in a 52-week range of $28.75 to $48.39. The consensus target price for the shares was around $54.80 before today’s report.
Paul Ausick
100 Million Americans Are Missing This Crucial Retirement Tool
The thought of burdening your family with a financial disaster is most Americans’ nightmare. However, recent studies show that over 100 million Americans still don’t have proper life insurance in the event they pass away.
Life insurance can bring peace of mind – ensuring your loved ones are safeguarded against unforeseen expenses and debts. With premiums often lower than expected and a variety of plans tailored to different life stages and health conditions, securing a policy is more accessible than ever.
A quick, no-obligation quote can provide valuable insight into what’s available and what might best suit your family’s needs. Life insurance is a simple step you can take today to help secure peace of mind for your loved ones tomorrow.
Click here to learn how to get a quote in just a few minutes.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.