Phillps 66 Earnings: On Track for 2025 Targets With Strong Q4 Performance

Phillips 66 reported fourth-quarter adjusted earnings of $1.4 billion versus $1.9 billion a year ago, exceeding market expectations. A decline in refining margins from the year before was the primary culprit for the earnings decline as most of the other segments reported gains. Adjusted earnings for the refining segment fell to $797 million from $1.6 billion a year ago on a decrease in realized margins to $14.41 per barrel, from $19.73/bbl a year ago. However, the margin capture rate was an impressive 107% on a mix of favorable market conditions and commercial execution. These levels probably won’t be maintained in the near term, but Phillips 66 should see improvement over time, given projects underway to improve capture by 5% by 2025.