We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Phillips 66 (PSX) Q2 Earnings Top Estimates, Revenues Fall Y/Y
Read MoreHide Full Article
Phillips 66 (PSX - Free Report) has reported second-quarter 2023 adjusted earnings of $3.87 per share, beating the Zacks Consensus Estimate of $3.54. The bottom line significantly declined from $6.77 per share in the year-ago quarter.
Total quarterly revenues of $35,740 million beat the Zacks Consensus Estimate of $32,126 million. However, the top line declined from the year-ago quarter’s $49,309 million.
Better-than-expected quarterly earnings can be primarily attributed to lower expenses. The positives were partially offset by declining refining margins worldwide.
The segment generated adjusted pre-tax quarterly earnings of $626 million, up from $258 million in the year-ago quarter. The metric also beat our estimate of $383 million. Higher contributions from transportation aided the segment.
Chemicals:
The unit recorded adjusted pre-tax earnings of $192 million, down from $273 million in the prior-year quarter.
Refining:
The segment reported adjusted pre-tax earnings of $1,148 million, down from $3,192 million in the year-ago quarter. The metric is also below our projection of $1,423.5 million. The segment was affected by lower realized margins. The negatives were partially offset by higher volumes and lower operating expenses.
The segment’s realized refining margins worldwide declined to $15.32 per barrel from the year-ago quarter’s $28.62. The same in the Central Corridor and Atlantic Basin/Europe declined to $22.62 and $10.94 per barrel from the year-ago levels of $26.72 and $30.39, respectively.
The West Coast witnessed a decline in margins from $33.31 per barrel in the year-ago quarter to $16.27 in the June-end quarter of 2023. In the Gulf Coast, the metric declined to $11.84 per barrel from $25.71 in the prior-year quarter.
Marketing and Specialties
Pre-tax earnings declined to $644 million from $739 million in the year-ago quarter.
While realized marketing fuel margins in the United States declined to $2.88 per barrel from the year-ago quarter’s $3.24 per barrel, the same in the international markets declined to $7.28 from the year-ago level of $8.20.
Costs and Expenses
Total costs and expenses in the second quarter declined to $33,496 million from $45,203 million in the year-ago period. The metric is slightly above our projection of $26,662 million.
Financial Condition
For the reported quarter, Phillips 66 generated $955 million of net cash from operations, down from $1,783 million a year ago. The company’s capital expenditure and investments totaled $551 million. It paid out dividends of $474 million in the reported quarter.
As of Jun 30, 2023, cash and cash equivalents were $3 billion. Total debt was $19.9 billion, reflecting a consolidated debt to capitalization of 39%.
Zacks Rank & Stocks to Consider
Phillips 66 currently carries a Zacks Rank #3 (Hold).
One of the leading suppliers of integrated technology solutions, Oceaneering boasts an impressive portfolio of diversified products and services.
Oceaneering has witnessed upward earnings estimate revisions for 2023 and 2024 in the past 60 days. The consensus estimate for OII’s 2023 and 2024 earnings per share is pegged at $1 and $1.34, respectively.
Global Partners is a leading operator of gasoline stations and convenience stores. Over the past 30 days, GLP has witnessed upward earnings estimate revisions for 2023 and 2024, respectively.
The Zacks Consensus Estimate for Global Partners’ 2023 and 2024 earnings per share is pegged at $3.85 and $3.61, respectively. GLP currently has a Zacks Style Score of A for Value.
Evolution Petroleum is an independent energy company. EPM has a Zacks Style Score of A for Growth.
Evolution Petroleum has witnessed upward earnings estimate revisions for 2023 and 2024 in the past 60 days. The consensus estimate for EPM’s 2023 and 2024 earnings per share is pegged at $1.11 and $1.08, respectively.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Phillips 66 (PSX) Q2 Earnings Top Estimates, Revenues Fall Y/Y
Phillips 66 (PSX - Free Report) has reported second-quarter 2023 adjusted earnings of $3.87 per share, beating the Zacks Consensus Estimate of $3.54. The bottom line significantly declined from $6.77 per share in the year-ago quarter.
Total quarterly revenues of $35,740 million beat the Zacks Consensus Estimate of $32,126 million. However, the top line declined from the year-ago quarter’s $49,309 million.
Better-than-expected quarterly earnings can be primarily attributed to lower expenses. The positives were partially offset by declining refining margins worldwide.
Phillips 66 Price, Consensus and EPS Surprise
Phillips 66 price-consensus-eps-surprise-chart | Phillips 66 Quote
Segmental Results
Midstream:
The segment generated adjusted pre-tax quarterly earnings of $626 million, up from $258 million in the year-ago quarter. The metric also beat our estimate of $383 million. Higher contributions from transportation aided the segment.
Chemicals:
The unit recorded adjusted pre-tax earnings of $192 million, down from $273 million in the prior-year quarter.
Refining:
The segment reported adjusted pre-tax earnings of $1,148 million, down from $3,192 million in the year-ago quarter. The metric is also below our projection of $1,423.5 million. The segment was affected by lower realized margins. The negatives were partially offset by higher volumes and lower operating expenses.
The segment’s realized refining margins worldwide declined to $15.32 per barrel from the year-ago quarter’s $28.62. The same in the Central Corridor and Atlantic Basin/Europe declined to $22.62 and $10.94 per barrel from the year-ago levels of $26.72 and $30.39, respectively.
The West Coast witnessed a decline in margins from $33.31 per barrel in the year-ago quarter to $16.27 in the June-end quarter of 2023. In the Gulf Coast, the metric declined to $11.84 per barrel from $25.71 in the prior-year quarter.
Marketing and Specialties
Pre-tax earnings declined to $644 million from $739 million in the year-ago quarter.
While realized marketing fuel margins in the United States declined to $2.88 per barrel from the year-ago quarter’s $3.24 per barrel, the same in the international markets declined to $7.28 from the year-ago level of $8.20.
Costs and Expenses
Total costs and expenses in the second quarter declined to $33,496 million from $45,203 million in the year-ago period. The metric is slightly above our projection of $26,662 million.
Financial Condition
For the reported quarter, Phillips 66 generated $955 million of net cash from operations, down from $1,783 million a year ago. The company’s capital expenditure and investments totaled $551 million. It paid out dividends of $474 million in the reported quarter.
As of Jun 30, 2023, cash and cash equivalents were $3 billion. Total debt was $19.9 billion, reflecting a consolidated debt to capitalization of 39%.
Zacks Rank & Stocks to Consider
Phillips 66 currently carries a Zacks Rank #3 (Hold).
Some better-ranked players in the energy sector are Oceaneering International, Inc. (OII - Free Report) , Global Partners (GLP - Free Report) and Evolution Petroleum Corporation (EPM - Free Report) , currently sporting a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
One of the leading suppliers of integrated technology solutions, Oceaneering boasts an impressive portfolio of diversified products and services.
Oceaneering has witnessed upward earnings estimate revisions for 2023 and 2024 in the past 60 days. The consensus estimate for OII’s 2023 and 2024 earnings per share is pegged at $1 and $1.34, respectively.
Global Partners is a leading operator of gasoline stations and convenience stores. Over the past 30 days, GLP has witnessed upward earnings estimate revisions for 2023 and 2024, respectively.
The Zacks Consensus Estimate for Global Partners’ 2023 and 2024 earnings per share is pegged at $3.85 and $3.61, respectively. GLP currently has a Zacks Style Score of A for Value.
Evolution Petroleum is an independent energy company. EPM has a Zacks Style Score of A for Growth.
Evolution Petroleum has witnessed upward earnings estimate revisions for 2023 and 2024 in the past 60 days. The consensus estimate for EPM’s 2023 and 2024 earnings per share is pegged at $1.11 and $1.08, respectively.