Phillips 66, the Houston-based energy company, has announced a decline in profit for the third quarter compared to the previous year. However, the company’s performance has shown improvement since last quarter.
Financial Highlights
In the third quarter, Phillips 66 recorded a profit of $2.1 billion, translating to $4.69 per share. This is a significant decrease from the profit of $5.39 billion, or $11.16 per share, reported during the same period last year. Adjusted for one-time items, the company’s earnings were $4.63 per share. Analysts polled by FactSet had anticipated earnings of $4.82 per share.
Midstream Business Performance
The midstream business of Phillips 66 reported income of $712 million for the quarter. Although this figure is down from $3.6 billion compared to last year, it shows improvement from the previous quarter’s income of $604 million. Notably, the reported figures include a $101 million gain from the sale of an investment and an additional $46 million from a change in inventory method for an acquired business.
Refining Business Performance
Income from Phillips 66’s refining business decreased to $1.71 billion from $2.91 billion recorded last year. However, this figure is higher than the $1.13 billion reported in the previous quarter. The increase in income can be attributed to higher realized margins and strong utilization.
