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Phillips 66 (PSX) Q2 Earnings Beat on Higher Refining Margins
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Phillips 66 (PSX - Free Report) has reported second-quarter 2022 adjusted earnings per share of $6.77, comfortably beating the Zacks Consensus Estimate of $5.92. The bottom line also improved from 74 cents per share in the year-ago quarter.
Total quarterly revenues of $49,309 million beat the Zacks Consensus Estimate of $34,366 million. The top line also improved from the year-ago quarter’s $27,885 million.
The strong quarterly results can be attributed to strong refining margins worldwide.
The segment generated adjusted pre-tax quarterly earnings of $292 million, down from $316 million in the year-ago quarter. Lower contributions from transportation hurt the segment.
Chemicals:
It recorded adjusted pre-tax earnings of $273 million, down from $657 million in the prior-year quarter. Lower contributions from the olefins and polyolefins businesses primarily hurt the segment.
Refining:
It reported adjusted pre-tax earnings of $3,132 million against the year-ago loss of $706 million. The segment was backed by increased volumes and realized margins.
The segment’s realized refining margins worldwide improved to $28.31 per barrel from the year-ago quarter’s $3.92. The same in the Central Corridor and Atlantic Basin/Europe increased to $26.72 and $30.39 per barrel from the year-ago levels of $6.40 and $4.63, respectively.
In the Gulf Coast, the metric registered an improvement to $24.80 per barrel from $2.10 in the prior-year quarter. The West Coast witnessed an increase in margins from $3.37 per barrel in the year-ago quarter to $33.13 in the June-end quarter of 2022.
Marketing and Specialties
Pre-tax earnings increased to $765 million from $479 million in the year-ago quarter.
While realized marketing fuel margins in the United States increased to $3.24 per barrel from the year-ago quarter’s $2.62 per barrel, the same in the international markets increased to $8.20 from the year-ago level of $2.89.
Costs and Expenses
Total costs and expenses in the second quarter increased to $45,203 million from $27,449 million in the year-ago period.
Financial Condition
For the reported quarter, Phillips 66 generated $1,783 million of net cash from operations, up from $1,743 million a year ago. Its capital expenditure and investments totaled $376 million. It paid out dividends of $467 million in the reported quarter.
As of Jun 30, 2022, cash and cash equivalents were $2.8 billion. The company’s total liquidity was $7.8 billion. Consolidated debt was $13 billion, reflecting a debt to capitalization of 35%.
Valero Energy Corporation (VLO - Free Report) reported second-quarter 2022 adjusted earnings of $11.36 per share, comfortably beating the Zacks Consensus Estimate of $9.7 per share. The strong quarterly results were driven by increased refinery throughput volumes and a higher refining margin.
Valero has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days. The company currently has a Zacks Style Score of A for Growth, and B for Value and Momentum. Valero is expected to see earnings growth of 774% in 2022.
Hess Corporation (HES - Free Report) reported second-quarter 2022 earnings per share of $2.15, beating the Zacks Consensus Estimate of $2.07. The strong quarterly results were driven by higher realizations of commodity prices.
Hess has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days. The company currently has a Zacks Style Score of B for Growth and Momentum. Hess is expected to see earnings growth of 329.2% in 2022.
Shell plc (SHEL - Free Report) reported second-quarter earnings per ADS (on a current cost of supplies basis, excluding items — the market’s preferred measure) of $3.06. The bottom line beat the Zacks Consensus Estimate of $2.91 due to stronger commodity prices and refining margins.
Shell has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days. The company currently has a Zacks Style Score of A for Value, Growth and Momentum. Shell is expected to see earnings growth of 124.7% in 2022.
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Phillips 66 (PSX) Q2 Earnings Beat on Higher Refining Margins
Phillips 66 (PSX - Free Report) has reported second-quarter 2022 adjusted earnings per share of $6.77, comfortably beating the Zacks Consensus Estimate of $5.92. The bottom line also improved from 74 cents per share in the year-ago quarter.
Total quarterly revenues of $49,309 million beat the Zacks Consensus Estimate of $34,366 million. The top line also improved from the year-ago quarter’s $27,885 million.
The strong quarterly results can be attributed to strong 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 $292 million, down from $316 million in the year-ago quarter. Lower contributions from transportation hurt the segment.
Chemicals:
It recorded adjusted pre-tax earnings of $273 million, down from $657 million in the prior-year quarter. Lower contributions from the olefins and polyolefins businesses primarily hurt the segment.
Refining:
It reported adjusted pre-tax earnings of $3,132 million against the year-ago loss of $706 million. The segment was backed by increased volumes and realized margins.
The segment’s realized refining margins worldwide improved to $28.31 per barrel from the year-ago quarter’s $3.92. The same in the Central Corridor and Atlantic Basin/Europe increased to $26.72 and $30.39 per barrel from the year-ago levels of $6.40 and $4.63, respectively.
In the Gulf Coast, the metric registered an improvement to $24.80 per barrel from $2.10 in the prior-year quarter. The West Coast witnessed an increase in margins from $3.37 per barrel in the year-ago quarter to $33.13 in the June-end quarter of 2022.
Marketing and Specialties
Pre-tax earnings increased to $765 million from $479 million in the year-ago quarter.
While realized marketing fuel margins in the United States increased to $3.24 per barrel from the year-ago quarter’s $2.62 per barrel, the same in the international markets increased to $8.20 from the year-ago level of $2.89.
Costs and Expenses
Total costs and expenses in the second quarter increased to $45,203 million from $27,449 million in the year-ago period.
Financial Condition
For the reported quarter, Phillips 66 generated $1,783 million of net cash from operations, up from $1,743 million a year ago. Its capital expenditure and investments totaled $376 million. It paid out dividends of $467 million in the reported quarter.
As of Jun 30, 2022, cash and cash equivalents were $2.8 billion. The company’s total liquidity was $7.8 billion. Consolidated debt was $13 billion, reflecting a debt to capitalization of 35%.
Zacks Rank
Phillips 66 currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings Snapshot of Other Energy Players
Valero Energy Corporation (VLO - Free Report) reported second-quarter 2022 adjusted earnings of $11.36 per share, comfortably beating the Zacks Consensus Estimate of $9.7 per share. The strong quarterly results were driven by increased refinery throughput volumes and a higher refining margin.
Valero has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days. The company currently has a Zacks Style Score of A for Growth, and B for Value and Momentum. Valero is expected to see earnings growth of 774% in 2022.
Hess Corporation (HES - Free Report) reported second-quarter 2022 earnings per share of $2.15, beating the Zacks Consensus Estimate of $2.07. The strong quarterly results were driven by higher realizations of commodity prices.
Hess has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days. The company currently has a Zacks Style Score of B for Growth and Momentum. Hess is expected to see earnings growth of 329.2% in 2022.
Shell plc (SHEL - Free Report) reported second-quarter earnings per ADS (on a current cost of supplies basis, excluding items — the market’s preferred measure) of $3.06. The bottom line beat the Zacks Consensus Estimate of $2.91 due to stronger commodity prices and refining margins.
Shell has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days. The company currently has a Zacks Style Score of A for Value, Growth and Momentum. Shell is expected to see earnings growth of 124.7% in 2022.