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Phillips 66 (PSX) Q4 Earnings Miss Estimate, Revenues Beat
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Phillips 66 (PSX - Free Report) has reported fourth-quarter 2022 adjusted earnings of $4 per share, missing the Zacks Consensus Estimate of $4.34. However, the bottom line improved from $2.94 per share in the year-ago quarter.
Total quarterly revenues of $40,907 million beat the Zacks Consensus Estimate of $34,302 million. The top line also improved from the year-ago quarter’s $33,568 million.
Lower-than-expected quarterly earnings can be primarily attributed to lower contributions from the Chemicals segment. The negatives were partially offset by strong refining margins worldwide.
The segment generated adjusted pre-tax quarterly earnings of $674 million, up from $634 million in the year-ago quarter. Higher contributions from transportation, and NGL and other aided the segment.
Chemicals:
It recorded adjusted pre-tax earnings of $52 million, down from $424 million in the prior-year quarter. Lower margins and volumes primarily hurt the segment.
Refining:
It reported adjusted pre-tax earnings of $1,626 million, up from $466 million in the year-ago quarter. The segment was backed by increased volumes and realized margins.
The segment’s realized refining margins worldwide improved to $19.73 per barrel from the year-ago quarter’s $11.95. The same in the Central Corridor and Atlantic Basin/Europe increased to $25.03 and $19.58 per barrel from the year-ago levels of $12.60 and $11, respectively.
In the Gulf Coast, the metric registered an improvement to $16.35 per barrel from $10.16 in the prior-year quarter. The West Coast witnessed an increase in margins from $15.80 per barrel in the year-ago quarter to $16.77 in the December-end quarter of 2022.
Marketing and Specialties
Pre-tax earnings increased to $539 million from $471 million in the year-ago quarter.
While realized marketing fuel margins in the United States increased to $2.05 per barrel from the year-ago quarter’s $1.87 per barrel, the same in the international markets increased to $9.94 from the year-ago level of $9.81.
Costs and Expenses
Total costs and expenses in the fourth quarter increased to $38,360 million from $31,941 million in the year-ago period.
Financial Condition
For the reported quarter, Phillips 66 generated $4,750 million of net cash from operations, up from $1,800 million a year ago. The company’s capital expenditure and investments totaled $713 million. It paid out dividends of $456 million in the reported quarter.
As of Dec 31, 2022, cash and cash equivalents were $6.1 billion. The company’s total liquidity was $12.8 billion. Total debt was $17.2 billion, reflecting a consolidated debt to capitalization of 34%.
Zacks Rank & Stocks to Consider
Phillips 66 currently carries a Zacks Rank #3 (Hold).
Halliburton reported a fourth-quarter 2022 adjusted net income per share of 72 cents, surpassing the Zacks Consensus Estimate of 67 cents. The outperformance reflects stronger-than-expected profit from both its divisions.
HAL is expected to see earnings growth of 43.7% in 2023. In more good news for investors, Halliburton raised its quarterly dividend by 33.3% to 16 cents per share (or 64 cents per share annualized).
RPC reported adjusted earnings of 41 cents per share in the fourth quarter, beating the Zacks Consensus Estimate of 30 cents. The strong quarterly results were backed by higher activity levels in all the service lines and rising equipment utilization.
RES is expected to see earnings growth of 67.7% in 2023. As of Dec 31, RPC had cash and cash equivalents of $126.4 million, up sequentially from $73.2 million. Nonetheless, the company managed to maintain a debt-free balance sheet.
Valero reported fourth-quarter 2022 adjusted earnings of $8.45 per share, beating the Zacks Consensus Estimate of $7.45 per share. The strong quarterly results have been driven by increased refinery throughput volumes and a higher refining margin.
Valero can benefit from the Gulf Coast export volumes as fuel demand recovery gets support from Asia economies. The Gulf Coast contributed 59.4% to the total throughput volume in the fourth quarter of 2022.
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Phillips 66 (PSX) Q4 Earnings Miss Estimate, Revenues Beat
Phillips 66 (PSX - Free Report) has reported fourth-quarter 2022 adjusted earnings of $4 per share, missing the Zacks Consensus Estimate of $4.34. However, the bottom line improved from $2.94 per share in the year-ago quarter.
Total quarterly revenues of $40,907 million beat the Zacks Consensus Estimate of $34,302 million. The top line also improved from the year-ago quarter’s $33,568 million.
Lower-than-expected quarterly earnings can be primarily attributed to lower contributions from the Chemicals segment. The negatives were partially offset by 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 $674 million, up from $634 million in the year-ago quarter. Higher contributions from transportation, and NGL and other aided the segment.
Chemicals:
It recorded adjusted pre-tax earnings of $52 million, down from $424 million in the prior-year quarter. Lower margins and volumes primarily hurt the segment.
Refining:
It reported adjusted pre-tax earnings of $1,626 million, up from $466 million in the year-ago quarter. The segment was backed by increased volumes and realized margins.
The segment’s realized refining margins worldwide improved to $19.73 per barrel from the year-ago quarter’s $11.95. The same in the Central Corridor and Atlantic Basin/Europe increased to $25.03 and $19.58 per barrel from the year-ago levels of $12.60 and $11, respectively.
In the Gulf Coast, the metric registered an improvement to $16.35 per barrel from $10.16 in the prior-year quarter. The West Coast witnessed an increase in margins from $15.80 per barrel in the year-ago quarter to $16.77 in the December-end quarter of 2022.
Marketing and Specialties
Pre-tax earnings increased to $539 million from $471 million in the year-ago quarter.
While realized marketing fuel margins in the United States increased to $2.05 per barrel from the year-ago quarter’s $1.87 per barrel, the same in the international markets increased to $9.94 from the year-ago level of $9.81.
Costs and Expenses
Total costs and expenses in the fourth quarter increased to $38,360 million from $31,941 million in the year-ago period.
Financial Condition
For the reported quarter, Phillips 66 generated $4,750 million of net cash from operations, up from $1,800 million a year ago. The company’s capital expenditure and investments totaled $713 million. It paid out dividends of $456 million in the reported quarter.
As of Dec 31, 2022, cash and cash equivalents were $6.1 billion. The company’s total liquidity was $12.8 billion. Total debt was $17.2 billion, reflecting a consolidated debt to capitalization of 34%.
Zacks Rank & Stocks to Consider
Phillips 66 currently carries a Zacks Rank #3 (Hold).
Investors interested in the energy sector might look at stocks like Halliburton Company (HAL - Free Report) and RPC Inc. (RES - Free Report) , both sporting a Zacks Rank #1 (Strong Buy), and Valero Energy Corporation (VLO - Free Report) , carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Halliburton reported a fourth-quarter 2022 adjusted net income per share of 72 cents, surpassing the Zacks Consensus Estimate of 67 cents. The outperformance reflects stronger-than-expected profit from both its divisions.
HAL is expected to see earnings growth of 43.7% in 2023. In more good news for investors, Halliburton raised its quarterly dividend by 33.3% to 16 cents per share (or 64 cents per share annualized).
RPC reported adjusted earnings of 41 cents per share in the fourth quarter, beating the Zacks Consensus Estimate of 30 cents. The strong quarterly results were backed by higher activity levels in all the service lines and rising equipment utilization.
RES is expected to see earnings growth of 67.7% in 2023. As of Dec 31, RPC had cash and cash equivalents of $126.4 million, up sequentially from $73.2 million. Nonetheless, the company managed to maintain a debt-free balance sheet.
Valero reported fourth-quarter 2022 adjusted earnings of $8.45 per share, beating the Zacks Consensus Estimate of $7.45 per share. The strong quarterly results have been driven by increased refinery throughput volumes and a higher refining margin.
Valero can benefit from the Gulf Coast export volumes as fuel demand recovery gets support from Asia economies. The Gulf Coast contributed 59.4% to the total throughput volume in the fourth quarter of 2022.