In the third quarter of 2021, Phillips 66’s posted good results which exceeded expectations on account of soaring refining margins.
The company’s refining unit scored an adjusted pre-tax income of USD184 million, contrasting with the USD970 million loss it recorded in the same period of 2020.
Net income was at 91 cents/share to a total of USD402 million. In the third quarter of 2020, Phillips 66 posted a loss of USD1.82/share or a total of USD799 million.
Adjusted earnings were at USD3.18/share or a total of USD1.4 billion, exceeding Refinitiv IBES’ estimate of USD1.95/share.
Realized refining margins soared by 381.5% to USD8.57/barrel. The refining crude utilization rate was at 86% with total processed inputs edging up by 12.5% year-on-year to 168.74 million bpd but dropped by 1.3% quarter-to-quarter.
Moving onwards, Phillips 66 is more optimistic as CEO Greg Garland opined that it is moving towards more of a mid-cycle earnings profile in its refining business.
However, Hurricane Ida has shut its Alliance Refinery in Louisiana which would continue for the remainder of this year. Refining utilization rate is also estimated to drop to a low 80%-range in the fourth quarter.
