Phillips 66 has reported $973 million in adjusted net income for the second quarter, bouncing back from a $368 million adjusted net loss for the prior three-month period partly due to an increase in refining margins and volumes.
The adjusted earnings per share of $2.38, assuming dilution, beat the Zacks Consensus Estimate of $1.66. Houston, Texas-based Phillips 66 declared a quarterly dividend of $1.2 per share, payable September 2 to shareholders of record as of the close of business on August 19.
Net profit before adjustment for nonrecurring items was $877 million, up from $487 million for Q1 2025.
Q2 2025 results were boosted by Phillips 66’s acquisition of EPIC assets, completed early in the quarter and rebranded as Coastal Bend.
In the refining segment, crude capacity utilization climbed 18 percentage points to 98 percent quarter-on-quarter. The realized margin per barrel was $11.25, up $4.44.
Refining adjusted pre-tax income was $392 million, compared to an adjusted pre-tax loss of $937 million for Q1 2025. The increase was “mainly due to higher realized margins resulting from improved market crack spreads, as well as higher volumes and lower costs”, Phillips 66 said.
Chair and chief executive Mark Lashier said, “During the quarter, refining ran at the highest utilization since 2018, achieved its lowest cost per barrel since 2021, strong market capture and record year-to-date clean product yield”.
Meanwhile pipeline throughput increased 252,000 barrels per day (bpd) to 956,000 bpd, while chemicals capacity utilization fell eight percentage points to 92 percent.
Midstream adjusted pre-tax income came at $731 million, up from $683 million for Q1 2025 “mainly due to higher volumes, largely driven by the acquisition of Coastal Bend, partially offset by seasonal maintenance expense and property taxes”, Phillips 66 said.
Marketing and specialties adjusted pre-tax income was $660 million, up from $265 million for Q1 2025 “primarily due to higher margins and volumes”.
Chemicals pre-tax and adjusted pre-tax income landed at $20 million, down from $113 million for Q1 2025 “mainly due to lower margins driven by lower sales prices”.
Meanwhile the renewable fuels segment registered a pre-tax and adjusted pre-tax loss of $133 million, better than a result of -$185 million for Q1 2025 “primarily due to higher realized margins including inventory impacts, as well as increased credits”.
Adjusted earnings before interest, taxes, depreciation and amortization totaled $2.5 billion, up from $736 million for Q1 2025.
Cash flow from operations was $845 million, up from $187 million for Q1 2025. Excluding working capital, cash flow from operations was $1.92 billion, up from $259 million for Q1 2025.
Phillips 66 paid $906 million in return of capital to shareholders in Q2 2025, consisting of $487 million in dividends and $419 million in buybacks.
It ended the quarter with $1.14 billion in cash and cash equivalents including $92 million classified within assets held for sale.
Debt stood at $20.94 billion. Net debt-to-capital ratio was 41 percent.
To contact the author, email jov.onsat@rigzone.com
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