Phillips 66 Posts Wider-Than-Expected Q1 Loss on Lower Refining Volumes

Core Viewpoint - Phillips 66 reported a wider-than-expected adjusted loss in Q1 2025, with total revenues declining from the previous year, primarily due to lower refining volumes and margins [1][2]. Financial Performance - The adjusted loss per share was 90 cents, compared to a consensus estimate of a 77-cent loss, and a decline from earnings of $1.90 in the same quarter last year [1]. - Total quarterly revenues were$32 billion, exceeding the consensus estimate of $31 billion but down from$36 billion year-over-year [1]. Segmental Results - Midstream: Adjusted pre-tax earnings increased to $683 million from$613 million year-over-year, surpassing estimates due to higher margins and NGL transportation volumes [3]. - Chemicals: Adjusted pre-tax earnings fell to $113 million from$205 million in the prior-year quarter, missing estimates [4]. - Refining: Reported an adjusted pre-tax loss of $937 million, a significant decline from earnings of$313 million in the previous year, primarily due to lower refining volumes and higher turnaround costs [5]. - Marketing & Specialties: Adjusted pre-tax earnings decreased to $265 million from$307 million, but exceeded projections [7]. - Renewable Fuels: Reported an adjusted pre-tax loss of $185 million, worsening from a loss of$55 million in the prior-year quarter, impacted by changes in tax credits and weak international results [8]. Refining Margins - Realized refining margins dropped to $6.81 per barrel from$11.01 year-over-year, with declines noted across various regions including the Central Corridor and Gulf Coast [6]. Costs and Expenses - Total costs and expenses decreased to $31.1 billion from$35.5 billion in the previous year, better than projections [9]. Financial Condition - The company generated $187 million in net cash from operations, an improvement from a net cash outflow of$236 million in the prior year [10]. - Capital expenditures totaled $423 million, with dividends paid out amounting to$469 million [10]. - As of March 31, 2025, cash and cash equivalents stood at $1.5 billion, with total debt at$18.8 billion, reflecting a debt-to-capitalization ratio of 40% [10].