MOSCOW (MRC) -- Phillips 66, an energy manufacturing and logistics company, announces third-quarter earnings of USD1,578 million, compared with earnings of USD1,012 million in the second quarter of 2015. Adjusted earnings were USD1,647 million, an increase of USD645 million from the last quarter, said the company in its press release.
Phillips 66's Midstream third-quarter adjusted earnings were USD91 million, an increase of USD43 million from the second quarter.
Phillips 66’s Transportation business generated earnings of USD77 million during the third quarter, an increase of USD12 million from the second quarter. Improved earnings were due to lower operating costs and increased equity earnings primarily driven by higher volumes.
Adjusted earnings from the NGL business were USD32 million for the third quarter. The USD24 million increase from the prior quarter was largely related to higher realized margins, as well as inventory gains.
For the third quarter of 2015, the company’s equity investment in DCP Midstream, LLC (DCP Midstream) had an adjusted loss of USD18 million, compared with a USD25 million adjusted loss in the prior quarter. DCP Midstream's improved results were primarily due to higher natural gas and natural gas liquids marketing margins, as well as the second-quarter loss on the sale of its interest in the Benedum gas processing plant, partially offset by lower commodity prices.
The Chemicals segment reflects Phillips 66's equity investment in Chevron Phillips Chemical Company LLC (CPChem). Third-quarter Chemicals adjusted earnings were USD272 million, compared with earnings of USD295 million in the second quarter.
During the third quarter, CPChem's Olefins and Polyolefins business contributed USD261 million to Phillips 66's Chemicals earnings. This was a decrease of USD6 million compared with the prior quarter, as higher sales volumes and lower operating costs primarily due to lower turnaround activity were more than offset by insurance recoveries recognized in the prior quarter and lower ethylene margins. Global utilization for O&P was 94 percent, up from 91 percent in the second quarter.
CPChem's Specialties, Aromatics and Styrenics business contributed USD17 million of adjusted earnings in the third quarter, a decrease of USD21 million from the prior quarter. The decrease was primarily due to lower earnings at CPChem's SA&S equity affiliates, as well as lower volumes.
Refining adjusted earnings were USD1,052 million in the third quarter, compared with $604 million in the second quarter.
The increase in earnings was largely driven by improved realized gasoline and secondary product margins, as well as higher volumes. Global realized margins improved USD2.26 per barrel, while market capture increased to 72 percent, compared with 62 percent in the prior quarter.
As MRC informed earlier, Phillips 66 and Chevron Phillips Chemical are teaming up with the Sweeny Independent School District in Texas to help fund the creation of a petrochemical academy.
Phillips 66 Company is an American multinational energy company headquartered in Westchase, Houston, Texas. It debuted as an independent energy company when ConocoPhillips executed a spin-off of its downstream and midstream assets. Taking its name from the 1927 "Phillips 66" trademark of ConocoPhillips predecessor Phillips Petroleum Company, Phillips 66 began trading on the New York Stock Exchange on May 1, 2012, under the ticker PSX. The company is engaged in producing natural gas liquids (NGL) and petrochemicals. The company has approximately 14,000 employees worldwide and is active in more than 65 countries.
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