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Phillips 66 follows rival Valero with a profit beat

May 16/2019

MOSCOW (MRC) -- US refiner Phillips 66 beat analystsí quarterly profit estimates, becoming the second major refiner to post rising numbers at a time when investors and analysts had largely expected poor performance due to higher Canadian crude prices, reported Reuters.

Alberta, Canadaís largest crude-producing province, mandated temporary oil production cuts effective January to reduce excess crude in storage and boost prices of Canadian crude as rising production in oil sands surpassed pipeline capacity, creating bottlenecks.

Rival Valero Energy posted profit and revenue that beat estimates last week as it sought to offset the impact of higher Canadian crude prices.

On an adjusted basis, Phillips 66ís profit fell to USD187 million, or 40 cents per share, in the first quarter ended March 31, from USD512 million or USD1.04 per share a year earlier.

Analysts, on average, were expecting the company to post a profit of 34 cents per share, according to IBES data from Refinitiv.

The Houston, Texas-based refinerís realized refining margins in the first quarter fell 56 percent to USD7.23 per barrel, from the fourth quarter, primarily due to higher Canadian crude prices, and lower clean product realizations.

The companyís utilization rate, the percentage of the total equipment or refinery involved in processing crude, was 84 percent in the quarter against 89 percent in the year-ago quarter.

As MRC wrote previously, US-based Phillips 66 remains open to developing another ethane cracker for its Chevron Phillips Chemical (CP Chem) joint venture, the refiner's CEO said in March 2018.
Author:Margaret Volkova
Tags:crude and gaz condensate, petrochemistry, Chevron Phillips, Phillips 66, Valero, USA.
Category:General News
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