Phillips 66 Q2 chem earnings rise 27% on improved margins

01 August 2012 13:47  [Source: ICIS news]

HOUSTON (ICIS)--Phillips 66’s adjusted second-quarter chemical segment earnings rose 27% year on year to $242m (€196m), mainly because of improved margins and lower utility costs, the US-based refining and chemicals firm said on Wednesday.

Phillips 66 conducts its chemical business through its 50% stake in the Chevron Phillips Chemicals (CP Chem) joint venture with Chevron.

Phillips 66 said that CP Chem’s ability to run a lighter feedstock slate enabled it to take advantage of low US feedstock costs, particularly for ethane and propane, the company said.

Meanwhile, lower natural gas prices reduced utility costs at CP Chem’s manufacturing facilities.

Chemical plant capacity utilisation rates were about 90%, slightly higher than the same period in 2011.

The chemical segment’s second-quarter adjusted earnings exclude a $35m expense related to early debt retirement by CP Chem.

Overall, Phillips 66 reported $1.4bn in second-quarter adjusted earnings, up from $1.0bn in the 2011 second quarter.

“The location of our domestic refining, midstream and chemicals facilities enabled us to access advantaged feedstocks, creating strong earnings and cash flow,” said CEO Greg Garland.

Phillips 66 was spun off by ConocoPhillips earlier this year as an independent, publicly traded company.

($1 = €0.81)


By: Stefan Baumgarten
+1 713 525 2653



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