Phillips 66 Q3 chem profit rises 42% on margins, lower utility costs

31 October 2012 13:01  [Source: ICIS news]

HOUSTON (ICIS)--Phillips 66’s adjusted third-quarter chemical segment earnings rose by $82m (€63m) or 42% year on year to $275m, mainly because of improved margins and lower utility costs, the US-based refiner said on Wednesday.

Phillips 66’s chemicals business consists of its 50% stake in Chevron Phillips Chemical (CPChem).

Olefins chain margins improved as a result of lower ethane and propane feedstock prices, Phillips 66 said.

“CPChem captured cost advantages in the North American and Middle East ethylene and derivative markets by achieving high utilisation rates,” Phillips 66 said.

“In CPChem’s olefins and polyolefins segment, global utilisation was 97% during the third quarter, consistent with performance from the same period last year,” it said.

CEO Greg Garland added: “Our portfolio provides us the opportunity to invest in high-value infrastructure, midstream and chemicals projects.”

Adjusted earnings exclude losses associated with the early retirement of debt, impairments of fixed assets and an increase in deferred tax liabilities.

Before these adjustments, Phillips 66’s third-quarter chemical segment earnings were $153m, compared with $193m in the 2011 third quarter. Phillips 66 did not comment on the chemical segment’s third-quarter sales.

($1 = €0.77)

By: Stefan Baumgarten
+1 713 525 2653

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