30 January 2013 13:39 [Source: ICIS news]
LONDON (ICIS)--Phillips 66’s adjusted earnings for its chemical division for the fourth quarter of 2012 rose by 66% year on year to $246m (€182m) on the back of improved margins, the US-based refiner said on Wednesday.
Although the figure represents a $98m increase on chemical segment earnings during the same quarter 2011, earnings dipped slightly from $275m in the third quarter of 2012.
Overall adjusted group earnings for the quarter were $1.31bn, a steep increase from $379m reported in the same period of 2011.
Phillips 66’s chemical business consists of its 50% stake in Chevron Phillips Chemical. (CPChem)
“Strong realised refining and chemicals margins improved our earnings during the quarter,” said Phillips 66 CEO Greg Garland.
The company noted an 8% increase in olefins and polyolefins, despite the impact of downtime at Saudi Polymers Company - 35%-owned by CPChem - during the quarter on utilisation rates.
Externally-marketed sales volumes increased to 2.5m tonnes during the quarter, primarily driven by the increase in olefins and polyolefins volumes.
“Specialties, aromatics and styrenics benefitted from improved benzene margins driven by higher sales prices, partially offset by rising feedstock costs,” the company added.
Adjusted earnings exclude losses associated with the early retirement of debt, impairments of fixed assets and an increase in deferred tax liabilities. Phillips 66’s chemical earnings were the same prior to these adjustments.
($1 = €0.74)
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