Phillips 66 Q1 chemical earnings rise 30% on higher margins

01 May 2013 14:15  [Source: ICIS news]

HOUSTON (ICIS)--Phillips 66’s 2013 first-quarter chemical segment earnings rose 30% year on year to $282m (€214m), driven by higher olefins and polyolefins margins, the US-based refining and petrochemicals firm said on Wednesday.

Margins improved because of lower feedstock costs, the company said.

Phillips 66 participates in petrochemicals markets through its joint venture with Chevron - Chevron Phillips Chemical Company (CPChem).

Capacity utilisation for olefins and polyolefins was 91% during the quarter, Phillips 66 said. 

Utilisation rates were negatively impacted by a power outage at CPChem’s Sweeny facility in Texas, and continued ramp-up operations at Saudi Polymers Company’s petrochemicals complex in Saudi Arabia. Saudi Polymers is a joint venture between CPChem and Saudi Arabia’s National Petrochemical Company.

In refining, Phillips 66 recorded first-quarter adjusted earnings of $909m, up by $455m from the year-ago period, primarily reflecting higher gasoline and distillate market crack spreads.

Phillips 66 improved its refining feedstock advantage by capturing wider Canadian crude differentials and running lower-cost crude slates at a number of its refineries, it said.

Phillips 66’s overall refining utilisation was 90% in the first quarter, reflecting turnaround activity at some refineries, as well as unplanned downtime caused by a power outage at the Sweeny refinery.

Overall, Phillips 66 more than doubled its first-quarter earnings to $1.4bn, from $636m in the first quarter of 2012.

The company added that it continues to pursue the development of a 100,000 bbl/day natural gas liquids (NGL) fractionator at Old Ocean, Texas.

If approved, construction is expected to begin in the first half of 2014, with start-up expected in the second half of 2015, it said.

($1 = €0.76)

By: Stefan Baumgarten
+1 713 525 2653

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