30 October 2013 12:59 [Source: ICIS news]
HOUSTON (ICIS)--Phillips 66’s third-quarter chemical segment earnings rose 71% year on year to $262m (€191m) but the company’s refining segment swung to a $2m loss from a profit of $1.5bn in the same period a year ago, the US-based refining and chemicals firm said on Thursday.
Phillips 66’s third-quarter chemical earnings - which reflect its 50% stake in US petrochemicals major Chevron Phillips Chemical (CP Chem) - benefited from improved margins in olefins and polyolefins, primarily related to increased polyethylene prices, and from “solid utilisation rates,” the company said.
Chemical earnings from specialties, aromatics and styrenics were consistent with the same period last year, Phillips 66 added.
For the nine months ended 30 September, chemical segment earnings were $725m, compared with $577m in the same period a year ago.
The loss in Phillips 66’s refining segment was due to weaker worldwide refining margins, the company said.
"We ran well during the quarter," but weaker refining margins had a significant impact on the company’s overall earnings, CEO Greg Garland said.
Overall, Phillips 66 reported third-quarter earnings of $535m, down from $1.6bn in the third quarter of 2012.
In related news, US refiner Valero earlier this week also cited lower refining margins as the main reason for a decline in its third-quarter net income.
($1 = €0.73)
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