Phillips 66 Q4 chem earnings rise 6% on PE margins, ethylene volume

29 January 2014 13:52 Source:ICIS News

HOUSTON (ICIS)--Phillips 66’s fourth-quarter chemical segment earnings rose 6% year over year to $261m mainly because of higher polyethylene (PE) margins and ethylene volumes, the US-based energy and logistics company said on Wednesday.

The segment earnings reflect Phillips 66’s 50% stake in US-based petrochemicals major Chevron Phillips Chemical (CP Chem).

Phillips 66 added that CP Chem’s specialties, aromatics and styrenics business was adversely affected by benzene margins and costs related to a planned turnaround in the fourth quarter.

For the 12 months ended 31 December, Phillips 66’s chemical segment earnings were $986m, compared with $823m in 2012.

Overall, Phillips 66 reported fourth-quarter earnings of $826m, up from $708m in the 2012 fourth quarter.

"We ran well during the fourth quarter, allowing us to capitalise on favourable crude differentials while exporting a record volume of refined products," said CEO Greg Garland.

However, on an adjusted basis, fourth-quarter earnings were $808m, down from $1.3bn in the 2012 fourth quarter, with the decline mainly due to lower refining margins in all regions except the US Gulf Coast, the company said.

By Stefan Baumgarten