Phillips 66 (PSX – Free Report) posted third-quarter 2018 adjusted earnings of $3.10 per share, which surpassed the Zacks Consensus Estimate of $2.50. The bottom line increased from the year-ago quarter’s figure of $1.66. The upside came on the back of higher contribution from all the segments.
Phillips 66 Price, Consensus and EPS Surprise
Quarterly revenues totaled $30.6 billion, up from the year-ago quarter’s tally of $26.2 billion. The figure also beat the Zacks Consensus Estimate of $28.5 billion.
Segment Results
Midstream
The segment generated adjusted quarterly earnings of $261 million, up from $99 million in the year-ago quarter. The expansion of the Sweeny Hub as well as higher throughputs drove income.
Chemicals
The segment generated adjusted earnings of $210 million compared with $153 million in the year-ago quarter. The improvement was supported by the ramp-up of the new U.S. Gulf Coast petrochemicals assets.
Refining
The segment’s adjusted earnings of $959 million increased from $548 million in the prior-year quarter. During the quarter, Phillips 66’s refining utilization was 93%.
Marketing and Specialties (M&S)
This segment recorded earnings of $290 million, up from $211 million in the year-ago quarter.
Financial Condition
In the reported quarter, Phillips 66 generated $582 million of cash from operations. It also returned capital worth $775 million to shareholders.
As of Sep 30, cash and cash equivalents were $924 million along with debt of $11.3 billion. The company’s debt-to-capitalization ratio was 26%.
Q3 Price Performance
During the third quarter, Phillips 66’s shares inched up 0.4% compared with the industry’s 4.1% rise.
Zacks Rank & Stocks to Consider
Currently, Phillips 66 carries a Zacks Rank #3 (Hold).
A few better-ranked players in the same sector are Murphy Oil Corporation (MUR- Free Report) , Enbridge Inc (ENB – Free Report) and Eni SpA (E – Free Report) . All these stocks flaunt a Zacks Rank #1 (Strong Buy).
