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Phillips 66 Q1 earnings drop to $385 million from $650 million

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Staff writer ▼ | April 30, 2016
Phillips 66, an energy manufacturing and logistics company, announces first quarter earnings of $385 million, compared with $650 million in the fourth quarter of 2015.
Phillips 66
Phillips 66   Adjusted earnings were $360 million
Adjusted earnings were $360 million, a decrease of $350 million from the last quarter.

hillips 66's Midstream first-quarter adjusted earnings were $40 million, a decrease of $2 million from the fourth quarter of 2015.

Adjusted earnings from Phillips 66’s Transportation business were $72 million during the first quarter, a decrease of $6 million from the fourth quarter. Results were impacted by lower earnings from the Rockies Express and Explorer pipeline joint ventures and higher property taxes.

Phillips 66's NGL business generated a loss of $11 million in the first quarter. The $9 million decrease from the prior quarter's adjusted results was largely related to seasonal storage activity, partially offset by lower taxes in the first quarter. Additionally, fractionation processing volumes were limited by heavier incoming NGL composition and turnaround activity.

Phillips 66 Partners (PSXP) contributed $32 million to the Midstream segment's first-quarter earnings. Distributions per limited partner unit increased by 5 percent from the fourth quarter to $0.481 per unit. Distributions to Phillips 66 from PSXP were up 7 percent in the first quarter, compared with the prior quarter, reflecting the positive impact of incentive distribution rights.

For the first quarter, the company’s equity investment in DCP Midstream, LLC (DCP Midstream) had an adjusted loss of $21 million, compared with a $34 million adjusted loss in the prior quarter, as low commodity prices continued to impact DCP Midstream's results.

Compared with the prior quarter, results benefited from improved reliability, higher earnings from DCP Midstream's increased interests in the Sand Hills and Southern Hills pipelines and favorable contract restructuring efforts.