) posted adjusted fourth-quarter 2013 earnings of $1.34 per
share, beating the Zacks Consensus Estimate of $1.0 by 34%. The
beat came from higher refined volumes, higher throughput fees
alongside higher profits from the chemicals business.
ALON USA ENERGY (ALJ): Free Stock Analysis
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PHILLIPS 66 (PSX): Free Stock Analysis Report
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The quarterly earnings compare unfavorably with $2.04 per share
earned a year ago. The decline was mainly due to lower refining
margins in all regions except the Gulf Coast.
Full-year 2013 earnings came at $5.89 per share, down 29.7% from
year-earlier earnings of $8.38 per share. The earnings, however,
came above the Zacks Consensus Estimate of $5.64.
The segment generated adjusted quarterly earnings of $121 million
compared with $71 million in the comparable quarter last year.
The increase was backed by improved margins resulting from higher
throughput fees and volume growth.
The segment generated adjusted earnings of $261 million compared
with $246 million in the comparable quarter last year. Higher
polyethylene margins, equity earnings and ethylene volumes led to
the increase. This was partially offset by higher costs and lower
The segment generated adjusted earnings of $450 million compared
with earnings of $960 million in the year-ago quarter. The dismal
results can be traced to lower realized refining margins, owing
to decline in the average worldwide market crack spread. During
the quarter, Phillips 66's refining utilization was at 92% and
clean product yield was 84%.
Marketing and Specialties (M&S)
Segmental earnings were $73 million, down from $113 million from
the comparable quarter last year. The decrease was primarily due
to the sale of the U.K. power generation business in Jul 2013,
and lower marketing margins. This was partially offset by reduced
costs and higher volumes.
In the reported quarter, Phillips 66 generated $865 million of
cash from operations. It also returned $876 million of capital to
shareholders. Of this, $232 million was disbursed as dividends
while $644 million was used to repurchase 9.9 million shares of
As of Dec 30, 2013, cash and cash equivalents were $5.4 billion
alongside $6.2 billion of debt. The company's
debt-to-capitalization ratio was 22% and return on capital
employed was 14%.
The stock has a Zacks Rank #2 (Buy). Investors interested in oil
refiners business segment can also consider stocks like
CVR Energy, Inc.
Alon USA Energy, Inc.
Calumet Specialty Products Partners LP
). While CVR Energy sports a Zacks Rank #1 (Strong Buy), Alon USA
and Calumet Specialty Products carry a Zacks Rank #2.