) posted adjusted first-quarter 2014 earnings of $1.47 per share,
beating the Zacks Consensus Estimate of $1.34 by 9.7%. The beat
came from higher profits in midstream and chemicals businesses.
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The quarterly earnings compare unfavorably with $2.19 per share
earned a year ago. The decline was mainly due to lower refining
margins in all regions.
The segment generated adjusted quarterly earnings of $188 million
compared with $110 million in the comparable quarter last year.
The increase was backed by improved margins resulting from higher
throughput fees as well as lower operating costs.
The segment generated adjusted earnings of $316 million compared
with $282 million in the comparable quarter last year. Higher
realized Olefins and Polyolefins chain margins, benzene margins
and equity earnings led to the increase. This was partially
offset by lower ethylene volumes.
The segment generated adjusted earnings of $306 million compared
with $922 million in the year-ago quarter. The dismal results can
be traced back 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 90% and clean
product yield was 84%.
Marketing and Specialties (M&S)
Segmental earnings were $137 million, down from $188 million from
the comparable quarter last year. The decrease stemmed from lower
exports due to the refinery turnaround activity in the Gulf Coast
region during the first quarter as well as higher costs and lower
In the reported quarter, Phillips 66 generated $1.4 billion of
cash from operations. It also returned $2.2 billion of capital to
shareholders. Of this, $229 million was disbursed as dividends
while $640 million was used to repurchase 8.4 million shares of
As of Mar 31, 2014, cash and cash equivalents were $5.3 billion
alongside $6.2 billion of debt. The company's
debt-to-capitalization ratio was 22% and return on capital
employed was 23%.
The stock has a Zacks Rank #3 (Hold). Investors interested in oil
refiners business segment can also consider stocks like
Helmerich & Payne, Inc.
Boardwalk Pipeline Partners, LP
). All these sport a Zacks Rank #1 (Strong Buy).