By RTT News,
April 30, 2014, 09:59:00 AM EDT
(RTTNews.com) - Oil refiner and chemical maker Phillips 66 ( PSX ) on Wednesday reported an 11 percent increase in profit for the first quarter from last year, as a one-time gain on the sale of Phillips Specialty Products as well as lower expenses helped offset a decline in revenues.
Greg Garland, chairman and CEO of Phillips 66 said, "We delivered a strong quarter, with solid performance and improved margins in our Midstream and Chemicals businesses. Our Refining results were impacted by planned downtime at several of our Gulf Coast and Central Corridor refineries and tightening crude spreads."
The Houston, Texas-based company's net income for the first quarter was $1.57 billion or $2.67 per share, up from $1.41 billion or $2.23 per share in the year-ago period. The latest quarter's results include a gain of $706 million primarily related to the sale of Phillips Specialty Products Inc. or PSPI.
Billionaire investor Warren Buffett'sBerkshire Hathaway Inc. (BRK.A, BRK.B) said in late December 2013 that has agreed to acquire PSPI, a flow improver business, from Phillips 66.
Excluding items, adjusted earnings for the latest quarter were $866 million or $1.47 per share. On average, 14 analysts polled by Thomson Reuters expected earnings of $1.34 per share for the quarter. Analysts' estimates typically exclude one-time items.
Revenues and other income for the quarter declined 3 percent to $41.10 billion from $42.27 billion in the year-ago period. Analysts had a consensus revenue estimate of $42.90 billion.
Total costs and expenses for the quarter were $39.80 billion, down 1 percent from $40.22 billion in the previous-year quarter.
Refining segment profit for the period fell 66 percent from the year-ago period to $306 million, while Marketing and Specialties earnings decreased 28 percent to $137 million.
Midstream earnings for the quarter grew 69 percent from the prior-year period to $188 million, while chemical unit's earnings increased 12 percent to $316 million. Chemicals segment reflects Phillips 66's investment in Chevron Phillips Chemical Company.
PSX is currently trading at $84.08, up $0.33 or 0.40 percent on a volume of 119,371 shares.
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