Energy company Phillips 66 (PSX) reported net earnings of $524 million, or $1.07 per share, for the first quarter of 2018, down 2.1% year-over-year, hurt by a sharp drop in refining income. Adjusted earnings increased to $512 million, or $1.04 per share, from $294 million, or $0.56 per share a year ago. The company’s profit results beat market estimates for the quarter.
Net income in the Midstream segment more-than-doubled to $233 million during the quarter from $112 million last year. The Chemicals unit saw a 28% increase in net income to $232 million. The company’s JV with Chevron Corporation (CVX) contributed to earnings in the quarter, after recovering in full from the effects of Hurricane Harvey. The chemicals business also benefited from the shale boom in terms of raw material availability.
Marketing and specialties net income grew to $184 million from $141 million in the prior-year period. Net income at the Refining unit declined 65% to $91 million.
The company returned $3.8 billion to shareholders through dividends and share repurchases in the quarter.
In Midstream, Phillips’ master limited partnership, Phillips 66 Partners, received sufficient binding commitments to proceed with construction of the Gray Oak Pipeline system, which will provide crude oil transportation from West Texas to destinations in the Corpus Christi and Sweeny/Freeport markets, including the Phillips 66 Sweeny Refinery. The pipeline is expected to start service by the end of 2019.
