Diversified energy firm Phillips 66 (PSX) reported record earnings for the third quarter, supported by strong revenue growth in its main business segments. The market responded positively to the above-consensus results and the company’s stock gained about 4% in the pre-market trading.
Net profit, adjusted for non-recurring items, surged to a record high of $1.46 billion or $3.10 per share in the September quarter from $0.86 billion or $1.66 per share a year earlier and came in above estimates. Reported earnings were $3.18 per share, higher than $1.60 per share recorded in the third quarter of 2017.
Income from Midstream more than doubled and Chemicals segment surged 74%, while the Refining division registered a 70% growth. Marketing and Specialties income was 53% higher compared to last year. During the quarter, total revenues jumped 16.7% annually to $30.59 billion, exceeding expectations.
Income from the Midstream and Chemicals segments rose 19% and 74% respectively, while the Refining division registered a 70% growth
“We demonstrated the value of our integrated portfolio, delivering strong earnings and advancing strategic growth projects in the third quarter. In the Central Corridor, Refining and Midstream ran at record levels, capturing favorable margins,” said CEO Greg Garland.
The management returned $775 million to shareholders through dividends and share repurchases during the three-month period. Over the past six years, the company repurchased or exchanged approximately 30% of its outstanding shares.
A statement from the company said its Gray Oak Pipeline project, with 900,000 barrels per day of crude oil capacity, is on track for completion by the end of next year. Construction of two new fractionators and additional storage at Sweeny Hub is currently progressing, while sanction has been granted to further expand crude oil storage at the Beaumont Terminal.
Phillip 66 shares gained about 4% in the pre-market trading Friday, after closing the previous trading session higher. The stock dropped 3.6% since the beginning of the year, all along underperforming the market.