(Adds details, background; updates share)
Feb 3 U.S. independent oil refiner Phillips 66
posted a lower-than-expected quarterly profit as margins
were squeezed by the narrowing gap between prices of U.S. crude
and refined products.
The company's shares were down 1 percent at $80.20 in
premarket trading on Friday.
U.S. refiners, which were facing pricing pressure due to a
glut of refined products, are now being challenged by a rise in
Phillips' worldwide realized refining margins fell 31.2
percent to $6.47 in the fourth quarter. Smaller rival Valero
Energy Corp, which reported fourth-quarter results on
Tuesday, also reported a 24.4 percent drop in refining
throughput margin to $8.22.
Phillips posted an adjusted loss from its refining business
of $95 million in the fourth quarter ended Dec. 31, compared
with adjusted earnings of $376 million a year earlier.
Refining margins were also hurt by higher costs and lower
volumes due to maintenance-related activities, Phillips said.
Phillips' worldwide crude utilization rate was 93 percent,
down from 97 percent in the third quarter.
Consolidated earnings fell to $163 million, or 31 cents per
share, in the quarter from $650 million, or $1.20 per share, a
The company reported adjusted earnings of 16 cents per
share, well below analysts' average estimate of 40 cents,
according to Thomson Reuters I/B/E/S.
Total revenue and other income rose 7.4 percent to $23.67
billion, beating analysts' estimate of $22.50 billion.
(Reporting by Arathy S Nair in Bengaluru; Editing by Anil