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Phillips 66 reports 2Q22 financial results

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World Pipelines,

Phillips 66, a diversified energy company, announces 2Q22 earnings of US$3.2 billion, compared with earnings of US$582 million in 1Q22. Excluding special items of US$118 million, the company had adjusted earnings of US$3.3 billion in 2Q22, compared with 1Q22 adjusted earnings of US$595 million.

“Our earnings reflect the strong market environment during the second quarter driven by a tight global product supply and demand balance,” said Mark Lashier, President and CEO of Phillips 66. “We are focused on reliably providing critical energy products, including transportation fuels, to meet peak summer demand. We also advanced strategic capital projects to help meet the growing demand for renewable fuels and NGLs.

“During the second quarter, we paid down US$1.5 billion of debt, increased our dividend and resumed share repurchases. Additionally, we are transforming our business to achieve sustained annual cost savings of at least US$700 million to ensure we remain competitive in any market environment. We will continue to prioritise operating excellence and disciplined capital allocation.”

Midstream 2Q22 pre-tax income was US$292 million, compared with US$242 million in 1Q22 of 2022.

Transportation second-quarter adjusted pre-tax income was US$250 million, compared with adjusted pre-tax income of US$278 million in 1Q22. The decrease was mainly due to lower equity earnings driven by reduced Bakken Pipeline crude volumes associated with winter storm impacts.

NGL and other adjusted pre-tax income was US$152 million in 2Q22, compared with adjusted pre-tax income of US$91 million in 1Q22. The increase was attributable to improved margins and volumes at the Sweeny Hub and higher equity earnings from the Sand Hills Pipeline.

The company’s equity investment in DCP Midstream, LLC generated 2Q22 adjusted pre-tax income of US$130 million, a US$99 million increase from the prior quarter. The increase was mainly driven by improved gathering and processing results and hedging impacts.

In 2Q22, the fair value of the company’s investment in NOVONIX, Ltd., decreased by US$240 million compared with a US$158 million decrease in 1Q22.

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