Sign in or Register

Already a member?

Sign in

Or sign in with your account on:

Not a member yet?



Phillips 66 Pops On Earnings Miss

By  +Follow July 31, 2013 1:27PM
Tickers Mentioned:

Phillips 66 (PSX) , by market cap the world’s largest oil and gas refiner and marketer, posted second-quarter earnings on Wednesday morning that showed the company’s profits were significantly lower than expected.

Phillips is in the habit of beating earnings forecasts on a regular basis, but for the recently ended period, the company netted $958 million, or $1.53 per share on revenue of $43.95 billion, compared to the prior-year period during which the company made $1.18 billion, or $1.86 per share. Analysts had expected earnings of $1.81 per share on revenue of $42.03 billion.

The recent increase in US oil prices was cited as one of the reasons for the diminished results, but the company’s refining operations were also substantially hampered by a hike in the cost of ethanol credits, otherwise known as Renewable Identification Numbers (RINS).

In 2005, the Environmental Protection Agency implemented the Renewable Fuel standard, imposing a gradual decrease in the burning of fossil fuels by requiring refiners to blend increasing amounts of ethanol into their products, with the goal of adding 36 billion gallons of renewable fuel into the overall supply by 2022. The EPA tracks the compliance of oil and gas refiners through RINS, which operate as credits; in other words, a company can acquire RINS through the purchase and subsequent blending of ethanol into its products or, if it does not comply, can meet its RINS requirements by purchasing them from other companies.

As ethanol minimums have increased, so too has the cost of RINS, and oil companies claim that the higher prices are starting to inflate the cost of doing business. On a conference call discussing the company’s quarterly performance, Phillips 66 said that it will increase exports in the third quarter to offset higher prices.

Still, the rare miss on top and bottom lines was offset by the company’s approval of a $1 billion share buyback program, as well as a debt reduction of $500 million. Shares were down about 3 percent before the commencement of trading, but rebounded nearly 5 percent after the opening bell to $61.36.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Signup for our daily newsletter and get our best articles emailed right to you!

Results for PSX
5 Jul 15 20:14:03
$PSX: Company Shares of Phillips 66 Rally 2.3%: http://t.co/yoIkZG3bsf
Capital Market Labs
5 Jul 15 18:06:35
$PSX Trade Card -> http://t.co/Cff6qmQZ1E http://t.co/SGJmJSOz2Y
5 Jul 15 13:40:02
$PSX is rated BUY, 12.9% upside by Wall Street analysts based on average ratings/targets http://t.co/szfpMk1oml http://t.co/5HLaFkoD8l
Thomas Ullmann
5 Jul 15 07:57:07
Phillips 66 Refines Spending En Route To Higher Margins $PSX http://t.co/UqFwjFZDyH
4 Jul 15 18:50:02
XLF Financials Select Sector SPDR Bid http://t.co/EKwtq3BCVF $XLF $ZWB.TO $GRCU $PSX #XLF #tradeideas #stocks
4 Jul 15 18:48:32
VALE Companhia Vale do Rio Doce SA P/E Ratio http://t.co/rAxBYkKAGT $VALE $PSX $HOD.TO $MO #VALE #finance #stockmarket
Stock Forums
4 Jul 15 18:47:06
TVIX VelocityShares Daily 2x VIX Short Term ETN Ask http://t.co/NHXwzLlMqz $TVIX $FXB $SH $PSX #TVIX #share #nasdaq
4 Jul 15 18:47:04
TRV The Travelers Cos., Inc. Short Sales http://t.co/FaoYmyKDrh $TRV $MON $ALNY $PSX #TRV #stock #tradeideas
4 Jul 15 18:45:33
TBRA Tobira Therapeutics, Inc. Stock Message Board http://t.co/kIxQAeXRF7 $TBRA $AEE $PSX $EWY #TBRA #tradeideas #stockmarket
Investors Hangout
4 Jul 15 18:45:32
SSO ProShares Ultra S&P 500 Fund Exchange http://t.co/NLGx7xgAy1 $SSO $PSX $FXY $BLTA #SSO #tradeideas #stockmarket
4 Jul 15 18:45:09
SGYP Synergy Pharmaceuticals, Inc. E.P.S. http://t.co/Mnfd988B73 $SGYP $XLV $NEU $PSX #SGYP #invest #stockmarket
Investors Hangout
4 Jul 15 18:43:34
PMCB PharmaCyte Biotech, Inc. Current Price http://t.co/4s6IQPXWG4 $PMCB $TRX $AMZN $PSX #PMCB #tradeideas #finance
Investors Hangout
4 Jul 15 18:43:33
RDSH Roadships Holdings, Inc. Message Board Posts http://t.co/frvWidl4XE $RDSH $PSX $O $AMCX #RDSH #tradeideas #investing
SMPH #Sanders2016
4 Jul 15 18:43:31
PFPT Proofpoint, Inc. Investor Opinions http://t.co/2dGhIZ85Cq $PFPT $ALDR $PSX $L.TO #PFPT #pennystocks #nasdaq http://t.co/mWqUw0JyJe
4 Jul 15 18:43:05
PSX Phillips 66 Yield http://t.co/2yGUg7Y0FT $PSX $IYE $UVXY $EEM #PSX #nasdaq #share
Rosner Stocks
4 Jul 15 18:43:05
PSX Phillips 66 Ideas http://t.co/XtBRFggxHW $PSX $RDSH $TASR $CNC #PSX #stock #stocks
Investors Hangout
4 Jul 15 18:43:04
PSX Phillips 66 E.P.S. http://t.co/Wwc7Bskz0w $PSX $PSX $JNK $ZION #PSX #investing #stock
4 Jul 15 18:43:04
PSX Phillips 66 Ask http://t.co/JEkui6KRIT $PSX $ZIV $BLUE $NKE #PSX #share #stock
4 Jul 15 18:43:03
PSX Phillips 66 EOD Data http://t.co/36CsuNOKnR $PSX $KBE $MBT.TO $TQQQ #PSX #finance #stockmarket
4 Jul 15 18:42:19
PFPT Proofpoint, Inc. Investor Opinions http://t.co/e1TiINxz2S $PFPT $ALDR $PSX $L.TO #PFPT #pennystocks #nasdaq
4 Jul 15 18:42:14
NMBL Nimble Storage, Inc. Ex-Div Date http://t.co/BwaO19n1gO $NMBL $PSX $MO $KLIC #NMBL #nasdaq #share
4 Jul 15 18:42:09
NWBO Northwest Biotherapeutics, Inc. News http://t.co/O009nAo5nj $NWBO $SSO $KBE $PSX #NWBO #stock #stock
Lucky Jimmy
4 Jul 15 18:39:33
IWM Russell 2000 iShares Prev Close http://t.co/lgowCEMCGV $IWM $ONCE $PSX $VNET #IWM #stock #share
4 Jul 15 18:38:11
HXL Hexcel Corp. Short Sales http://t.co/NkmqOnkW1Y $HXL $PSX $FXA $JNJ #HXL #share #finance
4 Jul 15 18:36:33
FSLR First Solar Inc. Stock Forum http://t.co/tBe9BAapiv $FSLR $PSX $RDSH $SCTY #FSLR #investing #investing
4 Jul 15 18:36:32
FXB Currency Shares British Pound Sterling Trust Company Info http://t.co/F6DXV7RLPO $FXB $XLE $PSX $SH #FXB #stock #stockmarket
Investors Hangout
4 Jul 15 18:36:10
FXA Currency Shares Australian Dollar Trust Market Cap http://t.co/GLNOOltN7o $FXA $UNM $DIA $PSX #FXA #share #stockmarket
4 Jul 15 18:36:07
FV First Trust Dorsey Wright Focus 5 ETF Quotes http://t.co/zGSjv4xjeL $FV $GLD $PSX $SCCO #FV #tradeideas #invest
4 Jul 15 18:35:05
EFA iShares MSCI EAFE Index Fund Day Low http://t.co/RGqg90PsfS $EFA $EWJ $PSX $FXI #EFA #share #share
Rosner Stocks
4 Jul 15 18:35:05
DWTI VelocityShares 3x Inverse Crude ETN Stock Message Board http://t.co/cvBnAPSRi4 $DWTI $PSX $SDRL $TECL #DWTI #investing #tradeideas
The Legacy News
4 Jul 15 08:13:07
Scotiabank Reaffirms Sector Outperform Rating for Phillips 66 $PSX http://t.co/75ACfiq0qB
4 Jul 15 08:04:05
$PSX: Scotiabank Reaffirms Sector Outperform Rating for Phillips 66 (PSX): http://t.co/fTKCoIVmYD
Capital Market Labs
4 Jul 15 07:04:18
$PSX Trade Card -> http://t.co/vdALVbuNO1 http://t.co/o7VYAgaPEi
Sleek Money
4 Jul 15 05:20:39
Phillips 66 Given A Credit Rating by Morningstar $PSX http://t.co/pHBRQ39Qz7
Invest | Donate
4 Jul 15 03:45:59
@leahanneta: RSX Market Vectors Russia ETF Trust Dividend http://t.co/aruLqkmDyl $RSX $PSX $WHF $CLF #RSX #invest #investing
4 Jul 15 03:02:44
Weekly S&P500 #Stocks Trend $VLO $THC $HIG $NKE $AME $PSX $CMCSA $LLY $PVH $DTV $CB $DG $TSO $MPC $WMB $CINF @ http://t.co/RPeaHBZz9y
Penny Stocks Blog
4 Jul 15 02:52:05
RT @stock_forums: SH ProShares Short S&P 500 Fund Last Price http://t.co/GlTKcLeIwD $SH $PSX $VXX $MGA.TO #SH #pennystocks #share
Stock Forums
4 Jul 15 02:41:33
SH ProShares Short S&P 500 Fund Last Price http://t.co/GlTKcLeIwD $SH $PSX $VXX $MGA.TO #SH #pennystocks #share
4 Jul 15 02:41:03
RSX Market Vectors Russia ETF Trust Dividend http://t.co/L4WmVCR4LN $RSX $PSX $WHF $CLF #RSX #invest #investing
4 Jul 15 02:40:34
QLD ProShares Ultra QQQ Fund Ask http://t.co/sRc7dmhZyE $QLD $RMRK $SXP.TO $PSX #QLD #share #share
4 Jul 15 02:40:04
PSX Phillips 66 Shares http://t.co/Lxjm0J646m $PSX $CA $ZAZA $EWY #PSX #stocks #pennystocks
Stock Forums
4 Jul 15 02:36:37
GLD SPDR Gold Trust Shares Prev Close http://t.co/oPtB2qePJl $GLD $XLF $XLU $PSX #GLD #share #share
4 Jul 15 00:51:04
XLV Health Care Select Sector SPDR Tick http://t.co/esOroyJ2BR $XLV $PSX $JASO $CELG #XLV #share #stockmarket
Investors Hangout
4 Jul 15 00:50:36
XLF Financials Select Sector SPDR Filings http://t.co/1UtkGGodQX $XLF $PSX $AMZN $BBY #XLF #nasdaq #share
Lucky Jimmy
4 Jul 15 00:49:16
WBK Westpac Banking Corp. Ask Size http://t.co/zSBZ6NgwCO $WBK $ANY $PSX $MORL #WBK #nasdaq #stock
Rosner Stocks
4 Jul 15 00:46:19
PSX Phillips 66 Shares http://t.co/TieDbIuXUY $PSX $GE $UGAZ $CORN #PSX #nasdaq #pennystocks
Investors Hangout
4 Jul 15 00:46:14
PSX Phillips 66 Ex-Div Date http://t.co/qyt1lyfmCB $PSX $BAA $BPY $IMSC #PSX #nasdaq #invest
4 Jul 15 00:45:06
PSX Phillips 66 EOD Data http://t.co/LX56PKegcc $PSX $KEG $PSX $PPCH #PSX #share #stockmarket
4 Jul 15 00:43:08
MNKD MannKind Corp. Ideas http://t.co/XRAnaZccku $MNKD $EEM $HQH $PSX #MNKD #stocks #invest
4 Jul 15 00:42:12
LPLA LPL Financial Holdings Inc. Last Price http://t.co/wiAj6Cz0fm $LPLA $CORN $PSX $TLT #LPLA #invest #nasdaq
By  +Follow July 31, 2013 1:27PM



blog comments powered by Disqus


 Today's Must Reads

Microsegmentation: The Future of Cybersecurity?

How this Playboy Playmate Became a Better Stock Trader Than You

Long Term Rates Are On The Up…What’s Next?

The Modern Web: So Many Ways to Invest in Wireless Mobile Stocks

It's Time for the Rest of the Country to Legalize Weed


Do you expect a 10% correction by the end of 2015? in Equities.com Polls on LockerDome

About us

Equities.com is an advanced financial data portal and social network designed to connect self-directed investors with the world’s most innovative startup and small cap companies. Through our in-depth coverage of small cap markets, comprehensive research and stock valuation reports, state of the art issuer products, and world class events, Equities.com provides the social tools and insight that drive tomorrow’s investment relationships and opportunities.

Market Data powered by QuoteMedia.
Copyright © QuoteMedia. Data delayed 15 minutes unless otherwise indicated. Terms of Use.

Login or Register