logo
Sign in or Register

Already a member?

Sign in

Or sign in with your account on:

Not a member yet?

Register
    

Phillips 66 Pops On Earnings Miss

By  +Follow July 31, 2013 1:27PM
Share:
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.


Liked What You Read? Join Equities.com as a contributor and get eyeballs on your content FOR FREE!

Results for PSX
mcsdsd
29 Aug 14 00:15:29
RT @IBDinvestors: IPO Stock Analysis: Phillips 66 Partners has been working on the right side of a base http://t.co/YT7hvy8hjd $PSXP $PSX
Alpha Maven Alerts
28 Aug 14 21:32:25
$PSX, Positive, Yesterday, SD +2.22, #NYSE #OilGas
Swing Trade Alerts
28 Aug 14 20:34:35
IBD:IPO Stock Analysis: Phillips 66 Partners has been working on the right side of a base http://t.co/Y76a65Yxii $PSXP $PSX
Stock Updates
28 Aug 14 19:41:52
$PSX: ConocoPhillips Q2 Earnings Beat on Higher Prices and Volume http://t.co/371Iucw2Ws http://t.co/gVo8SUDvcd
Karin Jeter
28 Aug 14 19:14:37
$PSX Phillips 66 (PSX) Senio http://t.co/ZqeP15E2fs
Darlene S Williams
28 Aug 14 19:01:33
RT @IBDinvestors: IPO Stock Analysis: Phillips 66 Partners has been working on the right side of a base http://t.co/YT7hvy8hjd $PSXP $PSX
Investors.com
28 Aug 14 19:00:29
IPO Stock Analysis: Phillips 66 Partners has been working on the right side of a base http://t.co/YT7hvy8hjd $PSXP $PSX
Joseph DeSouza
28 Aug 14 13:33:55
Sold $COP and $PSX...will re-by on dip
Seeking Alpha
28 Aug 14 03:39:14
Phillips66: A Solid Long-Term Pick? http://t.co/aACug8elbw $PSX
Margart Vargas
27 Aug 14 14:41:58
$PSX Phillips 66 -- Moody's upgrades Phillips 66 http://t.co/peZgK3QxkQ
Market News
27 Aug 14 13:41:55
$PSX: Is ConocoPhillips (COP) Poised to Beat Earnings Estimates? http://t.co/AEOXdUyyLO http://t.co/3Re4mz5WPU
Seeking Alpha
27 Aug 14 13:18:43
DCP Midstream Partners: This Dropdown-Powered Growth Story Deserves Your Attention http://t.co/aaBohgQxm0 $SE $PSX $DPM
MoneyShow
27 Aug 14 12:51:20
$XOP $PSX $SPY $ATW $IP Whats next for energy stocks and a new pick in materials http://t.co/nchlilr6EK
Traders Expo
27 Aug 14 12:50:57
$XOP $PSX $SPY $ATW $IP Whats next for energy stocks and a new pick in materials http://t.co/DfBys1M1k6
TomAspray
27 Aug 14 12:50:18
$XOP $PSX $SPY $ATW $IP Whats next for energy stocks and a new pick in materials http://t.co/TvuQXJ5DXT
Lu Crowley
27 Aug 14 11:00:40
Phillips 66 -- Moody's upgrades Phillips 66 to A3 $PSX http://t.co/rz0hAHVBAN
Financial News
27 Aug 14 09:41:55
$PSX: Phillips 66 Profit Falls 9.9% http://t.co/n1Fkw4sZeG http://t.co/zFDJOG3S0N
Candance Schulz
27 Aug 14 09:41:17
Phillips 66 -- Moody's upgrades Phillips 66 to A3 $PSX http://t.co/bEvrnjmlej
MoneyShow
27 Aug 14 05:52:13
ChartsinPlay $IP buy 50% at $47.72 & 50% long at $7.33 stop- $46.44 $PSX Phillips 66 long at $82.66 sell 1/3 on the opening-stop at $79.79
Traders Expo
27 Aug 14 05:51:55
ChartsinPlay $IP buy 50% at $47.72 & 50% long at $7.33 stop- $46.44 $PSX Phillips 66 long at $82.66 sell 1/3 on the opening-stop at $79.79
TomAspray
27 Aug 14 05:51:37
ChartsinPlay $IP buy 50% at $47.72 & 50% long at $7.33 stop- $46.44 $PSX Phillips 66 long at $82.66 sell 1/3 on the opening-stop at $79.79
MoneyShow Trading
27 Aug 14 05:49:23
ChartsinPlay $IP buy 50% at $47.72 & 50% long at $7.33 stop- $46.44 $PSX Phillips 66 long at $82.66 sell 1/3 on the opening-stop at $79.79
Business Updates
27 Aug 14 03:41:52
$PSX: Phillips 66 Reaches New 1-Year High at $87.10 (PSX) http://t.co/ke46OM3Ut8 http://t.co/4GrJqa77ud
Alpha Maven Alerts
26 Aug 14 22:45:25
$PSX, Positive, Yesterday, SD +2.09, #NYSE #OilGas
Doug Williams
26 Aug 14 07:54:15
$EOG $109.35 +1.31% nice gap $PSX working $TSLA $LNG best in show
August Wu
25 Aug 14 21:55:37
@WallStreeTopGun what's ur rationale behind keeping buying $psx puts? Or r u just kidding with paper trading?
gordon gekko is god
25 Aug 14 19:47:43
Dividend Stock Analysis: Is It Time To Buy ConocoPhillips? http://t.co/7n2qfW8qLk $COP, $BP, $CVX, $PSX, $XOM
Market Updater
25 Aug 14 16:41:47
$PSX: Phillips 66 Partners: This MLP Acts Like Growth Stock http://t.co/evs2lLDK9D http://t.co/HOW2VugfiM
awolam
25 Aug 14 16:28:13
RT @SeekingAlpha: Dividend Stock Analysis: Is It Time To Buy ConocoPhillips? http://t.co/EyWWY3Dqgw $BP $CVX $PSX $XOM $COP
Seeking Alpha
25 Aug 14 16:22:44
Dividend Stock Analysis: Is It Time To Buy ConocoPhillips? http://t.co/EyWWY3Dqgw $BP $CVX $PSX $XOM $COP
US Banking News
25 Aug 14 13:12:24
Phillips 66 Reaches New 1-Year High at $87.10 $PSX http://t.co/i24QjaMxhs
WKRB News
25 Aug 14 13:04:33
Phillips 66 Reaches New 1-Year High at $87.10 $PSX http://t.co/gq4KBjzIfk
Zacks.com
25 Aug 14 12:52:05
Why are oil prices remaining low? $WFT $RIG $PTEN $PSX $NE $MDR $JONE $EOX $E $CVX $CEO $CAM http://t.co/bQ8fbeZr5O
4-traders.com
25 Aug 14 11:40:04
Phillips 66 : U.S. Patents Awarded to Inventors in Oklahoma (Aug. 25) http://t.co/GxS9BRZf1F $PSX
Market Monitor
25 Aug 14 09:41:48
$PSX: Charlotte swimmers excel at Phillips 66 National Championships http://t.co/B2Mxq544UY http://t.co/rssaqEv1XS
MoneyShow
25 Aug 14 09:36:38
ChartsinPlay $ATW not acting well close out 50% long at $48 or better, or on close, $PSX $XOP look good http://t.co/HdtH5op2QE
Traders Expo
25 Aug 14 09:36:13
ChartsinPlay $ATW not acting well close out 50% long at $48 or better, or on close, $PSX $XOP look good http://t.co/d6H8R1rRfT
TomAspray
25 Aug 14 09:35:38
ChartsinPlay $ATW not acting well close out 50% long at $48 or better, or on close, $PSX $XOP look good http://t.co/nyK5bOyC5L
MoneyShow Trading
25 Aug 14 09:34:55
ChartsinPlay $ATW not acting well close out 50% long at $48 or better, or on close, $PSX $XOP look good http://t.co/p1pQ4Xrn1A
4-traders.com
25 Aug 14 04:10:06
Phillips 66 : Assigned Patent http://t.co/MGoCKDcPwL $PSX
Alpha Maven Alerts
24 Aug 14 21:15:24
$PSX, Positive, Yesterday, SD +3.08, #NYSE #OilGas
TradeTexasBig
24 Aug 14 12:19:39
$PSX chart: Is this a double top ? . http://t.co/AUr829J2IJ
TV_Trading Ideas
24 Aug 14 12:19:39
Is this a double top ? $PSX http://t.co/A1darXg98M
Theta Forums
24 Aug 14 02:26:27
RT @tastytrade: It's last call on tastytrade! tune in as we take a look at $AMZN, $BRCM, $BA, and $PSX! https://t.co/XgUd58KO #options
Biz Headlines
24 Aug 14 00:41:47
$PSX: Phillips 66 says evaluating condensate export process, seeking clarity http://t.co/7bBLFjNhfB http://t.co/Rw3xGxPyIx
Carmen Hill
24 Aug 14 00:36:35
$PSX (Phillips) enters existing rate of daily change of 1.0: http://t.co/MbieqVH5aa
TV_Trading Ideas
23 Aug 14 17:48:30
PSX ascending wedge trend reversal $PSX http://t.co/LVpYiZ5NjO
CSIMarket.com
23 Aug 14 04:05:43
Phillips 66 $PSX #stock #investing: Phillips 66 delivered mixed results in the second quarter, where Sales gr... http://t.co/CaY4Mu7HcB
Dadiva  Netter
22 Aug 14 18:57:08
RT @nelderini: Warren Buffett dumps $1.1 billion in oil investments, grows more bullish on renewables RT @RigData: http://t.co/lgCAPWrlDd …
Zacks.com
22 Aug 14 11:53:50
Why have oil prices remained below $100 a barrel? $WFT $RIG $PTEN $PSX $NE $MDR $JONE $EOX $E $CVX $CEO $CAM http://t.co/zuBXPP3dQe
				
				
By  +Follow July 31, 2013 1:27PM
Share:

Comments

 

blog comments powered by Disqus

About us

Equities.com is the most advanced interactive online social ecosystem for the financial industry, serving as a resource center and next-generation communication platform that connects self-directed investors with public issuers, market experts, and professional service providers and vendors. Registered members can leverage our exclusive proprietary research tools such as the Small-Cap Stars, which outperformed 90% of all small-cap mutual funds, and robust do-it-yourself E.V.A. research reports. The Equities.com Issuer Dashboard is the ideal tool to communicate and manage investor awareness campaigns to the investment community, as well as to access valuable resources to help your company grow.

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