Canada Markets closed

UPDATE 2-Phillips 66 posts first profit in a year on fuel demand recovery

  • Oops!
    Something went wrong.
    Please try again later.
·1 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

(Compares with estimates, adds details on results)

Aug 3 (Reuters) - U.S. refiner Phillips 66 posted an adjusted quarterly profit on Tuesday, its first in a year, as it benefited from a rebound in fuel demand due to easing of pandemic-related travel curbs.

Fuel consumption has been rising this year after hitting record lows in 2020, as an increase in vaccinations encouraged governments to lift travel and other restrictions.

"Our second-quarter results reflect the recovery of operations after the prior quarter's winter storms, as well as further product demand improvement as more people across the globe are vaccinated," CEO Greg Garland said.

Phillips 66 said its refining business lost $706 million on a pre-tax basis in the second quarter, smaller than the $1 billion loss in the first quarter.

However, refining realized weaker margins in the reported quarter, partly due to higher costs of renewable identification numbers (RINs), or credits used for compliance with U.S. biofuels blending laws.

All other segments reported a profit for Phillips 66 in the quarter, with the chemicals unit contributing the highest to overall profit on strong demand and tight supplies.

The company's adjusted earnings came in at 74 cents per share for the three months ended June 30, beating analysts' estimates of 60 cents, according to Refinitiv data.

Smaller rivals Valero Energy Corp and PBF Energy Inc last week also reported results that beat estimates, pointing to improving margins on the back of a rebound in fuel demand.

(Reporting by Shariq Khan in Bengaluru; Editing by Subhranshu Sahu and Shounak Dasgupta)

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting