PSX - Phillips 66 sees refineries running at mid-90% of combined capacity in Q3

2023-08-02 14:52:32 ET

Phillips 66 ( NYSE: PSX ) -2.4% in Wednesday's trading after reporting Q2 earnings that fell sharply but topped analyst estimates, the latest U.S. refiner to suffer from comparisons to last year when results were sparked by a supply crunch caused by COVID-era refinery closings and disruptions from Russia's invasion of Ukraine.

Q2 net income fell to $1.7B, or $3.72/share, from $3.2B, or $6.53/share, and realized refining margins fell to $15.32/bbl from $28.62/bbl in the year-earlier quarter.

Phillips 66 ( PSX ) said it plans to run its refineries in the mid-90% range of their combined crude oil throughput capacity of 1.9M bbl/day in Q3, after running at an average 93% of combined capacity in Q2.

Phillips 66 ( PSX ) continues to expect its Rodeo refinery in California will be fully converted to renewable diesel production in Q1 2024 when it is scheduled to begin commercial operation, CEO Mark Lashier said on the company's post-earnings conference call.

"It is, frankly, a difficult environment, [but] we believe that it's going to be challenging for California to implement their aspirations around EVs, so I think that may be overplayed," Lashier said, referring to the state's plan for 100% of new vehicles by 2035 to produce zero emissions.

The company also said the gasoline-producing fluidic catatlytic cracker at the 285K bbl/day Bayway refinery in Linden, New Jersey, was back in full production on July 20, after the 145K bbl/day FCC was shut on June 8 for repairs.

More on Phillips 66:

• Financial and valuation comparison to sector peers
• Analysis: Phillips 66: Q2 Results To Show, Once Again, Weak Chemicals Margin
• Stock price return: Up 11% YTD, up 27% in the past 12 months

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