Phillips 66's second-quarter profit beats on higher processed volumes
Adds details on results throughout
July 30 (Reuters) -Refiner Phillips 66 PSX.N reported quarterly results that beat analysts' estimates, helped in part by strength at its midstream and chemicals units and higher processed volumes, even as it grappled with lower margins due to a tepid summer driving season.
Refiners process crude oil into gasoline, diesel, jet fuel and other products. They ramped up processing capacity to 93.5% in the second quarter, compared with 91% in the same period last year, according to the U.S. Energy Information Administration, on expectations of an uptick in demand that did not materialize.
While Phillips 66's crude capacity utilization stood at 98% in the second quarter compared with 93% a year earlier, the company's realized margins fell to $10.01 per barrel from $15.32. The refining segment's earnings slumped 74.3%.
Last week, rival Valero VLO.N reported a lower second-quarter profit but also managed to beat earnings estimates as strong processing volumes offset a slump in margins.
On an adjusted basis, Houston-based Phillips 66 earned $2.31 per share for the quarter, beating estimates of $1.98, according to LSEG data.
Income from the company's midstream segment rose 23.7%, and increased 15.6% for the chemicals unit.
Phillips 66's renewable fuels segment posted a loss of $55 million, compared with a profit of $68 million last year, amid a glut in renewable diesel production capacity in the United States.
Reporting by Seher Dareen in Bengaluru; Editing by Shounak Dasgupta
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