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Phillips 66 beats by $0.17; lowers FY16 capex guidance & expects FY17 capex guidance of $3 bln
- Reports Q3 (Sep) earnings of $1.05 per share, excluding non-recurring items, $0.17 better than the Capital IQ Consensus of $0.88.
- Midstream third-quarter earnings were $75 mln, compared with $39 mln in the second quarter of 2016.
- Chemical third-quarter earnings were $101 mln, compared with $190 mln in the second quarter of 2016.
- Refining third-quarter earnings were $177 mln, compared with $149 mln in the second quarter of 2016.
- Marketing earnings and Other were $228 mln, an increase of $29 mln from the prior quarter.
- "Our earnings during the third quarter reflect the benefit of our diversified portfolio. We generated $1.2 bln in cash from operations and a Phillips 66 Partners equity offering," said Greg Garland, chairman and CEO of Phillips 66. "This year we are delivering record operational excellence results, managing costs, executing our major projects and maintaining disciplined capital allocation. We have lowered our forecasted 2016 capital expenditures to approximately $3 bln."
- Phillips 66 continues to expand its Beaumont Terminal, with 2 mln barrels of additional crude storage to be commissioned in the fourth quarter and 1.2 mln barrels of additional products storage expected to be available by mid-2017.
- Phillips 66 capital expenditures for 2016 are expected to be approximately $3 bln, reduced from the $3.9 bln budgeted for 2016. This reduction primarily reflects Midstream project cancellations and deferrals, as well as the impact of project financing. Capital expenditures for 2017 are expected to be less than $3 bln. Additional information on the 2017 capital budget will be provided in December.