Phillips 66 Beats Estimates on Stronger Margins, Shares Rise

Phillips 66 reported second-quarter adjusted earnings of $2.38 a share, comfortably ahead of the roughly $1.72 analysts expected, as stronger refining margins and lower turnaround costs lifted results. Adjusted net income reached $973 million, versus consensus of about $700 million, while adjusted pretax income totaled $1.29 billion. The U.S. refiner said realized refining margins improved to $11.25 per barrel from $10.01 a year earlier, and turnaround expenses were nearly halved to $53 million. Midstream operations contributed adjusted pretax income of $731 million, broadly in line with forecasts. Management reaffirmed plans to shut the Los Angeles refinery and finalize asset sales in Germany and Austria by year-end, part of an ongoing portfolio overhaul aimed at concentrating on higher-return assets. The shares rose roughly 2.8% in early trading following the earnings beat.