Phillips 66(US:PSX) ZACKSยท2025-02-11 14:45Core Insights - Phillips 66 (PSX) reported better-than-expected fourth-quarter 2024 results, with both earnings and revenue surpassing Zacks Consensus Estimates, leading to a 3.1% increase in stock price since the earnings release on January 31 [1] Refining Business Overview - Phillips 66 operates one of the largest and most sophisticated refining operations globally, with 12 strategically located refineries in the U.S. and Europe, showcasing efficiency and competitiveness [3] - Despite its strong infrastructure, PSX faced an adjusted refining loss of $759 million for the quarter [3] Fourth-Quarter Results - The company reported an adjusted loss of 15 cents per share, which was better than the Zacks Consensus Estimate of a loss of 20 cents, but lower than the profit of $3.09 from the same quarter last year [4] - Revenues decreased to $33.99 billion from $38.74 billion in the prior-year quarter, yet still exceeded the Zacks Consensus Estimate of $32.03 billion [5] Operational Performance - The refining segment reported an adjusted pre-tax loss of $759 million, contrasting with adjusted pre-tax earnings of $842 million in the previous year, missing projections of earnings of $26.7 million [6] - The decline in performance was attributed to reduced realized margins due to weaker market crack spreads and accelerated depreciation from the Los Angeles Refinery shutdown [6] Refining Margins - Realized refining margins globally fell to $6.08 per barrel from $13.88 in the previous year, with specific declines in various regions: Central Corridor ($6.68 from $21.72), Atlantic Basin/Europe ($6.09 from $9.11), West Coast ($5.74 from $11.03), and Gulf Coast ($5.58 from $13.72) [7] Future Outlook - Phillips 66 aims to achieve an adjusted controllable refining cost of $5.50 per barrel within two years, down from $5.90 in 2024, with significant contributions from the Los Angeles Refinery shutdown and business transformation initiatives [8]