Phillips 66 reported record third-quarter earnings of $5.6 billion as stronger refining margins and exceptionally high refinery utilization boosted profitability.
Adjusted earnings were also $5.6 billion, or $14.08 per share, compared with $3.8 billion during the second quarter.
Refining utilization reached 98%, while the company’s Central Corridor operations processed a record 848,000 barrels per day.
Distillates represented a record 41% of refinery production, while the overall clean-product yield reached 86%.
The refining business benefited from stronger realized margins and higher volumes, with Phillips 66 attributing much of the improvement to increased market crack spreads.
The company also returned $2.8 billion to shareholders through dividends and share repurchases during the quarter. Total debt declined by $2 billion to $18.5 billion, while net debt fell by $3.8 billion to $12.7 billion.
Phillips 66 is continuing to expand its infrastructure operations while maintaining high utilization across its refining system.
The results demonstrate how tight refined-product markets can translate into unusually strong economics for refiners operating their facilities near full capacity.
The next variables are refining margins, global fuel inventories and whether Phillips 66 can maintain its exceptionally high utilization as energy-market conditions evolve.
