Jan 28 (Reuters) - Phillips 66 posted quarterly
earnings that powered past Wall Street estimates on Friday, as
the U.S. refiner capitalized on mounting demand for fuel due to
a loosening up of coronavirus restrictions.
Although refiners had to deal with surging crude oil costs,
gasoline and jet fuel demand rocketed in the last three months
of 2021 as domestic and international travel opened up in the
United States. Products supplied by refineries surged in the
second week of December to 23.2 million barrels per day.
Tudor, Pickering, Holt & Co (TPH) analysts said in a note
that Phillips 66's earnings mostly benefited from refining and
Better margins in clean products such as low-emission fuels,
favorable inventory impacts and cheaper renewable identification
numbers - credits received or traded for the blending of ethanol
into fuel - helped drive Phillips 66's refining profits, TPH
Phillips 66's refining business posted an adjusted pre-tax
income of $404 million in the fourth quarter, compared with an
adjusted pre-tax loss of $1.1 billion a year earlier, helped by
higher margins and improved volumes.
Shares in Phillips 66, which went up as much as 4% earlier
in the session, were last down marginally at $85.49 in choppy
The Houston, Texas-based company said its fourth-quarter
realized refining margins rose to $11.60 per barrel from $8.57
per barrel in the third quarter.
Its adjusted net income of $2.94 per share for the quarter
ended Dec. 31 handily beat analysts' average estimate of $1.95,
according to Refinitiv data.
The company's results echo that of rival Valero Energy Corp
, which on Thursday posted quarterly earnings well above
(Reporting by Shariq Khan and Rithika Krishna in Bengaluru;
Editing by Ramakrishnan M.)