Phillips 66 cuts losses but it’s still losing money
Phillips 66 is making strides in cutting costs but the Texas company with operations throughout Oklahoma still reported a second-quarter loss of $141 million or 33 cents a share. It was less than the $2.5 billion the company lost in the first quarter of 2020.
The company’s adjusted loss for the second quarter was $324 million or 74 cents a share even after it generated $764 million of operating cash flow. Its adjusted earnings in the first quarter had been $450 million.
“The global pandemic has presented challenges unlike any we have seen before,” said Greg Garland, chairman and CEO of Phillips 66. “Our second-quarter results reflect the disruption in refined product demand from COVID-19 and weak margins across our businesses.”
Still, the company reported it issued $2 billion in senior notes during the quarter and increased its term loan capacity by $1 billion. It also launched full operations of its Gray Oak pipeline and reached a milestone at the South Texas Gateway Terminal with the first export cargo loaded in July. Phillips 66 also recently acquired 95 sites in a U.S. West Coast retailing marketing joint venture.
One of the firm’s areas of operations, refining, had a second-quarter pre-tax loss of $878 million compared with a pre-tax loss of $2.3 billion in the first quarter of 2020. The refining results in the second quarter included $26 million of pension settlement expense while the first-quarter results included $1.8 billion goodwill impairment.
Phillips 66 has a refinery in Ponca City, Oklahoma.
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