Phillips 66 reported a slight improvement in cutting losses as its fourth quarter losses totaled $539 million, down from the $799 million reported lost in the third quarter of 2020.
The company said excluding special items of $32 million, it had an adjusted loss of $507 million. In the third quarter, its adjusted loss was $1 million.
“2020 was a year of unprecedented challenges,” said Greg Garland, chairman and CEO of Phillips 66. ” “We took early, decisive steps to reduce costs and capital spending, secure additional liquidity and suspend share repurchases.”
Phillips 66 generated $639 million in cash from operations during the fourth quarter, including $400 million of cash distributions from equity affiliates. Excluding working capital impacts, operating cash flow was $236 million. The company issued $1.75 billion of senior notes and repaid $500 million of its term loan in the quarter.
During the quarter, Phillips 66 funded $506 million of capital expenditures and investments and $393 million in dividends.
Financial wise, the company had $7.8 billion in liquidity by the end of December with $2.5 billion in cash and cash equivalents and $5.3 billion of total committed capacity under its revolving credit facilities.
Consolidated debt totaled nearly $16 billion including $3.9 billion at Phillips 66 Partners
“Looking ahead, we are optimistic about the impact of the COVID-19 vaccines on the economic recovery, as well as opportunities for value creation across our portfolio, including investments in a lower-carbon future,” added Garland.
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