Updates Shares in Paragraph in Paragraph 4, Adds Analyst Comment in Paragraph 5
By Sourasis Bose
April 26 (Reuters) - Phillips 66 Psx.n Missed Quarterly Profit Estimates Due to a Decline in Refining Margins Led by Underperformance at Its Gulf Coast Operations.
Refiner Margins Have Scaled Back From the Peaks Achieved After Russia's Invasion of Ukraine in 2022, Amid a Rise in Global Refining Capacity That Has Led to a Drop in Fuel Prices.
The Company Said Its Realized Margins Slumped About 47% to $10.91 per Barrel in the First Quarter From a Year Earlier, Led by Nearly a 50% Decline in Gulf Coast Margins.
Shares of the Refiner Were Down Nearly 3% on Friday.
"the Market Was Likely Expecting a Noisy West Coast Refining Result Given Rodeo Startup, Though Margins Were Also Weaker Than Forecast in Other Regions," TD Cowen Analysts Said in a Note.
Phillips' Market Capture, a Measure of Refining Profit Compared With Industry Benchmarks, Fell to 69% in the Quarter From 93%, Even as Its Crude Capacity Utilization Was Above Last Year at 92%.
Activist Investor Elliott, Which Revealed a $1 Billion Stake in Phillips Last Year, Has Been Pushing the Company to Address Underperformance in Refining and Speed up Cost Cuts.
Phillips CEO Mark Lashier Said, "Our Results Were Affected by Maintenance That Limited Our Ability to Make Higher-Value Products."
Although, Rival Valero Vlo.n Topped Profit Estimates on Thursday Despite Routine Maintenance Work at Its Refineries.
Lashier Said the Heavy Maintenance It Saw in the First Quarter Was Largely Complete.
Phillips 66 Said It Has Launched a Sales Process of Its Retail Marketing Business in Germany and Austria as Part of Its Plan to Divest Non-Core Assets of About $3 Billion.
The Houston-Based Company Reported Adjusted Earnings of $1.90 per Share for the Three Months Ended March 31, Compared With Analysts' Estimates of $2.17 per Share, According to Lseg Data.
(Reporting by Sourasis Bose in Bengaluru; Editing by Shounak Dasgupta and Shinjini Ganguli)