Phillips 66 (NYSE: PSX), a diversified energy manufacturing and logistics company, announces a first-quarter 2020 loss of $2.5 billion, compared with earnings of $736 million in the fourth quarter of 2019. Excluding special items of $2.9 billion in the first quarter of 2020, primarily impairments related to goodwill and the company’s investment in DCP Midstream, LLC, adjusted earnings were $450 million, compared with fourth-quarter 2019 adjusted earnings of $689 million.
“Phillips 66 employees have stepped up to the unprecedented challenges of the current environment to maintain safe operations, ensure business continuity and execute our strategy,” said Greg Garland, chairman and CEO of Phillips 66. “Our top priorities are protecting the health and safety of our employees, supporting their families and our communities, and ensuring the financial and operating strength of the company. We remain focused on providing the critical energy products and services that are essential to the global economy.”
“We suspended share repurchases and are reducing capital spending and operating costs. We also secured a new $2 billion term loan facility and completed $1 billion in bond issuances. Refining reduced production in response to lower product demand and weak margins. These prompt actions enhance liquidity, support the dividend and protect our strong investment grade credit rating. We are committed to maintaining our strong balance sheet and a disciplined approach to capital allocation.”
“During the first quarter, five of our refineries were recognized by AFPM for exemplary 2019 safety performance. This strong safety performance continued in the first quarter with a record-low injury rate. Our first-quarter financial results benefited from our diversified portfolio, with strong contributions from the Midstream and Marketing businesses. In Midstream, our NGL business achieved record results, and the Gray Oak Pipeline recently commenced full service. In Chemicals, CPChem’s O&P business ran at 98% utilization, supported by strong demand. We returned $839 million to shareholders through $443 million of share repurchases and $396 million of dividends.”
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SOURCE: Phillips 66
