At the end of the fourth quarter, Phillips 66 achieved results that were above market expectations, supported by a sustained recovery of refining margins in the United States.
Indicators favor Phillips 66’s market position
In this context, the operating environment showed signs of normalization after a complex 2024 for the industry, with refining differentials starting to move away from multi-year lows.
On the other hand, the company’s realized margin increased to US$12.48 per barrel, allowing the refining business to return to an adjusted profit, following the losses seen a year earlier.
Capacity utilization remained close to the technical maximum, reflecting stable operations and better absorption of fixed costs within the group’s plants.
In parallel, Phillips 66 advanced its financial strategy by reducing debt during the quarter, while assuming higher reorganization expenses related to its portfolio adjustment and operating efficiency.
Finally, the sectoral scenario points to additional relief in raw material costs, driven by the partial reactivation of Venezuelan crude oil flows. Venezuelan crude flows to U.S. Gulf refineries to refineries in the U.S. Gulf, a factor that could support margins in the short term.
Source and photo: Phillips 66