Phillips 66 reported a net income attributable to the company of $133 million for the third quarter of 2025, a significant decrease from $346 million in the same period of 2024. For the nine months ending September 30, 2025, net income was $1.5 billion, down from $2.1 billion year-over-year. The decline in profitability was primarily attributed to a $948 million impairment related to the company's equity investment in WRB Refining LP, accelerated depreciation at the Los Angeles Refinery, and lower equity earnings from its joint venture with Chevron Phillips Chemical Company (CPChem). Despite these challenges, improved refining margins and higher volumes partially offset the negative impacts.
Total revenues for the third quarter of 2025 were $34.979 billion, a decrease from $36.163 billion in the prior year. Sales and other operating revenues fell to $34.515 billion from $35.528 billion, driven by lower prices for crude oil and refined products, although this was somewhat mitigated by increased sales volumes. The company's total costs and expenses also decreased to $34.780 billion from $35.750 billion, reflecting a reduction in purchased crude oil and product costs, which dropped by 6% for the quarter.
Strategically, Phillips 66 has been active in acquisitions and divestitures. In April 2025, the company completed the acquisition of Coastal Bend, a natural gas liquids pipeline and fractionation business, for $2.2 billion. Additionally, Phillips 66 announced plans to divest 65% of its equity interest in its Germany and Austria retail marketing business for approximately $1.6 billion, with the transaction expected to close in the fourth quarter of 2025. The company also entered into a definitive agreement to acquire the remaining 50% interest in WRB Refining LP for $1.3 billion, which closed on October 1, 2025.
Operationally, Phillips 66's refining segment faced challenges, with a reported loss of $518 million for the third quarter, compared to a profit of $108 million in the same quarter of 2024. The refining capacity utilization rate was 99%, up from 94% in the previous year, indicating improved operational efficiency despite the financial losses. The Midstream segment, however, showed resilience, generating $697 million in income before taxes, an increase from $644 million in the prior year, driven by higher gathering and processing volumes and improved export margins.
Looking ahead, Phillips 66 aims to maintain financial strength and flexibility while focusing on disciplined growth in its Midstream and Chemicals segments. The company plans to return over 50% of net cash provided by operating activities to shareholders through dividends and share repurchases. With a total debt of $21.8 billion and a debt-to-capital ratio of 44% as of September 30, 2025, Phillips 66 is actively managing its capital structure to support ongoing investments and strategic initiatives.
About Phillips 66
Phillips 66 is an integrated energy company engaged in refining, marketing, midstream transportation, chemicals, and renewable fuels. It operates refineries, pipelines, terminals, and produces petrochemicals, plastics, and renewable fuels. Serving global markets, it emphasizes safety, operational efficiency, and innovation. The company leverages extensive infrastructure, strategic investments, and joint ventures to deliver transportation fuels, chemicals, and renewable products worldwide.
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