Phillips 66 Reports $877 Million Net Income in Q2 2025, Down from $1.015 Billion Last Year

Phillips 66 reported a net income attributable to the company of $877 million for the second quarter of 2025, a decrease from $1,015 million in the same period of 2024. For the first half of 2025, net income was $1.364 billion, down from $1.763 billion year-over-year. The company's total revenues and other income for the second quarter were $33.522 billion, a decline of 14% compared to $38.911 billion in the prior year. This decrease was primarily driven by lower sales and operating revenues, which fell to $33.323 billion from $38.129 billion, largely due to reduced crude oil and refined product prices.

In terms of operational performance, Phillips 66's refining segment saw a significant impact from accelerated depreciation related to the planned idling of its Los Angeles Refinery, which is set to cease operations in late 2025. The company recorded $4.225 million in impairments during the second quarter, compared to $30.390 million in the same period last year. Additionally, equity earnings from affiliates dropped sharply, with a 69% decrease in the second quarter, primarily due to lower earnings from Chevron Phillips Chemical Company (CPChem) and other joint ventures.

Strategically, Phillips 66 completed the acquisition of Coastal Bend, which includes long-haul natural gas liquids pipelines and fractionation facilities, for $2.2 billion in April 2025. The company also announced plans to divest 65% of its equity interest in its Germany and Austria retail marketing business for approximately $1.6 billion, retaining a 35% non-operating interest through a new joint venture. These moves are part of Phillips 66's ongoing strategy to optimize its asset portfolio and focus on growth in its Midstream and Chemicals segments.

Operationally, the company reported a total of 406.8 million weighted-average common shares outstanding for the second quarter, down from 422.9 million in the previous year. Phillips 66's total assets increased to $75.942 billion as of June 30, 2025, compared to $72.582 billion at the end of 2024. The company ended the quarter with $1.052 billion in cash and cash equivalents and $3.7 billion in total committed capacity available under its credit facilities. Looking ahead, Phillips 66 aims to maintain financial strength and flexibility while focusing on disciplined growth and shareholder returns, targeting to return over 50% of net cash provided by operating activities to shareholders through dividends and share repurchases.