Phillips 66 Reports $487.7 Million Net Income in Q1 2025, Down from $748 Million in Q1 2024

Phillips 66 reported a net income of $487.7 million for the first quarter of 2025, a decline from $748 million in the same period of 2024. The company's total revenues and other income decreased to $31.7 billion, down from $36.4 billion year-over-year. This decline was attributed to lower realized refining margins, which were impacted by reduced market crack spreads, as well as decreased volumes and increased costs associated with planned turnaround activities. The company also recorded a significant before-tax gain of $1 billion from the sale of its investment in Coop Mineraloel AG, which partially offset the overall decline in profitability.

In terms of operational metrics, Phillips 66's sales and other operating revenues fell by 15% to $30.4 billion, primarily due to lower prices for refined petroleum products and crude oil. The company reported a 71% decrease in equity earnings from affiliates, largely driven by lower margins from WRB Refining LP and CPChem. Additionally, the company experienced a 12% increase in operating expenses, attributed to higher turnaround and utility costs, and a 57% rise in depreciation and amortization expenses, which included accelerated depreciation related to the planned closure of the Los Angeles Refinery.

Strategically, Phillips 66 has been active in expanding its operations. On April 1, 2025, the company completed the acquisition of EPIC Y-Grade GP, LLC and EPIC Y-Grade, LP for $2.2 billion, enhancing its natural gas liquids pipeline and fractionation capabilities. This acquisition follows the earlier sale of its 49% stake in Coop, which generated $1.2 billion in cash proceeds. The company has also set a capital expenditure budget of $2.1 billion for 2025, focusing on growth primarily within its Midstream segment.

Geographically, Phillips 66's revenues from the United States accounted for $24.2 billion, down from $28.4 billion in the previous year. The company reported a total asset value of $71.8 billion as of March 31, 2025, a slight decrease from $72.6 billion at the end of 2024. The company’s total liabilities also decreased to $43.5 billion from $44.1 billion, reflecting a reduction in short-term debt and other obligations.

Looking ahead, Phillips 66 aims to maintain financial strength and flexibility while focusing on disciplined growth and shareholder returns. The company plans to return over 50% of net cash provided by operating activities to shareholders through dividends and share repurchases. The Board of Directors has declared a quarterly cash dividend of $1.20 per share, reflecting a commitment to a competitive and growing dividend. The company remains focused on optimizing its operations and enhancing its market position in the Midstream and Chemicals sectors, despite the challenges posed by fluctuating market conditions and regulatory environments.