Although refiners have had to deal with soaring crude oil costs, demand for gasoline and jet fuel has exploded in the last three months of 2021 due to the opening of domestic and international travel to the United States. Products supplied by refineries jumped in the second week of December to reach 23.2 million barrels per day. (Chart: US demand for refined products returns to pre-pandemic levels,
-pandemic US demand for refined products returns to pre-pandemic levels,
Phillips 66’s refining business posted adjusted pre-tax profit of $404 million in the third quarter, compared to an adjusted pre-tax loss of $1.1 billion last year, thanks to higher margins and volumes.
Shares of Phillips 66 were up slightly at $86.12 in choppy trading ahead of the market.
The Houston, Texas-based company said its realized refining margins in the fourth quarter increased to $11.60 per barrel from $8.57 per barrel in the third quarter.
Its adjusted net income of $2.94 per share for the quarter ended Dec. 31 was well above analysts’ average estimate of $1.95, according to Refinitiv data.
The company’s results echo those of rival Valero Energy Corp, which on Thursday reported quarterly earnings well above market estimates.