Houston-based Phillips 66 (NYSE: PSX) announced fourth-quarter 2019 earnings of $736 million, compared with $712 million in the third quarter of 2019.
Excluding special items of $47 million in the fourth quarter, adjusted earnings were $689 million, compared with third-quarter adjusted earnings of $1.4 billion.
The oil producer also announced it returned $810 million to shareholders through dividends and share repurchases.
To quote CEO Greg Garland, “We maintained our strong safety performance and advanced our strategic initiatives during the quarter, but a challenging market environment and turnaround activity impacted our financial results.
“Midstream delivered solid operating and financial performance during the quarter, contributing to record 2019 results for the transportation and NGL businesses. We continued to execute our major growth projects with the initial startup of the Gray Oak Pipeline and are progressing the Sweeny Hub expansion and the Red Oak and Liberty pipelines.”
Midstream fourth-quarter pre-tax income was $405 million, compared with a pre-tax loss of $460 million in the third quarter of 2019.
Midstream results in the third quarter included $900 million of impairments related to Phillips 66’s equity investment in DCP Midstream, LLC
The Chemicals segment reflects Phillips 66’s equity investment in Chevron Phillips Chemical Company LLC (CPChem). Chemicals’ fourth-quarter pre-tax income was $150 million, compared with $227 million in the third quarter.
Shares retreated $1.57, or 1.6%, in Friday’s first hour to $94.81