Phillips 66's profit misses on lower refining margins
(Reuters) -- US independent oil refiner Phillips 66 posted a lower-than-expected quarterly profit as margins were squeezed by the narrowing gap between US crude prices and globally-traded Brent crude, to which prices of refined products are tied.
The company's shares were down 1.3% at $80 in light premarket trading on Friday.
Phillips posted an adjusted loss from its refining business of $95 million in the fourth quarter ended Dec. 31, compared with adjusted earnings of $376 million a year earlier.
Refining margins were also hurt by higher costs and lower volumes due to maintenance-related activities, Phillips said.
The company's worldwide crude utilization rate was 93%, down from 97% in the third quarter.
Consolidated earnings fell to $163 million, or 31 cents per share, in the quarter from $650 million, or $1.20 per share, a year earlier.
The company reported adjusted earnings of 16 cents per share, well below analysts' average estimate of 40 cents, according to Thomson Reuters I/B/E/S.
Reporting by Arathy S Nair in Bengaluru; Editing by Anil D'Silva
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