The following is a summary of the Phillips 66 (PSX) Q1 2024 Earnings Call Transcript:
Financial Performance:
Phillips 66 reported adjusted earnings of $822 million, or $1.90 per share, for Q1 2024.
Operating cash flow, excluding working capital was $1.2 billion.
The company distributed $1.6 billion to shareholders through $1.2 billion of share repurchases and $448 million of dividends.
Capital spending for the quarter was $628 million, and the adjusted effective tax rate was 21%.
The net debt to capital ratio was 38%.
Despite a loss in the first quarter for the Rodeo Renewed Project, Phillips 66 expects progression towards profitability with optimized performance over the year.
Business Progress:
The firm returned significant cash to shareholders and made progress on strategic priorities, despite being impacted by maintenance limiting its ability to create higher value products.
Phillips 66 plans to divest its retail marketing business in Germany and Austria, distribute almost $10 billion through share repurchases and dividends by the end of 2024, and has announced a 10% increase in its quarterly dividend.
Significant advancement was made with the startup of the Rodeo Renewable Energy Complex, expected to produce 50,000 barrels of renewable fuels per day by the end of Q2 2024.
Cost reductions and sustaining capital efficiencies have realized $1.24 billion in savings, with an additional $1 billion of cost reductions projected for 2024.
The firm looks forward to becoming a significant supplier in the sustainable aviation fuel (SAF) market from Q3 2024, with the ability to produce about 10,000 barrels per day of renewable jet fuel.
More details: Phillips 66 IR
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