HOUSTON (AP) — Phillips 66 said Wednesday that net income rose 13.7 percent in the second quarter as its refineries and chemical plants generated stronger profit margins.
The Houston refining and pipeline company, which split from ConocoPhillips in May, owns 15 refineries in the U.S., Europe and Malaysia.
It said it generated higher profits per barrel in the period as crude prices dropped. Worldwide, the company said it earned an average of $12.56 per barrel it made of gasoline and other petroleum products. That compares with $9.49 per barrel in the same period last year.
Revenues declined, however, as the company cut back on production by 6.6 percent.
Phillips 66 reported net income of $1.18 billion, or $1.86 per share, in the April-June period, up from $1.04 billion, or $1.64 per share, a year earlier. Excluding asset sales, impairments and other special items, Phillips 66 said it earned $2.23 per share.
Revenue fell by 10.5 percent to $47.8 billion.
In the second quarter, Phillips 66's refining and marketing business increased profits 53 percent and its chemicals business increased profits by 8.9 percent. The company's pipelines business posted a loss of $91 million as it booked an impairment charge related to its Rockies Express Pipeline business.
Shares rose 81 cents, or 2.1 percent, to $38.41 in midday trading after trading as high as $40.18 earlier in the session, its highest since becoming a public company.