Phillips 66 Stock Falls After Sharp Drop In Q4 Profit, Retail Remains Bearish

Phillips 66’s (PSX) shares fell 1.2% on Friday after the company reported a 98% drop in quarterly profit while Trump’s tariff threats on crude oil imports loomed.

The refiner reported fourth-quarter net earnings of $8 million, or $0.01 per share, compared with $346 million, or $0.82 per share in profit, last year.

On an adjusted basis, it reported a loss of $0.15 per share, compared to a profit of $2.04 per share in the year-ago quarter. Analysts, on average, were expecting it to post a loss of $0.23 per share.

Phillips 66’s refining segment posted a loss of $775 million, hurt by a slump in margins and depreciation costs related to the closure of its Los Angeles refinery.

On Friday, oil majors Exxon Mobil and Chevron reported declining quarterly earnings due to weak refining results.

U.S. refiners' earnings could be further hit if the Trump administration puts 25% tariffs on Canadian crude oil imports.

Canadian crude oil trades at a discount compared to West Texas Intermediate (WTI) oil, which helps boost refiner margins. Phillips 66 is the largest importer of Canadian crude in the U.S.

The Houston-based company’s midstream earnings rose to $708 million, compared with $672 million in the third quarter.

Phillips 66’s west coast margins rose sequentially to $5.74 per barrel from $4.34 per barrel.

However, its worldwide refining margin fell to $6.08 per barrel, compared with $8.31 per barrel in the previous quarter.

Retail sentiment on Stocktwits stayed at ‘bearish’ (30/100) territory while retail chatter remained ‘extremely low.’

Rival Valero Energy had also posted a profit drop but beat the Street estimate on Thursday.

Over the past year, Phillips 66 shares have fallen 17.2%.

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