![General view of oil tanks and the Bayway Refinery of Phillips 66 in Linden](https://cloudfront-us-east-2.images.arcpublishing.com/reuters/P7E3K7QPA5LV7NPBFYRXRYFUYM.jpg)
Common view of oil tanks and the Bayway Refinery of Phillips 66 in Linden, New Jersey, U.S., March 30, 2020. REUTERS/Mike Segar/File Picture
Aug 2 (Reuters) – Phillips 66 (PSX.N) reported a 46% fall in second-quarter revenue on Wednesday, the most recent U.S. refiner to sign the hit from a decline in margins from final yr's sky-high ranges when Russia's invasion of Ukraine squeezed gas provides.
The corporate's shares fell 2.7% to $109.04 in afternoon commerce.
Realized margins fell 46.5% to $15.32 per barrel within the second quarter, Phillips mentioned.
Refiners' margins have been beefed up final yr as a rebound in gas demand got here amid a provide crunch brought on by pandemic-era refinery closings and international oil market disruptions from Russia's invasion of Ukraine.
Rivals Valero Power Corp (VLO.N) and Marathon Petroleum (MPC.N) have reported steep declines in quarterly earnings on pressured margins.
Nonetheless, gas demand remained resilient. The April-June quarter is historically one of many yr's busiest intervals as corporations increase gasoline and jet gas output for summer time journey.
Crude utilization price was 93% within the second quarter, larger than 90% a yr earlier, Phillips 66 mentioned, whereas complete processed enter was unchanged year-over-year at 1.9 million barrels per day (bpd).
On an adjusted foundation, the Houston-based refiner's $3.87 per share earnings beat the typical analyst estimate of $3.56, in keeping with Refinitiv knowledge.
“This was a some what combined quarter for Phillips 66,” Edward Jones analyst Faisal Hersi mentioned.
Refining throughput volumes and margins have been higher than anticipated, he mentioned.
Capital expenditure is anticipated to be above the $2 billion annual price range, Phillips 66 mentioned, reflecting about $200 million of further spending on its California Rodeo renewable fuels refinery. The plant is scheduled to start business operations within the first quarter of 2024.
Second-quarter web revenue fell to $1.7 billion, or $3.72 per share, from $3.2 billion, or $6.53 per share, within the year-ago quarter.
Reporting by Arunima Kumar in Bengaluru; Enhancing by Sriraj Kalluvila
: .