Phillips 66 (NYSE: PSX) reported its highest quarterly profit on record on Wednesday, beating Wall Street estimates as soaring refining margins amid Middle Eastern and Russian fuel supply disruptions delivered windfall earnings for U.S. refiners.
The Houston-based company reported third-quarter net earnings of $5.62 billion, compared with just $133 million a year earlier.
Adjusted earnings reached $14.08 per share, comfortably exceeding analysts’ consensus estimate of $11.73, according to LSEG data.
The company’s refining business was the standout performer, with adjusted pre-tax earnings surging to $6.06 billion from $430 million a year earlier. Realized refining margins more than tripled to a record $38 per barrel, compared with $12.15 in the third quarter of 2025.
Phillips 66 operated its refineries at 98% utilization during the quarter, achieving a third-quarter record distillate yield of 41%.
The earnings surge reflects a broader boom in refining profitability as disruptions to Middle Eastern fuel exports and damage to Russian refining infrastructure have tightened global supplies of diesel and other petroleum products.
As previously reported by Oilprice.com, Phillips 66 had already seen refining margins more than double to $24.08 per barrel in the second quarter, helping lift quarterly profits to $3.85 billion.
The latest results underscore how dramatically refining profitability has strengthened since then.
Phillips 66 also returned $2.8 billion to shareholders through dividends and share repurchases during the third quarter, while reducing net debt by $3.8 billion to $12.7 billion.
Meanwhile, the company’s Coastal Bend expansion remains on track to reach 350,000 barrels per day of capacity in early 2027.
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Source: finance.yahoo.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.
