Phillips 66’s 1Q18 Refining Margin Outlook

Before we proceed with Phillips 66’s (PSX) refining margin outlook for 1Q18, let’s look at PSX’s segment-wise earnings and refining margin in 4Q17. In 4Q17, Phillips 66’s total adjusted net income rose 431% YoY (year-over-year) to $605 million, and its refining earnings rose from -$95 million to $358 million due to wider refining margins and a higher utilization rate. The greatest contributor to Phillips 66’s overall adjusted net income was its refining segment, whose earnings contributed 59% of the company’s total adjusted income in 4Q17. ...