Phillips 66 beats quarterly estimates as Iran war boosts US refining margins

Houston, Texas-based Phillips 66 reported an adjusted profit of $9.41 per share for the three months ended June 30, compared with analysts' average estimate of $7.44 per share, according to data compiled by LSEG.

Rivals HF Sinclair, Valero Energy and Marathon Petroleum also reported their highest quarterly net income since 2022.

Shares of Phillips 66 rose 1.3% to $208.50 in premarket trading. Last week, the company's board approved a $10 billion increase to its share repurchase program.

Quarterly adjusted earnings at Phillips 66's renewable fuel segment rose to $544 million, compared with a loss of $133 million a year earlier.

U.S. refiners are beginning to see stronger returns from renewable fuels after years of margin pressure, helped by a recent increase in biofuel blending mandates and a rise in diesel prices linked to the Middle East conflict.

Aug. 5 (Reuters) - Phillips 66 reported a nearly fourfold jump in second-quarter profit on Wednesday, crushing Wall Street estimates, as the Middle East conflict squeezed global fuel supplies and sent U.S. refining margins soaring.

U.S. refiners have been among the biggest beneficiaries of the Iran war, as international buyers have scrambled to secure alternative fuel supplies amid concerns over disruptions to Middle Eastern exports.

The surge in overseas demand has helped push U.S. fuel exports to record highs, particularly for diesel and other refined products.