In its Q1 update, published today (May 1, 2020) Phillips 66 was down -2.7 per cent pre-market after beating Q1 earnings estimates. But it reported a GAAP net loss of $2.5b compared with a profit of $204m a year earlier, as it said it had been “hurt by weaker demand for refined products due to COVID-19”.

Its GAAP results include $2.9b in charges, among them a $1.2b impairment charge on the company’s DCP Midstream business, which transports crude oil, natural gas and refined petroleum products.

Elsewhere in the update, Q1 cash flow from operations fell 55 per cent year-on-year to $217m, and cash and cash equivalents of $1.2b were 7 per cent lower than they were a year ago.

The company also reported that it had secured a new $1b, 364-day term loan facility in the quarter, which was fully drawn as of March 31. As a result, it then increased the size of the facility to $2b, with $1b of capacity remaining undrawn.

Phillips’ refining unit posted a Q1 pre-tax loss of $2.3b, which compared to a pre-tax income of $345m in Q4 of 2019.

The company’s midstream business posted a Q1 pre-tax loss of $702m, compared with pre-tax income of $405m in Q4.

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1st May 2020