HOUSTON (AP) — Phillips 66 said Wednesday that its fourth-quarter net income tumbled by more than half, pulled down by hefty charges related to a refinery investment.
But the company's adjusted earnings beat Wall Street expectations, helped by a surge in refining profits, and its shares rose more than 4 percent in morning trading.
The company, which was spun off from ConocoPhillips in May, earned $708 million, or $1.11 per share, down from $2.01 billion, or $3.17 per share, in the year-ago quarter.
The recent quarter included $580 million in charges related to the refinery investment, while the year-ago quarter included a $1.66 billion gain related to asset sales.
Excluding those and other items, the company posted an adjusted profit of $1.31 billion, or $2.06 per share, up from an adjusted $379 million, or 60 cents per share.
Analysts, on average, expected earnings of $1.67 per share, according to FactSet.
Revenue fell 12 percent to $44.67 billion from $50.45 billion.
Phillips said it got a boost during the recent quarter from strong refining and chemicals profitability. Excluding charges related to the refinery investment and other items, the company's profits from refining jumped to $916 million from just $27 million in the 2011 quarter.
For the full year, Phillips earned $4.12 billion, or $6.48 per share, down from $4.78 billion, or $7.52 per share, in 2011. Revenue fell to $182.92 billion from $200.61 billion.
Phillips shares rose $2.03, or 3.4 percent, to $61.91 in morning trading after rising as high as $62.91, its highest level since its spinoff.