Before the bell on Wednesday oil and natural gas producer Phillips 66 (PSX) saw a decline in fourth quarter profits, but adjusted net beat the Wall Street view. The company also approved an increase to its annualized dividend.
The Houston, Texas-based company said its fourth quarter profit was $708 million, or $1.11 per share, down from $2.01 billion, or $3.17 per share, earned a year earlier. Excluding various one-items, earnings were $2.06 per share. The adjusted EPS beat the analyst view of $1.68, according to Thomson Reuters.
The company did benefit from stronger refining and chemical margins as well as strong production of shale crude. However, a $564 million investment write-down, weaker revenue, and the negative impact of Superstorm Sandy drove down profits.
Revenue was down -11% to $44.67 billion, which missed the analyst view of $46.03 billion.
Phillips 66 board approved a +25% increase to its annual dividend, raising it from $1 to $1.25 in 2013. The company also added $1 billion to its share repurchasing plan.
Phillips 66 shares were up $2.84, or +4.74%, during morning trading on Wednesday. The stock is up +91.58% since it was spun off from ConocoPhillips in May of 2012.
The Bottom Line
Shares of Phillips 66 (PSX) have a dividend yield of 1.67% based on last night’s closing price of $59.88.
Phillips 66 (PSX) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.