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Did MPC, VLO, ANDV, PSX See Their Earnings Rise in Q1 2018?

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Refining firms’ results in Q1 2018

We saw in the previous part that refining stocks Andeavor (ANDV), Valero Energy (VLO), and Phillips 66 (PSX) surpassed their earnings estimates. However, Marathon Petroleum (MPC) missed its earnings estimate. In this article, we’ll look at additional details of their performances.

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MPC’s Q1 2018 earnings

Marathon Petroleum’s (MPC) reported net income attributable to its shareholders increased to $37.0 million in the first quarter from $30.0 million year-over-year. This increase was due to a rise in its Midstream segment’s operating income. 

In the first quarter, deferred tax benefits stood at $20.0 million due to the company’s strategic transactions. However, MPC’s operating earnings in its Refining and Speedway (or retail) segments fell.

ANDV’s Q1 2018 earnings analysis

In the first quarter, Andeavor’s (ANDV) net earnings attributable to its shareholders rose to $172.0 million from $50.0 million year-over-year. This included $100.0 million of benefits associated with the reduction in RINs (Renewable Identification Numbers) expense from previous years. These earnings included $19.0 million in costs associated with the acquisition and integration of Western Refining.

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Valero’s Q1 2018 earnings review

In the first quarter, Valero’s (VLO) net income attributable to its shareholders rose to $469.0 million from $305.0 million year-over-year. Adjusting for special items such as the blender’s tax credit, VLO’s adjusted earnings stood at $431.0 million. An across-the-board rise in segmental earnings led to the rise in the company’s overall earnings.

PSX’s Q1 2018 earnings

In the first quarter, Phillips 66’s (PSX) adjusted net income attributable to its shareholders rose $512.0 million from $294.0 million year-over-year. The increase in PSX’s adjusted earnings was led by an across-the-board rise in its segmental earnings.

In the first quarter, Phillips 66’s (PSX) Refining segment’s earnings rose from an adjusted loss to adjusted profits year-over-year. PSX’s adjusted income from its Midstream segment doubled year-over-year to $233.0 million in the first quarter. In the first quarter, PSX’s adjusted earnings from its Marketing and Chemical segments increased 23.0% and 15.0%, respectively, year-over-year.

Let’s move to the next part to look at these firms’ post-earnings analyst ratings.

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