Houston-based Phillips 66 saw its second-quarter earnings fall 50 percent as refining margins are squeezed by a growing glut of gasoline in storage.
Phillips 66 reported a $499 million profit for the quarter, just less than half of what it reported in the same period in 2015, a particularly strong year for refiners.
Almost all of the decrease was attributed to declining refining profits. Phillips 66 posted $152 million in refining profits, compared with $604 million in the second quarter of 2015. Phillips 66’s chemicals and marketing businesses both made more money than refining in the quarter.
Still, Phillips 66 refineries achieved record-breaking 100 percent utilization rates for the quarter to churn out as much cheap fuel as they could. The company, however, couldn’t sell the products at the same margins as it did last year.