The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Manav Gupta - UBS Investment Bank, Research Division - Analyst
: I just wanted to first touch base a little bit on the Chemicals earnings seeing a strong rebound. It really helps you out. I think you
have a $0.10 improvement in ethylene chain margin. So just trying to understand from you, from the demand point on the Chemicals
side, what are you seeing? And should we expect a further recovery in chemical margins, given the strong global demand?
Question: Manav Gupta - UBS Investment Bank, Research Division - Analyst
: Perfect, guys. My quick follow-up is if you can get some updates on your -- the progress you are making on your renewable diesels
project. And hopefully, it starts up by year-end or early 2024.
Question: Manav Gupta - UBS Investment Bank, Research Division - Analyst
: That's a very encouraging update.
Question: John Macalister Royall - JPMorgan Chase & Co, Research Division - Analyst
: So my first one is on OpEx. Can you talk about OpEx trends in Refining into the second quarter? It's an item that you don't guide to,
but 1Q ticks down, presumably on lower natural gas prices and despite higher maintenance. In 2Q, you'll have an even lower price
REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us
consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies.
MAY 03, 2023 / 4:00PM, PSX.N - Q1 2023 Phillips 66 Earnings Call
presumably and less maintenance, and of course, your efforts around costs. So any color on expectations on the Refining OpEx side
in 2Q and going forward?
Question: John Macalister Royall - JPMorgan Chase & Co, Research Division - Analyst
: Great. And then just on the share buyback in 1Q. You paced a bit ahead of your quarterly pace that you need to hit your longer-term
guidance, but 2Q does have an outflow from the acquisition. So should we be expecting a slowing in 2Q? And then further, if the
environment were to continue to deteriorate from a crack's perspective, could that impact your pacing as well?
Question: Paul Cheng - Scotiabank Global Banking and Markets, Research Division - Analyst
: Mark, just 2 questions. First, with the new California windfall profit penalty, that being passed, how does that change your view? Or
does it change your view about your California asset, both in the Refining and Marketing?
Question: Paul Cheng - Scotiabank Global Banking and Markets, Research Division - Analyst
: Mark, do you think you or the industry is going to challenge them in court, because I'm not sure how -- yet the industry has not been
proven to have done anything wrong, why that will be slapped with a penalty?
Question: Paul Cheng - Scotiabank Global Banking and Markets, Research Division - Analyst
: Okay. The second question, I think this is for Kevin. Kevin, you mentioned about in the Refining capture in your presentation, in the
Other columns, it's a very big positive. And I actually went back to the last, say, 4 or 5 quarters. I think mainly without exception, that
column is always a negative, yet that is helping your margin instead of, say, benefiting like what we've seen in this quarter. I think
you sort of talked a bit in your prepared remarks. Can you elaborate a little bit more that what that column really represented and
why we have seen such an improvement and whether those is sustainable?
|
