UPDATE: Phillips 66 Posts Downbeat Q2 Earnings

Phillips 66

reported downbeat second-quarter earnings. The Houston, Texas-based company posted a quarterly profit of $863 million, or $1.51 per share, versus a year-ago profit of $958 million, or $1.53 per share. The year-ago quarter included asset sale gains of $23 million. However, analysts were projecting a profit of $1.70 per share. Its earnings in refining segment declined 14% to $390 million, while chemicals segment earnings jumped 79% to $324 million. Midstream earnings fell to $108 million from $188 million, while Marketing and Specialties earnings rose to $162 million from $137 million. Greg Garland, chairman and CEO of Phillips 66 said, "We continued our disciplined approach to capital allocation. We increased our dividend in the second quarter and the board recently approved an additional $2 billion share repurchase program. In July, we increased our 2014 capital budget to fund acquisitions in our Midstream and Specialties businesses, and to support organic growth projects." Phillips 66 shares fell 1.42% to $81.30 in pre-market trading.