Phillips 66 CEO warns of refining, petrochemical earnings volatility from Hormuz disruptions
Phillips 66 CEO Mark Lashier said that refining and petrochemical earnings face greater volatility due to uncertainty from disruptions in the Strait of Hormuz.
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Lashier added that the company has taken about $1 per barrel of cost out of its refining business and is targeting $5.50 per barrel, while costs in California are around $15 a barrel.
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"We actually have improved our yield of high-value products for our refineries, and we've enhanced our utilization, running our refineries at higher rates as we've lowered the cost," he added.
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Lashier noted that the company's significant investment in integration has paid off, allowing it to capitalize on market opportunities.
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The company focused on supplying refined products to the California market, which has been dependent on costly Asian-linked supplies and also delivered North American crude to its East Coast refineries, which rely on the Atlantic Basin, during a period of elevated oil prices.
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The company is well positioned to access Venezuelan crude, Lashier said.
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