Shares of Phillips 66 (NYSE: PSX) fell more than 5% by 12:30 p.m. ET on Tuesday. Weighing on the refining company's stock price were its lackluster fourth-quarter results. 

Phillips 66 reported $1.9 billion, or $4 per share, of adjusted earnings for the fourth quarter. That missed analysts' consensus estimate by $0.35 per share. While market conditions were strong in the quarter, they weren't as robust as in prior periods. That impacted the earnings of its chemicals and refining segments. 

Adjusted pre-tax income from its chemicals segment declined from $135 million in the third quarter to $52 million in the fourth quarter. Driving the decline were lower margins and volumes. Meanwhile, refining earnings fell from nearly $2.9 billion to around $1.6 billion due to lower margins. Its realized margin plunged from $26.87 per barrel in the third quarter to $19.73 per barrel in the year's final period. Weighing on the refining margin was a lower crack spread -- the difference between the price it buys crude oil and sells refined products -- and weaker refined product prices. 

Continue reading

Source Fool.com