Name: Phillips 66 (NYSE:PSX) | Income Statement
Creator: Stock Analysis on Net

Income Statement

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

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Phillips 66, consolidated income statement

US$ in millions

12 months ended:	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
Sales and other operating revenues	107,293)	111,461)	102,354)	84,279)	98,975)
Purchased crude oil and products	(95,529)	(97,930)	(79,409)	(62,468)	(73,399)
Operating expenses	(5,074)	(4,880)	(4,699)	(4,275)	(4,294)
Cost of operating revenues	(100,603)	(102,810)	(84,108)	(66,743)	(77,693)
Excise taxes on sales of petroleum products	—)	—)	(13,054)	(13,381)	(13,780)
Gross profit	6,690)	8,651)	5,192)	4,155)	7,502)
Selling, general and administrative expenses	(1,681)	(1,677)	(1,695)	(1,638)	(1,670)
Depreciation and amortization	(1,341)	(1,356)	(1,318)	(1,168)	(1,078)
Impairments	(861)	(8)	(24)	(5)	(7)
Taxes other than income taxes	(409)	(425)	(408)	(307)	(297)
Accretion on discounted liabilities	(23)	(23)	(22)	(21)	(21)
Operating income	2,375)	5,162)	1,725)	1,016)	4,429)
Equity in earnings of affiliates	2,127)	2,676)	1,732)	1,414)	1,573)
Net gain on dispositions	20)	19)	15)	10)	283)
Interest income	43)	45)	31)	18)	27)
Gain on consolidation of business	—)	—)	423)	—)	—)
Other, net	76)	16)	67)	56)	91)
Other income	119)	61)	521)	74)	118)
Interest and debt expense	(458)	(504)	(438)	(338)	(310)
Foreign currency transaction gains (losses)	(5)	31)	—)	15)	(49)
Income before income taxes	4,178)	7,445)	3,555)	2,191)	6,044)
Income tax (expense) benefit	(801)	(1,572)	1,693)	(547)	(1,764)
Net income	3,377)	5,873)	5,248)	1,644)	4,280)
Net income attributable to noncontrolling interests	(301)	(278)	(142)	(89)	(53)
Net income attributable to Phillips 66	3,076)	5,595)	5,106)	1,555)	4,227)

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

Revenue exhibited significant volatility between 2015 and 2019, declining in 2016 before peaking at 111.4 billion USD in 2018 and receding slightly in 2019. This fluctuation aligns with the movements in the cost of operating revenues, which remained the primary driver of expense, consistently absorbing a substantial portion of total sales.

Operating Profitability: Operating income experienced a sharp decline from 4.4 billion USD in 2015 to a low of 1.0 billion USD in 2016. While a recovery occurred in 2018, reaching 5.1 billion USD, a subsequent drop to 2.3 billion USD in 2019 was observed. This volatility was further impacted by a significant impairment charge of 861 million USD in 2019, which was substantially higher than the minimal impairments recorded in the preceding four years.
Gross Margin and Expense Management: Gross profit remained inconsistent, fluctuating between a low of 4.1 billion USD in 2016 and a high of 8.6 billion USD in 2018. Despite the volatility in top-line revenue and gross profit, selling, general, and administrative expenses remained remarkably stable, consistently hovering around 1.6 billion USD annually, suggesting a fixed cost structure for corporate overhead.
Non-Operating Contributions: Equity in earnings of affiliates served as a critical and consistent source of income, contributing between 1.4 billion USD and 2.6 billion USD annually. These affiliate earnings provided a vital cushion to the bottom line, often representing a significant percentage of the total income before taxes, particularly during years of lower operating income.
Net Income and Tax Anomalies: Net income attributable to the company showed high variance, ranging from 1.5 billion USD in 2016 to 5.5 billion USD in 2018. A notable anomaly occurred in 2017, where the company recorded an income tax benefit of 1.6 billion USD rather than an expense, which significantly inflated the net income relative to the operating performance of that year.
Debt and Interest Obligations: Interest and debt expenses showed a general upward trend from 310 million USD in 2015 to a peak of 504 million USD in 2018, before declining slightly to 458 million USD in 2019. These costs remained manageable relative to the overall scale of operations and total income.

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