Phillips 66 profit tops estimates on surge in refining margins

(Reuters) - Independent U.S. refiner Phillips 66 (NYSE: PSX) on Friday posted a quarterly profit that handily beat analysts' estimates, boosted by soaring refining margins in the aftermath of Hurricane Harvey.

Hurricanes have battered the Texas region since late August, sapping demand for crude oil and destroying gasoline lines in various parts of the U.S. Southeast and Midwest.

Phillips 66's third-quarter refining margins climbed 24 percent to $10.49 per barrel on higher distillate and gasoline margins.

The strong margins mirrored those posted by smaller rivals Marathon Petroleum Corp (NYSE: MPC) and Valero Energy Corp (NYSE: VLO) on Thursday.

Houston-based Phillips 66's consolidated earnings rose to $823 million, following higher sales in its refining, chemicals and midstream businesses.

Adjusted earnings rose to $858 million, or $1.66 per share, in the third quarter ended Sept. 30, from $556 million, or $1.05 per share, a year earlier.

Analysts' had expected the company to earn $1.57 per share, according to Thomson Reuters I/B/E/S.

Phillips 66 cut its 2017 capital budget by $700 million to $2 billion after delaying its final investment in a project.

The company's shares were little changed in premarket trading.

(Reporting by Yashaswini Swamynathan in Bengaluru; Editing by Martina D'Couto)

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