Phillips 66 in Talks for Non-Core Assets Sale: CEO

Reuters, January 4, 2024

U.S. refiner and petrochemical manufacturer Phillips 66 (PSX.N) is in active discussions for a sale of its non-core assets, Chief Executive Mark Lashier said on Thursday during an energy conference.

Last year, the company said it would monetize $3 billion in non-core assets in 2024 as part of a plan to boost returns by cutting costs and assets.

Lashier, however, said there was no fixed timeline when such potential sales may occur.

"We don't have (a) sense of urgency... It's really going to be a function of whether someone puts a greater value on these assets than we do."

The refiner has lagged behind its rivals at a time when the industry benefited from higher fuel demand and saw a surge in margins. The company has also come under fire from activist investment firm Elliott Investment Management for its refining operations.

About the refining business, Lashier said inventories continue to be low, but he sees strength going into next year.

The CEO was also optimistic about the long-term prospects of CP Chemical, a 50/50 joint venture with Chevron (CVX.N), that some Wall Street analysts have pegged as a potential divestiture.

"We still have good, strong conviction around the long-term benefits of chemicals business but we did hit bottom in 2023... we see fundamentals continue to improve."

(Reporting by Mrinalika Roy and Laura Sanicola; Editing by Shilpi Majumdar)

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