Phillips 66 has reported a significant loss for the first quarter of 2025, highlighting challenges in its refining division. The company recorded a net loss of $937 million in its refining unit, a drastic change from the $216 million profit it had seen a year ago. This downturn was primarily driven by a 38% decline in realized refining margins, which fell to $6.81 per barrel, coupled with increased maintenance costs.

Maintenance operations significantly impacted Phillips 66's recent performance, with turnaround expenses more than doubling to $270 million. As a result, refinery utilization plummeted to 80%, down from 92% in the previous year. The extensive maintenance efforts are crucial to the company’s operations but have come amidst a broader industry context of tightening margins and competitive pressures.

CEO Mark Lashier addressed the loss by citing a challenging macroeconomic environment and the substantial scale of spring maintenance activities. Despite the immediate financial setback, Lashier expressed optimism about future profitability. According to Reuters, shares of Phillips 66 fell nearly 2% following the earnings announcement, reflecting investor concerns shared across the sector as Peers like Valero Energy reported similar financial strains.