Oil refiner Phillips 66 (NYSE: PSX) reported fourth-quarter and full-year 2016 earnings before markets opened Friday morning. The company posted adjusted diluted earnings per share (EPS) of $0.16 compared with EPS a year ago of $1.31. Quarterly revenues totaled $23.4 billion, compared with revenues of $21.89 billion in the fourth quarter of 2015. The consensus estimates called for EPS of $0.40 on revenues of $22.5 billion.

For the full year, Phillips 66 reported EPS of $2.82 and revenues of $85.78 billion, compared with EPS of $7.67 in 2015 on revenues of $100.95 billion. Analysts expected EPS of $3.09 and revenues of $86.27 billion.

On a GAAP basis, Phillips 66 posted quarterly EPS of $0.31 on adjusted income of $83 million. Adjusted EBITDA totaled $650 million, down from $1.62 billion in 2015. Refining contributed $100 million to adjusted EBITDA, down from $786 million last year and down from $457 million in the third quarter of 20164.

The company’s refining segment posted an adjusted loss of $95 million in the fourth quarter that Phillips 66 attributed to lower realized margins, mainly the result of lower crack spreads and refined product price realizations, added to higher costs and lower volumes due to turnaround activity. In the fourth quarter of 2015, Phillips 66’s refining segment posted adjusted net income of $376 million. For the full year 2015, net refining income totaled $2.53 billion, compared with 2016’s total of $277 million.

The company did not offer guidance in its earnings release, but consensus estimates call for first-quarter EPS of $0.98 on revenues of $22.91 billion. For 2017, EPS is forecast at $5.34 on revenues of $109.21 billion.

CEO and Chairman Greg Garland said:

During 2016, we delivered strong operating performance, advanced our growth projects, managed costs, and rewarded our shareholders. … We expect to generate additional free cash flow and create shareholder value as we complete major growth projects in 2017. Our portfolio of refining, midstream, chemicals and marketing assets positions us to capture opportunities across the value chain. We remain committed to operating excellence and growing our higher-valued businesses, while maintaining a strong balance sheet and disciplined capital allocation.

Capital spending in 2016 totaled $2.8 billion, and the company announced in December a capex total of $2.7 billion for 2017. Including spending at equity affiliates, total 2017 capex is forecast at $3.8 billion.

Shares of Phillips 66 closed up 0.3% on Thursday at $81.05, and traded down about 1.9% Friday morning at $79.50. The stock’s 52-week range is $71.74 to $90.87. The 12-month consensus price target for the shares was $92.27 before this morning’s report.

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