Phillps 66 begins trading on US stock market as Board agrees spin off arrangements and announce Q1 results.
After announcing a split between its upstream and downstream operations last year, the Board of ConocoPhillips finally give its approval for the spin off and Phillips 66 shares began trading on the Dow Jones in April.
Distribution of the new common stock Phillips 66 shares, which trade under the symbol PSX WI, took place at the end of April, although the shares began trading earlier in the month. The distribution would not, according to the IR, be subject to tax except where capital gains were made on fractions of shares.
Following the split, and the resulting repositioning, ConocoPhillips becomes an upstream-focused organisation which, according to the company "will be the industry’s largest and most diverse global, pure-play, upstream company". Meanwhile, Phillips 66, will "offer a unique approach to downstream integration, comprising segment-leading refining and marketing, midstream and chemicals businesses".
The timing of the split comes along with mixed news for the overall businesses. ConocoPhillips reported a drop in Q1 profits of three percent. The figures include the elements of the business that will now become Phillips 66 and refining is one area which fell, down 6.2% year-on-year to $452m. Overall expenses rocketed by 37% across teh organsiation at $685m, although this is likely to be influenced by the restructuring costs.
Perhaps fortuitous for the now separate Phillips 66, however, is the recent news that the Chinese Government has agreed further compensation payments with ConocoPhillips for the upstream operator's part in the Bohai Oil spill in the South China Sea. Having already paid sigificant sums to local fishermen, the company has now agreed to pay some $297m (CNY 1.8bn) in additional compensation for the incident leaked some 700 barrels of oil into the Sea.