HOUSTON (AP) -- Oil refiner and chemical company Phillips 66 more than doubled its first-quarter profit on higher margins as it increased its use of cheaper U.S. crude.
Nearly two-thirds of Phillips' profit came from refining, and that business boomed, with an increase of $455 million in adjusted earnings. The company said that mostly reflected wider price spreads between crude oil and products such as gasoline.
The company said it fared better by using cheaper crude oil from Canada, the Bakken field in North Dakota and the Eagle Ford field in Texas. It ran more lower-cost oils through its mid-continent and East Coast refineries.
Phillips said Wednesday that net income was $1.41 billion, or $2.23 per share, compared with $636 million, or $1 per share, a year ago.
Adjusted earnings were $2.19 per share.
Revenue fell to $42.33 billion from $46.52 billion a year earlier, but expenses fell more rapidly, especially for purchased crude oil.
Analysts expected adjusted earnings of $1.88 per share on revenue of $41.62 billion, according to FactSet.
The shares fell 91 cents to $60.04 in morning trading.