Phillips 66 to book $100 million charge as it winds down Los Angeles refinery
1. Phillips 66 plans $100 million charges for closing its LA refinery. 2. The 139,000 bpd refinery will cease operations by year-end.
FAQ
Why Bearish?
The impending closure of a key refinery could lead to reduced production capacity and increased operational costs, mirroring similar past refinery closures that negatively affected stock performance.
How important is it?
While the closure will incur costs, it's also part of a strategic response to market conditions; however, it raises immediate concerns about profitability.
Why Short Term?
The immediate financial impact from closure charges will affect quarterly earnings, indicating short-term stock price volatility.