February 04, 2026 [Reuters]- Refiner Phillips 66 beat Wall Street estimates for fourth-quarter profit on Wednesday, as a rebound in U.S. refining margins lifted earnings after a prolonged slump in 2024.

U.S. fuel maker margins have begun to rebound from multi-year lows, a pullback that followed the earlier spike triggered by sanctions on Russia in the wake of its invasion of Ukraine, which had constricted global supply.

Quarterly U.S. refinery margins, measured by the 3-2-1 crack spread , were up about 45% on average in the fourth quarter from a year earlier.

Phillips 66’s realized margin more than doubled to $12.48 per barrel in the quarter, swinging its refining segment to adjusted earnings of $542 million, compared with a loss of $759 million from a year earlier.

The refiner’s crude capacity utilization in the quarter was at 99%, compared with 94% from a year earlier, while turnaround expenses rose nearly 10% to $135 million.

The refiner also said it reduced debt by $2.0 billion during the quarter, ending the year at $19.7 billion.

Refiners in the U.S. are also said to benefit from full-scale resumption of Venezuelan oil exports and lower fuel production costs.

Last month, Reuters reported that Phillips 66 and Valero Energy bought a cargo each of Venezuelan crude oil, one of the first deals by U.S. Gulf Coast refiners that are part of Washington’s agreement with Caracas to export up to 50 million barrels.

Phillips 66 reported an adjusted profit of $2.47 per share for the three months ended December 31, compared with analysts’ average estimate of $2.16 per share, according to data compiled by LSEG.