Phillips 66 (NYSE: PSX) reported lower-than-forecast profits for the first quarter of the year, as refining margins halved from the year-ago period and refinery maintenance affected product sales.The U.S. refinerreportedon Friday first-quarter earnings of $748 million, down from $1.3 billion for the fourth quarter and $1.96 billion for the first quarter of 2023.Adjusted earnings per share for Q1 2024 came in at $1.90, below the analyst consensusestimate of $2.20in The Wall Street Journal.Lower refining margins – driven by less favorable commercial results, inventory hedging impacts, and lower Gulf Coast clean product realizations – impacted Phillips 66’s refining business segment.The refiner’s realized refining margin dropped to $10.91 per barrel in the first quarter from $20.72 per barrel in the same period of 2023 and from $14.41 per barrel refining margin for the fourth quarter of 2023.Following the results release, Phillips 66’s stock fell by 3% in pre-market trade on Friday.“While our crude utilization rates were strong, our results were affected by maintenance that limited our ability to make higher-value products. We were also impacted by the renewable fuels conversion at Rodeo, as well as the effect of rising commodity prices on our inventory hedge positions,” Mark Lashier, president and CEO of Phillips 66, said in a statement. “The maintenance is behind us, our assets are currently running near historical highs and we are ready to meet peak summer demand.”Another major U.S. refiner, Valero Energy (NYSE: VLO), reported on Thursday an adjusted net income more than halved in the first quarter compared to a year earlier, but earnings neverthelessbeat the analyst consensusestimate amid tight crude supplies at the start of this year.ADVERTISEMENTTighter crude supplies and flexible operations during the refinery maintenance season in the first quarter helped Valero top earnings forecasts despite the slump in the refining margin to $3.534 billion, compared to $5.9 billion for the same period last year.By Tsvetana Paraskova for Oilprice.comMore Top Reads From Oilprice.com:Join the discussion Back to homepage