Major US-Iran war impact: $900 mn loss hits this energy firm's quarterly results – Here is how
The impact of the losses is expected to be spread across multiple business segments. The refining division may take a hit of $350 million to $450 million, while the marketing and specialties segment could see losses in the range of $300 million to $400 million.
- Apr 7, 2026,
- Updated Apr 7, 2026 6:36 PM IST
US refiner Phillips 66 said its financial performance for the first quarter (January–March) was significantly affected by volatility in global energy markets driven by geopolitical tensions in West Asia. In a filing with the US Securities and Exchange Commission (SEC) on Monday, the company reported nearly $900 million in pre-tax mark-to-market losses, mainly due to a sharp rise in commodity prices.
Energy markets witnessed extreme price swings after the US-Israeli war on Iran began in late February. Iran's effective closure of the Strait of Hormuz -- a key transit route for roughly one-fifth of global oil and gas supplies -- disrupted supply expectations and drove crude prices sharply higher.
The ongoing conflict triggered one of the strongest monthly rallies in oil prices in recent years. News agency Reuters, citing LSEG data, reported that Brent futures surged 64 per cent in March, while the US benchmark West Texas Intermediate (WTI) rose about 52 per cent, marking its sharpest monthly gain since May 2020.
Phillips 66 said the losses were primarily linked to its net short position in derivatives contracts tied to crude oil, refined petroleum products, natural gas liquids and renewable feedstocks. A short position generally results in losses when prices rise unexpectedly.
"As a result of the sharp increase in commodity prices, the company's first quarter financial results were impacted by approximately $900 million in pre-tax mark-to-market losses. However, the associated increase in current market value of the underlying physical inventory is not reflected in book value. The net short position in crude and products related derivative contracts was approximately 50 million barrels as of March 31, 2026," the US firm stated.
The impact of the losses is expected to be spread across multiple business segments. The refining division may take a hit of $350 million to $450 million, while the marketing and specialties segment could see losses in the range of $300 million to $400 million. The renewable fuels business is projected to record losses between $100 million and $200 million.
Phillips 66 noted that it has not yet completed its financial closing procedures for the first quarter, and actual results may differ from preliminary estimates. The Houston, Texas-based refiner is set to report its first-quarter earnings later this month.
Most US companies follow a January–December financial year, unlike India's April–March fiscal cycle, making January–March the first quarter (Q1) for firms such as Phillips 66.
(With inputs from Reuters)
US refiner Phillips 66 said its financial performance for the first quarter (January–March) was significantly affected by volatility in global energy markets driven by geopolitical tensions in West Asia. In a filing with the US Securities and Exchange Commission (SEC) on Monday, the company reported nearly $900 million in pre-tax mark-to-market losses, mainly due to a sharp rise in commodity prices.
Energy markets witnessed extreme price swings after the US-Israeli war on Iran began in late February. Iran's effective closure of the Strait of Hormuz -- a key transit route for roughly one-fifth of global oil and gas supplies -- disrupted supply expectations and drove crude prices sharply higher.
The ongoing conflict triggered one of the strongest monthly rallies in oil prices in recent years. News agency Reuters, citing LSEG data, reported that Brent futures surged 64 per cent in March, while the US benchmark West Texas Intermediate (WTI) rose about 52 per cent, marking its sharpest monthly gain since May 2020.
Phillips 66 said the losses were primarily linked to its net short position in derivatives contracts tied to crude oil, refined petroleum products, natural gas liquids and renewable feedstocks. A short position generally results in losses when prices rise unexpectedly.
"As a result of the sharp increase in commodity prices, the company's first quarter financial results were impacted by approximately $900 million in pre-tax mark-to-market losses. However, the associated increase in current market value of the underlying physical inventory is not reflected in book value. The net short position in crude and products related derivative contracts was approximately 50 million barrels as of March 31, 2026," the US firm stated.
The impact of the losses is expected to be spread across multiple business segments. The refining division may take a hit of $350 million to $450 million, while the marketing and specialties segment could see losses in the range of $300 million to $400 million. The renewable fuels business is projected to record losses between $100 million and $200 million.
Phillips 66 noted that it has not yet completed its financial closing procedures for the first quarter, and actual results may differ from preliminary estimates. The Houston, Texas-based refiner is set to report its first-quarter earnings later this month.
Most US companies follow a January–December financial year, unlike India's April–March fiscal cycle, making January–March the first quarter (Q1) for firms such as Phillips 66.
(With inputs from Reuters)