Well, 1st quarter earnings were poorer than the already low expectations. It's hard to rationalize major changes at the highest level are not required going forward.
11 replies (most recent on top)
I wanted to share a few thoughts as we approach the proxy vote. I know there’s concern about what a board seat for Elliott Management might mean for job security — it’s a natural worry. But I believe we also need to seriously consider what could happen if nothing changes. Right now, Phillips 66 is lacking clear strategic direction and accountability. We’ve all seen it: people in roles that don’t align with their strengths, decisions made without the input of experts, and a culture that seems to discourage challenge or innovation (you need to be a yes person to get ahead). In the past, leaders surrounded themselves with the best people — now, too often, it seems like capability is viewed as a threat. The reality is, if we stay on the current path, we risk far more than disruption from an activist investor. We risk the long-term viability of the company and the jobs we’re trying to protect. We can’t afford to ignore that. I’m not saying change is easy, but it might be necessary. Elliott’s involvement could be the catalyst we need to correct course and get the right people in the right positions, with stronger oversight and clearer goals......and no I don't work for Elliott.
@hd+1jspeydkw, commercial is a team sport, problem is GoGo’s ELT saw fit to put someone without leadership experience in supply, trading or refining in charge. This individual assumes their trouble shooting success elsewhere and ability to manage up translates to into being a visionary on the trade floor.
So morale is in the basement and the chosen one ignores or disrespects those who know the ins and outs of P66s refining system. Instead, listening to the smooth talkers and whatever fools gold they’re selling.
The idea of hiring superstars is a fantasy. In order to do so they would have to pay them more than the chosen one and his sychophants. P66 doesn’t allow for individual contributors to make more than management. The trading companies don’t have this problem.
Someone else on the board mentioned the parable of the American vs Japanese rowing team. This fits commercial and P66 ELT perfectly.
Unfortunately, P66 management isn’t up to meeting the challenges facing the company. No matter how many times they try, there are no shortcuts to success. The kiss of death was bringing in consultants whose track record was in direct conflict with P66s values of Honor, Safety and Commitment. Until GoGo and co are shown the door, the company will continue to flounder.
@bp+1jspeydkw can you give more insight to how bad things are in Commercial? I thought they were hiring big g-ns from external companies to fill the gaps and bring in new trading skills.
The first question taken on the earnings call was a set up. This gave Mark the opportunity to “read” his response and try to state the ELT and the Board’s case of why the arguments that Elliott has brought forward are inaccurate. I thought the entire rant of how good the board members are and the experience they hold in breaking up companies was strange. I did not hear anything during his monologue that addressed the issues of PSX stock lagging piers or any forward looking strategy that will change the trajectory of the company. Also, the earnings call did not address the continued failure to reduce costs on a sustainable basis. I am not surprised the analysts did not ask about this continued gap, because I think they have come to realize that none of the projected savings are real, and why keep beating this dead horse. Discussion of next quarter’s earnings being better was solely based on the thought that the underlying markets would be better. PSX needs to stop the internal bleeding from failed initiatives, so if markets do improve they can actually benefit from the uplift.
Spinning the story that all was fine with this quarterly result may work with the sell side analysts and those investors the ELT and their spouses take to Stony island for quail hunting and fishing, but Elliott and the smart money are picking this apart and seeing through the rambling responses and excuse making on todays call.
@ab+1jspeydkw, commercial make money? The golden goose is dead. The geniuses running it into the ground ran off the rainmakers and commercial is swimming in red ink. The tariffs have been like jumping headfirst into a wood chipper for commercial.
GO GO and ELT are neither true to their shareholders or employees . P66 delivers , earnings quarter over quarter sharing different story . As ELT prodly displays EIA ( Energy In Action ) GO GO please atleast follow quote - working for greater good and resign you and ELT are unfit to lead this company . KM not sure what he is babbling
It seemed like GoGo was just reading from prepared statements, both at the beginning and end of the call, like his heart wasn’t really in what he was doing.
Can Ke^in sound less interested on these calls?! Drink some coffee man.
Did Commercial trading make or lose money this quarter?
This news comes at the worst time to fight off Elliott. Sorry to say this but get ready for Elliott to win.
Good Luck