Revenue and Other Income during the quarter grew 7.44 percent to $23,668 million from $22,029 million in the previous year period. Gross margin for the quarter contracted 561 basis points over the previous year period to 22.35 percent. Total expenses were 99.36 percent of quarterly revenues, up from 95.89 percent for the same period last year. That has resulted in a contraction of 347 basis points in operating margin to 0.64 percent.

Operating income for the quarter was $151 million, compared with $905 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $680 million compared with $1,620 million in the prior year period. At the same time, adjusted EBITDA margin contracted 448 basis points in the quarter to 2.87 percent from 7.35 percent in the last year period.

"During 2016, we delivered strong operating performance, advanced our growth projects, managed costs, and rewarded our shareholders," said Greg Garland, chairman and chief executive officer of Phillips 66. "We achieved record safety performance and refining utilization rates, started up the Freeport LPG export facility and returned $2.3 billion to shareholders through dividends and share repurchases. However, fourth-quarter financial results were disappointing, and reflect challenging market conditions."

The company has spent $3,158 million cash to meet investing activities during the year as against cash outgo of $5,738 million in the last year. It has incurred net capital expenditure of $2,688 million on net basis during the year, down 52.79 percent or $3,006 million from year ago.

The company has spent $178 million cash to carry out financing activities during the year as against cash outgo of $2,117 million in the last year period.

Cash and cash equivalents stood at $2,711 million as on Dec. 31, 2016, down 11.81 percent or $363 million from $3,074 million on Dec. 31, 2015.