© Reuters. FILE PHOTO: Flags fly in front of the Phillips 66 refinery near Lake Charles, Louisiana, U.S., October 11, 2020. REUTERS/Stephanie Kelly/File Photo
By Mrinalika Roy and Laura Sanicola
(Reuters) – U.S. refinery and petrochemical maker Phillips 66 (NYSE ) is in active talks to sell its non-core assets, Chief Executive Mark Lashier said during an energy conference on Thursday.
Last year, the company said it would monetize $3 billion in non-core assets in 2024 as part of a plan to boost profitability by reducing costs and assets.
Lashier, however, said there was no fixed timeline for when such potential sales could occur.
“We don't have a sense of urgency… It will really depend on whether someone places a higher value on these assets than we do.”
The refiner has fallen behind rivals at a time when the industry has benefited from higher fuel demand and seen rising margins. The company has also been criticized by activist investment firm Elliott Investment Management for its refining operations.
Regarding the refining business, Lashier said inventories remain low, but he sees strength for next year.
The CEO was also optimistic about the long-term prospects of CP Chemical, a 50/50 joint venture with Chevron (NYSE:), which some Wall Street analysts have called a possible divestiture.
“We still have good, solid conviction on the long-term benefits of the chemicals business, but we bottom out in 2023… we see the fundamentals continuing to improve.”
