Marathon Petroleum Posts Bumper Profit on Soaring Fuel Prices
08.08.2022 By Ricardo Perez - NEWS

August 8, 2022 [Reuters] – Marathon Petroleum (MPC.N) smashed quarterly profit estimates on Tuesday, the latest U.S. refiner to benefit from a surge in fuel prices due to strong demand and tight supplies.

 

Global refining capacity has declined in the past two years because the pandemic-driven demand hit forced several less profitable operations to shut shop, while Western sanctions against Russia have tightened an already-undersupplied market.

Demand, meanwhile, is benefiting from the easing of COVID-19 curbs and a surge in travel after two years of pandemic disruption, Chief Executive Michael Hennigan said.

Marathon’s refining and marketing margins tripled to $37.54 per barrel in the quarter, mirroring similar gains at rivals such as Phillips 66 (PSX.N) and sending its shares 4.2% higher.

Faisal Hersi, an analyst at Edward Jones, said he expected refining profits to decelerate but they would likely remain above historical averages.

The industry’s bumper profits have drawn criticism from President Joe Biden, who has said refiners were putting profits ahead of consumers and urged them to expand capacity.

“The largest refining system in the United States (Marathon) did its part to manufacture fuel during the peak demand season,” said Third Bridge analyst Peter McNally.

Marathon’s refineries ran at nearly full capacity in the quarter, resulting in a total throughput of 3.1 million barrels per day (bpd), compared with utilization of 94% and a total throughput of 2.9 million bpd a year earlier.

For the third quarter, Marathon expects a throughput of 2.9 million bpd and utilization of 94%.

The company also said it would buy back another $5 billion worth of shares as it was nearing the end of the $15 billion shareholder return plan from proceeds of the Speedway sale.

Adjusted income was $10.61 per share in the April-June quarter, compared with the $8.04 expected by analysts, according to Refinitiv data.

Pro Trial: Access 10,390 Tank Terminal and Production Facilities

10,390 tank storage and production facilities as per the date of this article. Click on the button and register to get instant access to actionable tank storage industry data

Canada Commits to Backing C$3 Billion in New Trans Mountain Oil Pipeline Loans
06.02.2023 - NEWS
June 2, 2023 [Reuters]- The Canadian government is backing up to C$3 billion ($2.24 billion) in l... Read More
Port Harcourt Refinery to Start Before End of 2023, says NNPC GMD
06.02.2023 - NEWS
June 2, 2023 [Business Day]- Mele Kyari, the Group Managing Director of the Nigerian National Pet... Read More
Par Pacific Completes Acquisition of ExxonMobil Billings Refinery and Related Upper Rockies Logistics System
06.02.2023 - NEWS
June 2, 2023[Par Pacific]- Par Pacific Holdings, Inc. (NYSE: PARR) (“Par Pacific”) announced ... Read More
Kinder Morgan to Increase Storage Capacity on its Texas Intrastate System
06.01.2023 - NEWS
June 1, 2023 [Kinder Morgan]- Kinder Morgan, Inc. (NYSE: KMI) today announced its plan to expand ... Read More