Marathon Petroleum Reiterates Martinez Renewables Guidance, Posts Net Income of $4.5 Billion
11.07.2022 By TankTerminals.com - NEWS

November 7, 2022 [Oil&GasJournal] – The Martinez Renewables Fuels project, a joint venture of Marathon Petroleum Corp. and Neste to transform the now-idled Martinez, Calif., refinery into a renewable fuels production site, remains on track to reach mechanical completion by yearend.

 

The Martinez Renewables Fuels project (MRF), a joint venture of Marathon Petroleum Corp. and Neste to transform the now-idled Martinez, Calif., refinery into a renewable fuels production site, remains on track to reach mechanical completion by yearend.

MRF’s first phase is scheduled to begin production of 260 million gal/year of renewable diesel in early 2023, with pretreatment capabilities to come online in second-half 2023. By yearend, 2023, MPC and Neste said they expect the converted Martinez refinery to reach its full nameplate production capacity of 730 million gal/year.

Marathon noted the unchanged project guidance as part of its third-quarter 2022 report.

Third-quarter 2022

Marathon Petroleum reported net income of $4.5 billion for third-quarter 2022, compared with net income of $694 million for the same period in 2021.

Adjusted net income was $3.9 billion for the quarter. This compares to adjusted net income of $464 million for third-quarter 2021. Adjusted results for third-quarter 2022 exclude net pre-tax benefits of about $1 billion and for third-quarter 2021 exclude pre-tax charges of $48 million.

The refining and marketing had adjusted EBITDA of $5.5 billion in the quarter, versus $1.2 billion for third-quarter 2021. Segment adjusted EBITDA excludes refining planned turnaround costs, which totaled $384 million in third-quarter 2022 and $205 million in third-quarter 2021. The increase in segment adjusted EBITDA was driven by higher margins and volumes.

Crude capacity utilization was about 98%, resulting in total throughput of 3 million b/d for third-quarter 2022. This compares to crude capacity utilization of about 93% for the same period in 2021, which resulted in total throughput of 2.8 million b/d.

The midstream segment adjusted EBITDA was $1.5 billion in the quarter, versus $1.4 billion for third-quarter 2021, up roughly 9% year over year.

Corporate expenses totaled $173 million in third-quarter 2022, compared with $186 million in third-quarter 2021.

In the quarter, items not allocated to segments include a $549 million non-cash gain for the contribution of the Martinez assets to the Martinez Renewables joint venture and a $509 million non-cash gain related to an MPLX LP third-party contract reclassification. These have been excluded from the company’s adjusted results.

The companycompleted $15 billion return of capital commitment using proceeds from the Speedway divestiture and repurchased about 30% of outstanding shares.

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