London +4420 814 42225
Moscow +7495 543 9194
Kiev +38044 599 2950
info@mrcplast.com

Our Clients

Order Informer

 
Home > News >
 

Marathon Petroleum tops estimates on refining beat, retail strength

August 19/2019

MOSCOW (MRC) -- US refiner Marathon Petroleum Corp beat estimates for quarterly profit, benefiting from better-than-expected earnings from its refining segment as well as higher sales in its gas stations business, reported Reuters.

Refiners in the United States have suffered from a lack of low-cost heavy crude in a market that has been hit by sanctions on Venezuela and Iran, and production cuts from Canadas Alberta province and OPEC members.

However, industry analysts at Simmons Energy and Credit Suisse said Marathon had managed to keep its operating costs per barrel lower than expected.

The companys earnings from its refining and marketing segment fell 11.6% to USD906 million, but beat analysts estimates of USD623.5 million, according to IBES data from Refinitiv.

Shares of the company, which posted a surprise loss in the preceding quarter owing to lower-than-expected refining margins, were up 3% in early trading on Thursday.

One-times that drove the 1Q19 miss are now firmly in the rear view mirror and MPC looks all set to capture its synergy benefits, Credit Suisse analyst Manav Gupta said.

Marathons refineries ran at an average utilization rate of 97% in the quarter, compared with 100% in the year-ago quarter.

Marathon refined 3.1 million barrels per day, 1.1 million bpd higher than a year earlier. The company said the increase was primarily due to the addition of Andeavor, which it bought in October.

The company, which said it continued to focus on optimizing its portfolio that could include asset divestitures, expects to refine 3.05 million bpd at an operating cost of $5.90 per barrel in the third quarter.

Net income attributable to the Findlay, Ohio-based company rose 4.8% to USD1.11 billion in the quarter ended June 30, as it was also benefited from a more than three-fold rise in its retail segment earnings.

Excluding items, it earned USD1.73 per share, beating analysts average estimate of USD1.32.

Total revenue and other income rose to USD33.69 billion from USD22.45 billion.

As MRC wrote previously, on April 29, 2018, Andeavor, Marathon, Mahi Inc. and Andeavor LLC entered into an Agreement and Plan of Merger providing for the acquisition of Andeavor by Marathon through a merger of Mahi Inc. with and into Andeavor, with Andeavor surviving the merger as a wholly owned subsidiary of Marathon and the subsequent merger of Andeavor with and into Andeavor LLC, with Andeavor LLC surviving the merger as a wholly owned subsidiary of Marathon.


mrcplast.com
Author:Margaret Volkova
Tags:crude and gaz condensate, Marathon, USA.
Category:General News
|
| More

Leave a comment

MRC help

 


 All News   News subscribe