Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Marathon Petroleum posts bumper profit on soaring fuel prices

Stock Markets Aug 02, 2022 01:06PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: Cargo shipping containers, surrounded by storage tanks for refined petroleum products, are seen at Marathon Petroleum's Los Angeles Refinery, in Carson, California, U.S., March 11, 2022. Picture taken with a drone. REUTERS/Bing Guan

By Arunima Kumar

(Reuters) - Marathon Petroleum (NYSE:MPC) 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 (NYSE:PSX) 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.

Marathon Petroleum posts bumper profit on soaring fuel prices
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Ernie Keebler
Ernie Keebler Aug 02, 2022 7:15AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Margins tripled while they squeezed the lifeblood out of the consumer.  Even after giving all the execs record bonuses they still have record profits.  Watch in a few,quarters they'll complain that margins,have been cut in half and they need to boost prices and get more government incentives so they can keep their dying businesses going.  Bring on the electrics and ******big oil before it bleeds all of consumers dry.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email