Refiner Marathon Beats Profit Expectations on Robust Fuel Demand

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A Marathon Petroleum banner extracurricular  the El Paso refinery successful  El Paso, Texas connected  Oct. 1, 2018. (Julio-Cesar Chavez/Reuters)

A Marathon Petroleum banner extracurricular the El Paso refinery successful El Paso, Texas connected Oct. 1, 2018. (Julio-Cesar Chavez/Reuters)

Marathon Petroleum Corp. bushed quarterly profit estimates connected Tuesday arsenic a rebound successful fuel depletion helped the largest U.S. refiner tide implicit the surging outgo of crude oil.

Marathon’s results followed beardown net from different vigor companies.

Valero, which was the archetypal large U.S. refiner to study quarterly earnings, and PBF bushed analysts’ estimates arsenic gasoline and distillate depletion successful the apical user shakes disconnected pandemic-led weakness to travel backmost successful enactment with five-year averages.

Marathon’s refining and selling borderline was $14.51 per tube for the 4th ended Sept. 30, compared with $8.28 per tube for the corresponding play past year.

Matthew Blair, an expert astatine Tudor, Pickering, Holt & Co. (TPH) said bully margins, arsenic good arsenic outgo control, led to a tiny quarterly bushed for Marathon, adding “each conception performed amended than expected.”

Marathon’s full throughput, oregon the magnitude of crude processed, roseate to 2.8 cardinal barrels per time (bpd) from 2.5 bpd past year.

The Findlay, Ohio-based refiner expects 4th fourth full refinery throughput to beryllium 2.79 bpd.

The institution besides said it is pursuing strategical alternatives, which could see a merchantability of its 68,000 bpd Kenai refinery adjacent Anchorage, Alaska.

Adjusted nett net for the stood astatine $464 million, oregon 73 cents per share, for the 3 months ended Sept. 30, compared with a nonaccomplishment of $649 million, oregon $1 per share, successful the anterior year.

Analysts connected mean had estimated a nett of 71 cents per share, according to Refinitiv IBES data.

Reuters

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