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Marathon Petroleum's revenue beats on greater refinery throughput, usage rate

Leading U.S. refiner Marathon Petroleum reported a thirdquarter earnings on Tuesday that beat Wall Street price quotes on betterthanexpected refining throughput and utilization rates.

The company's shares rose 2.1% to $147.93.

Marathon likewise authorized an extra $5 billion share bought program, and now has $8.5 billion offered under its share buyback authorization.

The refiner's unrefined capability utilization in the third quarter had to do with 94%, higher than the 90% it forecast in August. Overall throughput, or the quantity of crude processed through refineries, of 3 million barrels each day (bpd) was also above the company's previous expectation of 2.84 million bpd.

For the 4th quarter, Marathon anticipated overall refinery throughput of 2.88 million bpd.

EPS beat by a broad margin on higher-than-guided throughput. Q3 repurchases was available in above agreement expectations, TD Cowen analyst Jason Gabelman stated.

Marathon earned $1.87 per share in the 3rd quarter, compared to the average analyst price quote of 98 cents, according to information assembled by LSEG.

The business carried out much better than projection on circulation costs, refinery turn-arounds, and throughputs, which totaled about a $202 million tailwind versus the brokerage's modeling, Tudor, Pickering, Holt & & Co expert Matthew Blair stated.

Changed core earnings at Marathon's midstream unit increased 5.8% to $1.6 billion in the 3rd quarter, primarily driven by greater rates and volumes transferred.

Marathon signed up with competitors such as Valero Energy and Phillips 66 in beating experts' price quotes, but posting a drop in income.

Global oil refiners are experiencing a decline in success, marking a recession for an industry that had formerly flourished in the post-pandemic period, highlighting the slowdown in international need, specifically in China.

Marathon said its third-quarter refining and marketing margin was $14.35 per barrel, compared to $26.16 per barrel a. year earlier.

Earnings attributable to the company in the third quarter. dropped 82% to $622 million, from in 2015.

(source: Reuters)