Marathon Petroleum Tops Profit Estimates On Strong Fuel Demand - OilPrice.com
Marathon Petroleum Tops Profit Estimates On Strong Fuel Demand | OilPrice.com
Oil Inventories Rise As Gasoline, Diesel Inventories Fall
Real growth again from the…
As China's Belt and Road…
Strong U.S. fuel demand helped Marathon Petroleum ( NYSE: MPC) easily beat analyst estimates after reporting on Tuesday an adjusted net income of $3.2 billion for the third quarter of 2023.
Adjusted earnings per share came in at $8.14, above the analyst consensus estimate of $7.75 compiled by The Wall Street Journal.
In the refining and marketing segment, adjusted EBITDA was $16.06 per barrel for the third quarter of 2023, down from $19.87 per barrel for the third quarter of 2022, due to lower market crack spreads.
The refining and marketing (R&M) margin for Marathon Petroleum was $26.16 per barrel for the third quarter of 2023, down from $30.21 per barrel for the third quarter of 2022.
Refining operating costs per barrel fell to $5.14 for the third quarter of 2023, versus $5.63 for the third quarter of 2022, primarily driven by lower energy costs, Marathon Petroleum said.
Crude capacity utilization was around 94%, resulting in total throughput of 3.0 million barrels per day (bpd) for the third quarter of 2023, the company said.
“The business generated $5 billion of net cash provided by operating activities and we returned $3.1 billion through share repurchases and dividends during the quarter,” President and CEO Michael J. Hennigan said.
“Demonstrating our commitment to return capital, we increased our quarterly dividend by 10% and increased our share repurchase authorization by $5 billion.”
Marathon Petroleum reported earnings days after Valero Energy ( NYSE: VLO), the second largest U.S. refiner by capacity, opened the refiners’ earnings season, announcing last week higher-than-expected profits for the third quarter of 2023, amid continued strong product demand in America.
“Our refineries operated well and achieved 95 percent throughput capacity utilization, which is a testament to our team’s relentless focus on operational excellence,” said Lane Riggs, Valero’s CEO and president.
ADVERTISEMENT
Phillips 66 ( NYSE: PSX), however, missed analyst expectations despite stronger refining margins compared to the second quarter.
By Tsvetana Paraskova for Oilprice.com
More Top Reads From Oilprice.com:
Join the discussion| Back to homepage
ADVERTISEMENT
Related Knowledge Center: ENERGY BASICS: petroleum
While electric-powered vehicles may be the ride of the future, oil remains at least for now the dominant fuel for transportation around the world. And after a period of time at the end of the 20th century when oil was subject to wide fluctuations in price, new supplies in North America as a result of non-conventional recovery techniques have helped stabilize prices.