Top U.S. refiner Marathon Petroleum beats quarterly profit on higher refining margins
Marathon Petroleum Corp. beat Wall Street estimates for 2Q profit on Tuesday, benefiting from a rebound in refining margins as fuel demand remained firm.
U.S. refiners are posting upbeat quarterly profits, recovering from the losses in the previous quarter on stronger diesel margins.
Marathon's rivals Valero Energy, Phillips 66 and HF Sinclair (read more) all exceeded Wall Street estimates.
Diesel cracks - a measure of margins - averaged $17/barrel (bbl) during the quarter, in line with the first quarter. However, they ended the three-month period higher at $21/bbl, TPH & Co analyst Matthew Blair said in a note earlier.
Fuel makers also saw an unexpected boost in profits from higher demand for key products in recent months, easing the slump since 2022 highs, driven by a post-pandemic recovery and war-related supply disruptions.
The margins also benefited from improved capture rates, which reflect a refining company's ability to capitalize on favorable market conditions.
"Our second-quarter results reflect actions we have taken to deliver on our strategic commitments...in refining, our team delivered 97% utilization and 105% margin capture; and we remain constructive on the long-term outlook," said CEO Maryann Mannen.
Marathon's throughput volumes for the quarter were 3.1 MMbpd, unchanged from last year, but now expects 2.9 MMbpd in 3Q. Its refining and marketing margin per barrel rose to $17.58 in the quarter from $17.53 a year earlier.
The company reported an adjusted profit of $3.96 per share for the three months ended June 30, compared with analysts' average estimate of $3.29 per share, according to data compiled by LSEG.
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