Key facts
- Marathon Petroleum reported its highest quarterly profit in four years.
- The company's adjusted profit was $17.73 per share, exceeding the $13.73 estimate.
- Refining margins doubled to $36.33 per barrel due to supply disruptions.
- Crude supply disruptions through the Strait of Hormuz and Iranian attacks boosted margins.
- The renewable diesel unit reported a profit of $258 million, a significant improvement from a year-ago loss.
Marathon Petroleum reported its highest quarterly profit in four years, exceeding analyst expectations, driven by elevated refining margins. Prolonged disruptions to crude oil supplies, particularly through the Strait of Hormuz, and ongoing Iranian attacks on Middle Eastern refineries have significantly squeezed fuel supplies and boosted margins for gasoline, diesel, and jet fuel.
The company's refining and marketing margin doubled to $36.33 per barrel compared to the previous year. Marathon's crude capacity utilization stood at 94%, with a total throughput of 2.9 million barrels per day (bpd) for the second quarter. The company anticipates a throughput of 3 million bpd for the third quarter.
Marathon's renewable diesel unit also saw a substantial turnaround, posting an adjusted core profit of $258 million, a significant improvement from a $19 million loss a year prior. This gain was attributed to stronger margins, higher throughputs, and improved regulatory credit values, benefiting from government biofuel mandates and higher diesel prices linked to Middle East conflict.
Marathon's adjusted profit of $17.73 per share for the quarter ending June 30 surpassed the average analyst estimate of $13.73 per share. This performance follows similar strong results from rivals Valero Energy and HF Sinclair.