Marathon Petroleum Beats Street as Pipeline Unit Delivers
Marathon Petroleum Corp reported a surprise quarterly profit on Thursday as the refiner earned more from its pipelines and storages business.
Income from the company's midstream business rose 63.5 percent to $309 million in the first quarter ended March 31.
The company also said it earned more from its stakes in new and existing pipeline and marine operations.
Operating loss in its refining and marketing segment narrowed as margins rose 18 percent to $11.65 per barrel.
Brokerage Barclays (BCS) had estimated refining margins of $10.30 per barrel.
Marathon, whose operations are primarily in the U.S. Midwest, Southeast and Gulf Coast, processed less crude oil due to higher turnaround activity, or scheduled events where an entire unit is taken offstream for an extended period for a revamp or renewal.
Total throughput fell 3.7 percent to 1.71 million barrels per day in the first quarter.
The turnaround also pushed up refinery direct operating costs by 16.5 percent to $9.45 per barrel.
Crude oil capacity utilization was 83 percent in the latest quarter, down from 93 percent in the fourth quarter.
The net profit attributable to the company rose to $30 million, or 6 cents per share, in the first quarter, from $1 million, or less than 1 cent per share, a year earlier.
The year-ago quarter included 6 cents per share in charges, mainly related to a goodwill impairment recorded by MPLX LP, MPC's consolidated subsidiary.
Excluding items, the company earned 6 cents per share.
Analysts' on average had expected a loss of 5 cents per share, according to Thomson Reuters I/B/E/S.
Revenue and other income rose 27.8 percent to $16.39 billion, beating analysts' estimate of $15.43 billion.
The company said in February that it would speed up the transfer of some assets to MPLX LP and that a special committee was reviewing retail business Speedway's divestiture, after pressure from hedge fund Elliott Management to boost its stock price.
Reporting by Arathy S Nair
