Marathon Petroleum profit misses as refining margin falls
(Reuters) — Refiner Marathon Petroleum Corp's quarterly profit missed Street view as higher crude acquisition costs weighed on its refining and marketing margins.
Despite stronger crack spreads—the difference between the prices of crude oil and refined products—in the Q2, higher crude oil and feedstock acquisition costs led to a 11.1% fall in marketing and refining margins in the second quarter ended June 30.
Marathon, the first major US refiner to report quarterly results, said refining and marketing gross margin fell to $11.32 per barrel in the reported quarter from $12.73 last year.
Total costs and expenses rose about 12% to $17.33 B in the quarter.
Income from the company's refining and marketing segment, which accounted for more than half the total income, fell 45.2% to $562 MM in the quarter.
Net income attributable to Marathon fell 35.7% to $515 MM, or $1 per share, in the second quarter, from $801 million, or $1.51 per share, a year earlier.
Excluding items, Marathon earned $1.03 per share, missing analysts' average estimate of $1.07 per share, according to Thomson Reuters I/B/E/S.
Revenues and other income rose 9.3% to $18.35 B.
Reporting by Muvija M in Bengaluru; Editing by Amrutha Gayathri
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