Marathon Petroleum profit misses on lower margins | Reuters

Marathon Petroleum Corp (MPC.N) reported a smaller-than-expected quarterly profit as lower margins and realized prices continued to hurt its earnings.The company, whose operations are concentrated primarily in the Midwest, Southeast, and Gulf Coast regions of the U.S., said its refining and marketing gross margin fell nearly 38 percent to $10.75 per barrel.Refiners have seen their margins shrink due to the narrowing price difference between U.S. Crude CLc1 and globally traded Brent futures LCOc1, to which the price of refined products are tied.”Despite a challenging quarter, we remain optimistic as we move forward into 2017, given the signs of market rebalancing and sustained strong demand,” Chief Executive Gary Heminger said.On an adjusted basis, quarterly profit was 58 cents per share, much below the analysts’ average estimate of 81 cents per share, according to Thomson Reuters I/B/E/S.The company also said it plans to dropdown certain assets to its midstream master limited partnership MPLX.

Source: Marathon Petroleum profit misses on lower margins | Reuters

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s