Marathon Petroleum Corp (MPC)

[eFinanceMarkets]

Marathon Petroleum +2% on surprise Q1 profit as refining margins rise

Marathon Petroleum (MPC +2%) moves higher after reporting a surprise Q1 profit, as refining margins jump 18% despite challenging market conditions.

While refining operating losses narrowed to $70M in the quarter from $86M a year ago, refining and marketing margins rose 18% to $11.65/bbl, well above a Barclays estimate of $10.30/bbl.

MPC says Q1 refinery direct operating costs rose 16.5% to $9.45/bbl but still came in well below a Jefferies estimate of $10.18/bbl.

Q1 total throughput fell 3.7% to 1.71M bbl/day, but the result edged Barclays' forecast for 1.68M bbl/day, and the company expects to process 1.975M bbl/day in the current quarter, 4.6% higher than a year ago.

MPC also says a special committee expects to complete the ongoing review of Speedway's divestiture by mid-2017.