Marathon Petroleum's profit beats; says to speed up asset transfer
(Reuters) -- Marathon Petroleum Corp reported a higher-than-expected quarterly profit and said it would speed up the transfer of assets to its unit, MPLX LP.
Amid pressure from hedge fund Elliott Management to boost its stock price, Marathon said in January that it would accelerate its previously announced drop down to MPLX and consider a separation of its Speedway retail business.
Elliott had disclosed a 4% stake in Marathon in November and urged the company to separate its retail, refining and pipeline businesses.
The refiner said on Wednesday a special committee, which was reviewing Speedway's divestiture, was expected to provide an update by mid-2017.
Marathon, whose operations are primarily in the US Midwest, Southeast and Gulf Coast, said its refining and marketing gross margin fell 10.2% to $11.41 per barrel in the fourth quarter.
Crude oil capacity utilization was 93% in the latest quarter, down from 100% in the third quarter, the company said.
Findlay, Ohio-based Marathon also cut its investments in a project, which will integrate its Galveston Bay and Texas City refineries, to $1.5 billion from $2 billion.
Net income attributable to the company rose to $227 million, or 43 cents per share, in the fourth quarter ended Dec. 31 from $187 million, or 35 cents per share, a year earlier.
Excluding items, the company reported earnings of 43 cents per share, while analysts' on average had expected earnings of 26 cents, according to Thomson Reuters I/B/E/S.
Total revenue and other income rose 10.2% to $17.28 billion, handily beating analysts' estimate of $14.54 billion.
Reporting by Arathy S Nair in Bengaluru; Editing by Sriraj Kalluvila and Anil D'Silva
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