Marathon Petroleum Corp (MPC.N) reported a more than three-fold increase in quarterly earnings on Tuesday, benefitting from greater margins on sustained gasoline demand and tight crude supply, and increased its share repurchase program by $5 billion.
After Russia invaded Ukraine, crude supplies tightened, and refiners’ margins rose due to pandemic-related facility closures and demand recovery.
Jet fuel demand has also benefitted the corporation.
The January-March refining and marketing profit rose 70.8% to $26.15 per barrel.
Due to Gulf Coast maintenance, the leading U.S. refiner recorded 89% crude capacity utilization in the reporting quarter, down from 91% the previous year.
After solid demand recovery last year led to sky-high utilization rates, U.S. oil refiners reduced operating runs due to maintenance during the quarter.
Marathon’s first-quarter throughput of 2.8 million bpd remained unchanged from last year.
It forecasts 2.86 million bpd this quarter.
For the three months that ended March 31, the Findlay, Ohio-based refiner reported a net income of $2.7 billion, or $6.09 per share, up from $845 million, or $1.49 per share, a year earlier.
Refinitiv predicted a $5.74 profit.
Marathon returned $3.5 billion in dividends and share buybacks in the first quarter and $1.2 billion in April.
Tuesday’s authorization gives the firm $9 billion for a stock buyback.
Marathon shares increased 1.2% premarket and 5.2% this year.
