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Marathon Petroleum posts

increased earnings

US MARATHON Petroleum has announced that allocated to low-carbon projects. This is so Mar-
for the whole of 2022, its net profit came in at athon can focus on expanding into new com-
$14.5bn, or $28.12 per diluted share, A year ear- mercial opportunities, improve the efficiency of
lier it reported net income of $9.7bn or $15.24 its assets, and lower its emissions profile while
per diluted share. enhancing its long-term sustainability, the com- For 2023,
The US refiner also reported net income of pany said.
$3.3bn, or $7.09 per diluted share, for the fourth Marathon’s crude capacity utilisation was Marathon’s
quarter of 2022. This was compared with net around 94%, resulting in a total throughput of
income of $774mn, or $1.27 per diluted share, 2.9mn barrels per day (bpd) for the fourth quar- standalone
for same period in 2021. In the fourth quarter of ter of 2022, which is roughly flat year on year.
2022, its adjusted earnings before interest, taxes, The company expects a lower crude through- capital spending
depreciation and amortisation (EBITDA), a put in the first quarter of 2023, with volumes of outlook amounts
measure of profit, totalled $5.8bn, beating Wall about 2.5mn bpd, or a utilisation rate of 88%.
Street forecasts. Marathon said it would have higher turnaround to $1.3bn.
Ohio-based Marathon also announced an activity in the first half of 2023, with costs of
incremental $5bn share repurchase authori- $350mn just in the first quarter.
sation. It returned $13.2bn of capital to share- The company also said that Phase I of the
holders in 2022, of which $11.9bn was through Martinez Renewable Fuels facility in Northern
share repurchases and $1.3bn was in the form of California was progressing. The facility is on
dividends. track to reach full Phase I production capacity of
Margins were high because there has been 260mn gallons (984mn litres) per year of renew-
rising demand for refined petroleum products able fuels by the end of the first quarter of 2023.
and a supply squeeze because of Russia’s invasion Pre-treatment capabilities at the Martinez
of Ukraine and facilities closures. plant are expected to come online in the second
For 2023, Marathon’s standalone capital half of 2023 and the facility is anticipated to be
spending outlook amounts to $1.3bn. Of the capable of producing 730mn gallons (276mn
$900mn of growth capital, about 40% has been litres) per year by the end of 2023.™

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