Marathon Petroleum’s quarterly profit surges on fuel demand

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(Reuters) -U.S. refiner Marathon Petroleum reported a jump in quarterly profit on Tuesday, on the back of a surge in demand for fuel and refined products amid tight supplies.

U.S. refiners are posting bumper profits with refineries running at record levels this year, strong export demand amid a squeezed supply due to Russia’s invasion of Ukraine and plant closings.

Refining and marketing margin doubled to $30.21 per barrel for the reported quarter compared with last year.

Crude capacity utilization in the third quarter was about 98%, resulting in total throughput of 3 million barrels per day (bpd) compared with 2.8 million bpd last year.

“Market demand for our products remains strong, and our third-quarter results reflect our improving operational and commercial execution,” Chief Executive Michael Hennigan said in a statement.

Against the backdrop of bumper results, the refiner also increased its dividend by 30% to 75 cents per share on Tuesday.

Net income attributable to the company stood at $4.5 billion, or $9.06 per share, for the third quarter ended Sept. 30, up from $694 million, or $1.10 per share, a year earlier.

(Reporting by Arunima Kumar in Bengaluru; Editing by Krishna Chandra Eluri)