Marathon Petroleum 2Q Profits Collapse, Set to Sell Gas Stations in $21 Billion Deal
August 03 2020 - 7:41AM
Dow Jones News
By Adriano Marchese
Marathon Petroleum Corp. on Monday reported a significant fall
in second-quarter profit as it faced pandemic-related challenges in
the period and said it would sell its gas stations to the owners of
convenience-store chain 7-Eleven for $21 billion.
The Findlay, Ohio fuel-maker earned a quarterly profit of $9
million, or 1 cent a share, compared with $1.11 billion, or $1.67,
for the same period last year.
Excluding exceptional costs, Marathon Petroleum reported an
adjusted loss of $1.33 a share for the quarter, compared with
analysts' forecasts of a loss of $1.77.
Sales were more than halved in the period to $15.02 billion from
$33.69 billion.
"We began April with demand at historic lows. Despite seeing
some recovery during the quarter, demand for our products and
services continues to be significantly depressed, particularly
across the West Coast and Midwest," President and Chief Executive
Michael J. Hennigan said.
The company said it is on track to deliver $1.4 billion of
capital spending and at least $950 million of operating expense
reductions.
Marathon agreed to sell its Speedway gas stations to the owners
of the 7-Eleven for $21 billion in the largest U.S. energy-related
deal of the year. The deal was announced Sunday.
The company said the after-tax proceeds of $16.5 billion are
expected to be used to strengthen the balance sheet and return
capital to shareholders.
Write to Adriano Marchese at adriano.marchese@wsj.com
(END) Dow Jones Newswires
August 03, 2020 07:26 ET (11:26 GMT)
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