Marathon Petroleum Beats Quarterly Profit Estimates on Refining Margin Boom

(Reuters) – Marathon Petroleum’s  ​quarterly profit beat Wall Street’s ‌estimate on Tuesday, as fuel supply disruption from the U.S.-Israeli war ​on Iran pushed refining margins ​to multi-year highs.

Shares of the ⁠refiner rose around 2% in premarket trade.

Refining ​margins for gasoline, diesel and ​jet fuel soared after the effective closure of the Strait of Hormuz for ​months disrupted crude flows ​to refiners, while repeated Iranian attacks on ‌refineries ⁠across the Middle East further squeezed fuel supplies.

Marathon’s quarterly refining and marketing margin rose to $36.33 ​per barrel ​from ⁠last year’s $17.58 per barrel.

The top U.S. refiner posted ​adjusted profit of $17.73 per share ​for ⁠the three months ended June 30, versus average analysts’ estimate ⁠of $13.73 per ​share, according to ​data compiled by LSEG.

Reporting by Arunima Kumar ​in Bengaluru; Editing by Sahal Muhammed

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