Marathon reports smaller-than-expected loss despite refinery downtime

By Arunima Kumar and Nicole Jao

May 6 (Reuters) - Marathon Petroleum MPC.N swung to a loss in the first quarter, but performed better than Wall Street expected, as the biggest U.S. refiner navigated a period of elevated maintenance and industry-wide turnaround activity.

The results reflected the second-largest planned maintenance quarter in its history, the company said on Tuesday.

"We completed significant planned turnaround activity in the quarter, particularly in our Gulf Coast region, where utilization decreased from 97% in the fourth quarter of last year to 82% in the first quarter," said Chief Financial Officer John Quaid during a conference call with analysts.

Lower Gulf Coast volumes were partially offset by higher margins in the mid-continent region and on the West Coast, Quaid added.

The Findlay, Ohio-based refiner said quarterly crude capacity utilization was about 89%, resulting in total throughput of 2.8 million barrels per day.

The scheduled downtime to perform maintenance — known as turnaround activity — reduces refinery utilization, limiting the company's production.

Marathon plans to operate its refineries at 94% of their combined capacity in the second quarter.

Net loss attributable to Marathon was $74 million, or 24 cents per share, for the three months ended March 31, compared to a profit of $937 million, or $2.58 per share, a year earlier.

Rivals Valero Energy VLO.N, Phillips 66 PSX.N and HF Sinclair DINO.N also reported quarterly losses.

Analysts on average had expected Marathon to lose 53 cents per share, according to data compiled by LSEG.

"Although first-quarter earnings results were well ahead of expectations, the consensus estimate had been lowered significantly since Marathon last reported," said Nick Hummel, analyst with Edward Jones.

The company's shares were up about 1% in midday trading.

Marathon said its refining and marketing margin was $13.38 per barrel in the first quarter, compared to $19.35 per barrel in the same period of 2024.

U.S. refining margins rebounded in the first three months of 2025 after touching multi-year lows last year, but face pressure from market volatility related to U.S. tariffs.

Marathon, the top U.S. refiner by volume, returned over $1.3 billion of capital to shareholders during the quarter. As of the end of March, the company had $6.7 billion available under its share repurchase authorizations.

"For our refining business, we are positioned to meet summer demand as seasonal trends are expected to improve margins and we remain constructive on its long-term outlook," CEO Maryann Mannen said in a statement.