Summary
Marathon Petroleum Corporation (MPC) reported a significant net loss attributable to MPC of $886 million ($1.36 per diluted share) for the third quarter of 2020, a substantial decline from the $1.1 billion net income in the same period of 2019. This downturn was primarily driven by a substantial loss in the Refining & Marketing segment, impacted by reduced refined product sales volumes, prices, and margins due to the ongoing COVID-19 pandemic and declining commodity prices. The company also recorded significant impairment charges totaling $433 million related to long-lived assets and $348 million in restructuring expenses associated with idling two refineries and workforce reductions. For the first nine months of 2020, MPC reported an even larger net loss attributable to MPC of $10.11 billion ($15.58 per diluted share), a stark contrast to the $2.19 billion net income in the comparable 2019 period. This extended period of loss was heavily influenced by massive impairment charges, including $7.39 billion for goodwill, $1.32 billion for equity method investments, and $886 million for long-lived assets, all attributed to the challenging economic environment and commodity price declines. The sale of the Speedway business continues to be presented as discontinued operations, contributing positively to earnings in the current period, though overall results were deeply impacted by ongoing market headwinds.
Financial Highlights
49 data points| Revenue | $17.41B |
| Cost of Revenue | $16.67B |
| Gross Profit | $735.00M |
| SG&A Expenses | $673.00M |
| Operating Expenses | $18.61B |
| Operating Income | -$1.06B |
| Interest Expense | $376.00M |
| Net Income | -$886.00M |
| EPS (Basic) | $-1.36 |
| EPS (Diluted) | $-1.36 |
| Shares Outstanding (Basic) | 650.00M |
| Shares Outstanding (Diluted) | 650.00M |
Key Highlights
- 1Significant net loss attributable to MPC of $886 million in Q3 2020 ($1.36/share), down from a $1.1 billion profit in Q3 2019 ($1.66/share), largely due to the Refining & Marketing segment's performance impacted by COVID-19 and lower commodity prices.
- 2Year-to-date net loss attributable to MPC of $10.11 billion ($15.58/share) reflects substantial impairments, including $7.39 billion in goodwill and $1.32 billion in equity method investments, driven by adverse market conditions.
- 3The company recorded $433 million in long-lived asset impairment charges and $348 million in restructuring expenses in Q3 2020 related to refinery idling and workforce reductions.
- 4Sales and other operating revenues decreased by $10.14 billion in Q3 2020 compared to Q3 2019, driven by lower refined product sales volumes and prices, primarily due to the pandemic's impact on travel and business operations.
- 5The sale of the Speedway business continues to be reported as discontinued operations, contributing $371 million in net income for Q3 2020.
- 6Midstream segment income from operations increased to $960 million in Q3 2020 from $919 million in Q3 2019, benefiting from organic growth projects and reduced operating expenses, demonstrating resilience.
- 7MPC maintained a strong liquidity position with $8.44 billion available at September 30, 2020, despite temporary suspension of share repurchases and strategic debt management.