Marathon Reports Second Quarter Results

Marathon Petroleum had a dismal second quarter thanks to the COVID-19 pandemic.

The company on Monday reported a net income of $9 million in the second quarter of 2020.

That $9 million compares to $1.1 billion in net income for the second quarter of last year.

“Our second quarter results reflect a full three months of the challenges COVID has created for our business,” said President and Chief Executive Officer Michael J. Hennigan.

“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.”

“In response, we are executing on the actions we announced in May and are advancing the three strategic priorities which lay the foundation for our long-term success. First, we strengthened the competitive position of our assets with the decision to indefinitely idle our Gallup and Martinez refineries, and are evaluating strategic repositioning possibilities for Martinez. Second, we began implementing commercial strategy changes and I’ve been encouraged by the team’s quick progress. And third, we lowered our capital spending and tightly managed our operating expenses. I’m confident we will meet the $950 million expense reduction target we previously announced for 2020. We are also implementing plans to structurally lower costs in 2021 and beyond.”

Marathon announced on Sunday that it was selling its Speedway gas stations to 7-Eleven.