Business reporter Everdeen Mason tracks Marathon Petroleum’s performance because its Speedway subsidiary is a major area employer that has significant influence on area gasoline prices. Check in regularly with this newspaper to get the latest on Marathon Petroleum and Enon-based subsidiary Speedway.
Marathon Petroleum, owner of the Speedway service station/convenience store chain that operates throughout southwest Ohio, reported a 22 percent earnings increase in first quarter 2013 from first quarter 2012.
Still, shares of Marathon Petroleum (NYSE: MPC) fell $4.07, or 4.9 percent, to $78.34 in heavy trading as oil industry analysts fretted over future earnings.
Marathon said Tuesday it earned $725 million, or $2.17 a share, this quarter ending March 31. That’s up from $596 million, or $1.70 a share, a year ago, the company said.
“Our strong financial results reflect the strategic expansion and optimization of our refining system, favorable market conditions and additional income from Speedway,” said Gary Heminger, Marathon president and CEO in a conference call Tuesday.
Speedway, based in Enon, is one of Clark County’s 10 largest employers with around 750 employees and represents around 9 percent of Marathon’s earnings. Speedway generated $67 million in operating income this first quarter, up 34 percent from last year’s $50 million.
Speedway saw higher profits from merchandise sales and gas sales. Heminger attributed this to an increase in the number of Speedway stores over last year. Speedway sold 745 million gallons of gas and earned $711 million in merchandise sales, up from 706 million gallons of gas and $695 million in sales a year ago.
“We’re always interested in more opportunities to grow that brand,” said Shane Pochard, Speedway spokesman.
Last year, Marathon invested $355 million in growing Speedway. In May 2012 alone the company acquired 97 new stores across Ohio, Kentucky and Indiana. From last May to now, Speedway grew from 1,370 stores to 1,463 stores.
This year, Marathon has allotted $255 million to invest in Speedway.
Marathon Petroleum has grown as a whole largely because of an upgraded refinery facility in Detroit that allows them to process more heavy crude oil, and the acquisition of the Galveston Bay Refinery in Texas. The new refinery, bought in February, allowed Marathon to produce more gasoline to sell.
“Results from the first two months of operation has been consistent with our expectations,” Heminger said. The facility “is well positioned to process growing supplies of North American crude oil.”
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