OREANDA-NEWS. Marathon Petroleum Corporation (NYSE: MPC) reported 2014 first-quarter earnings of USD 199 million, or USD 0.67 per diluted share, compared with USD 725 million, or USD 2.17 per diluted share, for the first quarter of 2013. First-quarter 2014 earnings included pretax pension settlement expenses of USD 64 million, which have historically been excluded in arriving at earnings adjusted for special items. There were no pretax pension settlement expenses in the first quarter of 2013.

"This quarter we successfully completed major turnarounds at our two largest refineries, Galveston Bay and Garyville," said MPC President and Chief Executive Officer Gary R. Heminger. "This was our first significant turnaround at Galveston Bay, and we are pleased with the outcome. Along with other maintenance work across our operations, this was the largest quarterly combined turnaround activity in our history. While we had much larger than normal turnaround expenses in the first quarter, we are well-positioned to continue our top-tier operational performance.

"Additionally, adverse weather conditions throughout the quarter created a challenging work environment across our integrated operations," said Heminger. "I am especially pleased with the execution by our refining organization during the extensive turnaround work and the extraordinary efforts put forth by all of our employees to reliably deliver products to our consumers."

Although MPC's refining operating costs were in line with the company's expectations, refinery throughputs were 100,000 barrels per day lower than projected due to weather and turnaround activity during the quarter. Additionally, a number of factors reduced its earnings compared to the strong financial results for the first quarter of last year. Most notable were narrower crude differentials and higher turnaround costs that were partially offset by stronger crack spreads and more favorable net product price realizations.

Looking forward, Heminger said, "We are encouraged by the signs of improving market conditions and returning throughputs to full run rates which support our positive outlook for the business."

Heminger also highlighted investments made earlier this year. On April 1, MPC expanded its renewable fuels production portfolio with the purchase of a biodiesel manufacturing facility located in Cincinnati, Ohio. The plant, with waterborne access, is capable of producing approximately 60 million gallons per year of biodiesel. MPC also acquired an additional 7 percent interest in Explorer Pipeline, which increased MPC's ownership interest to 25 percent and is consistent with the goal of growing its midstream asset base. Heminger said, "We continue to evaluate new opportunities to leverage our existing operations and logistics systems."

During the quarter, MPC returned USD 812 million to shareholders, USD 123 million in the form of dividends and USD 689 million in share repurchases. Heminger noted, "These capital returns demonstrate our continued commitment to balance value-enhancing investments in the business with returns to shareholders."