Benchmark U.S. oil prices averaged a record of close to $98 a barrel during the quarter, up nearly 70 percent from a year earlier, but refiners struggled to push through the full price increase to customers.
HOUSTON (Reuters) - Marathon Oil Corp <MRO.N> said on Thursday first-quarter earnings edged up 2 percent, surpassing Wall Street estimates, as profits from record oil prices outweighed weak margins at its refining business.
Benchmark U.S. oil prices averaged a record of close to $98 a barrel during the quarter, up nearly 70 percent from a year earlier, but refiners struggled to push through the full price increase to customers.
Net income rose to $731 million from $717 million a year earlier. Earnings per share fell by a penny, to $1.02, because of an increase in shares outstanding.
Adjusted for special items, earnings were $1.07 per share, well above analysts' average forecast of 82 cents, according to Reuters Estimates.
!ADVERTISEMENT!Planned maintenance at two refineries hurt downstream margins, the Houston-based company said.
Income at Marathon's exploration and production unit climbed 78 percent to $684 million due to higher liquid hydrocarbon prices.
The company's refining, marketing and transportation unit reported a loss of $75 million, compared with a profit of $345 million a year earlier.
Shares of Marathon climbed 2 percent, or 92 cents, to $46.49 in morning trading on the New York Stock Exchange.
(Reporting by Anna Driver; editing by John Wallace)
