Marathon Oil Corp. (MRO), Tuesday reported a turn to profit in the fourth quarter bolstered by gains from the sale of assets in Gabon and on higher oil prices. Nevertheless, earnings missed estimates, while revenues came in above expectations.
Net income of the Houston, Texas-based company was $355 million or $0.50 per share, compared to a net loss of $41 million or $0.06 per share in the same quarter a year ago.
Income from continuing operations for the quarter was $199 million or $0.28 per share, compared to a loss of $49 million or $0.07 per share in the corresponding quarter last year. Income from discontinued operations was $156 million or $0.22 per share during the quarter, compared to $8 million or $0.01 per share in the year-ago quarter.
Quarterly results included a $139 million increase to the provision for income tax due to foreign currency re-measurement loss and a gain of $164 million related to the sales of operating assets of Gabon. Prior year results were reduced by $138 million related to the foreign currency re-measurement gains.
Net income adjusted for special items was $229 million or $0.32 per share, down from $1.025 billion, or $1.44 per share in the year-earlier quarter.
On average, 19 analysts' polled by Thomson Reuters expected earnings of $0.51 per share for the quarter. Analysts' estimate typically excludes one-time items.
Marathon's total revenue and other income increased to $16.07 billion from $14.70 billion in the year-earlier quarter, comfortably surpassing Street estimates of $13.69 million.
Like other sectors, economic downturn also impacted the oil sector deeply, forcing high profit companies to spew out about losses, troubled constantly by factors such as falling oil demand and lower commodity prices, while at the same time providing fresh and new risk factors in the form of price volatility, policy changes and lack of human capital.
Lower price realization has been the main issue for Marathon in the past two quarters that allowed its profit drop to $413 million from $2.06 billion in the third quarter and to record a plunge of 46.6% in the second quarter profit at $413 million. Now with economy showing signs of recovery, oil prices are also stabilizing allowing companies to offset losses accrued during meltdown.
In the fourth quarter, oil giant Chevron Corp. (CVX) reported a slide in profit to $3.07 billion or $1.53 per share from $4.90 billion or $2.44 per share reflecting losses in its downstream business due to lower sales margins for gasoline and other refined products amid weak demand and excess supply worldwide. Total revenues and other income rose to $48.68 billion from $45.20 billion in the year-ago quarter.
Another player, British oil giant BP Plc (BP, BP.L) posted a profit for the fourth quarter, fueled by oil and gas production growth, besides increasing reserves. Profit attributable to BP shareholders was $4.38 billion or 22.64 cents per share, and total revenues and other income for the quarter was $73.6 billion.
International liquid hydrocarbon sales of Marathon increased to 197 mbpd or million barrels per day from 180 mbpd in the year-earlier quarter. Worldwide sales of liquid hydrocarbon also rose to $259 mbpd from 249 mbpd in the same quarter last year.
International net natural gas sales increased 14% to 565 million cubic feet per day or mmcfpd, while worldwide dropped 7.7% to 929 mmcfpd from the year-earlier quarter.
Total World sales of oil decreased to 413 thousand barrels of oil equivalents per day from $417 mboepd in the year-earlier quarter.
Total costs and expenses were $15.07 billion, compared to $14.35 billion recorded in the year-ago quarter. As the company continued to focus on controlling costs, Exploration and Production reduced operating costs per barrel of oil equivalent , excluding production taxes and depreciation, depletion and amortization (DD&A), by 26% in the fourth quarter, compared to the same period of 2008.
Income from operations was $993 million, compared to $349 million in the comparable quarter last year. Total segment income was $499 million, compared to $701 million in the year-earlier quarter.
Exploration and production sales volumes averaged 413,000 boepd compared to 402,000 boepd for fourth quarter 2008, both periods exclude Gabon and Ireland.
Marathon also said it expects 2010 E&P production available for sale between 390,000 and 410,000 boepd, excluding the effect of any future acquisitions or dispositions.
For full-year 2009, net income of Marathon dropped to $1.463 billion or $2.06 per share from $3.528 billion or $4.95 per share in the year-earlier quarter. Adjusted net income for the quarter was $1.156 billion or $1.63 per share. Total revenues dropped to $54.14 billion from $78.13 billion a year ago. The Street expected earnings of $1.87 per share on revenues of $51.91 billion for the year.
MRO is currently trading at $30.67, up $0.01 or 0.03%, on a volume of 5.44 million shares. In the last 52-week period, the stock traded in a range of $20.18 to $35.71, with a three-month average volume of 5.61 million shares.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.