HOUSTON -- Marathon Oil Corp., Ashland Petroleum and Valero Energy Corp. each reported dismal fourth-quarter figures this week.
Marathon reported its fourth-quarter losses almost tripled in the face of reduced demand for oil and natural gas. Losses widened to $898 million, or $2.90 a share, from $310 million, or $1 a share, a year earlier. Revenue fell 15 percent to $6.85 billion from $8.05 billion, the company said in a statement.
Marathon was split into a separate company on Dec. 31 after parent USX Corp. decided to spin off its steel business, now called United States Steel Corp. USX adopted the Marathon name and will remain focused on oil and gas production and refining.
The company had costs of $996 million during the quarter, mostly related to its split from USX's steel business, it reported. Without the costs, profit would have been $98 million, or 32 cents a share. It was expected to earn 41 cents, in line with analysts estimates, according to Bloomberg News reports.
Marathon reported a 28 percent decline in refining and marketing profits, to $221 million. The company's refining assets are part of a joint venture with Ashland Inc. of Covington, Ky. Marathon owns 62 percent of the venture.
Meanwhile, Ashland on Friday reported that net income fell 36 percent to $38 million, or 54 cents a share, on lower refining margins. Valero, whose $3.5 billion merger with fellow refiner Ultramar Diamond Shamrock closed this month, also said January's profit margins were even weaker than those posted in the fourth quarter, when margins declined 40 percent from last year. Valero reported net income fell about 45 percent to $51.6 million, or 82 cents per share, compared with $93.3 million, or $1.47 per share. in the prior year's fourth quarter.
