HOUSTON (Reuters) – Marathon Petroleum Corp MPC.N, America’s largest oil refiner, is cutting its workforce by 12% amid continued decline in fuel consumption due to the COVID-19 pandemic, he said Wednesday.
Oil refiners and producers have laid off staff, cut expenses and cut production to cope with low prices and a global fuel glut. Gasoline futures in the United States are down 26% from a year ago and oil is trading a third from the start of the year.
Marathon will incur a charge of up to $ 175 million on third-quarter earnings for the 2,050 job cuts, he reported to the US Securities and Exchange Commission. About 20% of the costs will be recovered from its publicly traded pipeline unit, the company said.
The Findlay, Ohio-based company revealed the downsizing after Reuters reported Tuesday that company employees had been told of impending layoffs.
The cuts include staff at its refineries in Martinez, Calif., And Gallup, New Mexico, which were slated to close in July. The closures and layoffs will reduce overall costs from next year, Marathon said in a statement.
Employees at his retail gasoline business are not included in the 12% discount. Marathon agreed in August to sell its Speedway unit to Seven & i Holdings Co Ltd of Japan. 3382.T, an agreement that should be concluded next year.
Red ink and job cuts are expected in the oil industry as the results begin to air next month. US refiners generally prepare for the demand for winter fuel oil after the summer driving season ends. This year, the consumption of fuel oil and gasoline is depressed.
The pandemic has resulted in near-record lows in the margins of diesel, the product of choice for refineries as we enter the winter heating season, said Andrew Lipow, chairman of the board of Lipow Oil Associates.
The glut of refining capacity has forced these downstream companies to layoffs, he said.
Marathon this week notified employees of 100 layoffs at its refinery in Robinson, Ill., 60 at its refinery in Los Angeles, 57 at the refinery in Catlettsburg, Ky., 45 at the refinery in Garyville, Louisiana, 20 at the Canton, Ohio plant. and 15 in St. Paul Park, Minnesota, refinery, according to sources familiar with the matter.
Workers were also told of 108 job cuts at Marathons’ largest plant, the 585,000 barrels per day (b / d) refinery at Galveston Bay, Texas City, Texas. The total could reach over 200, people say.
This month, Royal Dutch Shell and LyondellBasell Industries both announced 10% workforce cuts. Major U.S. Oil Companies Chevron Corp CVX.N and Exxon Mobil Corp XOM.N are also restructuring their businesses to stop the losses.
Shell revealed on Tuesday that its refineries were operating between 64% and 68% of their capacity during the quarter ending today, a very low rate.
Marathon is expected to report a third quarter loss of $ 623 million on Nov. 2, according to IBES data from Refinitiv. It lost $ 9.2 billion in the first half, mostly due to write-downs.
Its shares traded at $ 29.34 on Wednesday, down a fraction. The stock is down 52% since the start of the year.
Reporting by Erwin Seba; Edited by Chizu Nomiyama, Aurora Ellis and Richard Pullin
What Are The Main Benefits Of Comparing Car Insurance Quotes Online
LOS ANGELES, CA / ACCESSWIRE / June 24, 2020, / Compare-autoinsurance.Org has launched a new blog post that presents the main benefits of comparing multiple car insurance quotes. For more info and free online quotes, please visit https://compare-autoinsurance.Org/the-advantages-of-comparing-prices-with-car-insurance-quotes-online/ The modern society has numerous technological advantages. One important advantage is the speed at which information is sent and received. With the help of the internet, the shopping habits of many persons have drastically changed. The car insurance industry hasn't remained untouched by these changes. On the internet, drivers can compare insurance prices and find out which sellers have the best offers. View photos The advantages of comparing online car insurance quotes are the following: Online quotes can be obtained from anywhere and at any time. Unlike physical insurance agencies, websites don't have a specific schedule and they are available at any time. Drivers that have busy working schedules, can compare quotes from anywhere and at any time, even at midnight. Multiple choices. Almost all insurance providers, no matter if they are well-known brands or just local insurers, have an online presence. Online quotes will allow policyholders the chance to discover multiple insurance companies and check their prices. Drivers are no longer required to get quotes from just a few known insurance companies. Also, local and regional insurers can provide lower insurance rates for the same services. Accurate insurance estimates. Online quotes can only be accurate if the customers provide accurate and real info about their car models and driving history. Lying about past driving incidents can make the price estimates to be lower, but when dealing with an insurance company lying to them is useless. Usually, insurance companies will do research about a potential customer before granting him coverage. Online quotes can be sorted easily. Although drivers are recommended to not choose a policy just based on its price, drivers can easily sort quotes by insurance price. Using brokerage websites will allow drivers to get quotes from multiple insurers, thus making the comparison faster and easier. For additional info, money-saving tips, and free car insurance quotes, visit https://compare-autoinsurance.Org/ Compare-autoinsurance.Org is an online provider of life, home, health, and auto insurance quotes. This website is unique because it does not simply stick to one kind of insurance provider, but brings the clients the best deals from many different online insurance carriers. In this way, clients have access to offers from multiple carriers all in one place: this website. On this site, customers have access to quotes for insurance plans from various agencies, such as local or nationwide agencies, brand names insurance companies, etc. "Online quotes can easily help drivers obtain better car insurance deals. All they have to do is to complete an online form with accurate and real info, then compare prices", said Russell Rabichev, Marketing Director of Internet Marketing Company. CONTACT: Company Name: Internet Marketing CompanyPerson for contact Name: Gurgu CPhone Number: (818) 359-3898Email: [email protected]: https://compare-autoinsurance.Org/ SOURCE: Compare-autoinsurance.Org View source version on accesswire.Com:https://www.Accesswire.Com/595055/What-Are-The-Main-Benefits-Of-Comparing-Car-Insurance-Quotes-Online View photos
to request, modification Contact us at Here or [email protected]