During a first-quarter earnings call, Chief Financial Officer John Quaid discussed operational performance: “The company’s renewable diesel facilities ran at approximately 70% capacity utilization during the first quarter, mainly as a result of unplanned downtime at both the Martinez facility, which is operated via a joint venture with Neste, and the company’s biorefinery in Dickinson, North Dakota.” He highlighted efforts to address these challenges, positioning both facilities for stronger performance in the second quarter.
Quaid noted that a revised tax credit structure posed the primary challenge for the renewable diesel segment in the first quarter. To improve efficiency, Marathon is optimizing operations at the Martinez biorefinery to reach full capacity. The company is also enhancing logistics and pretreatment capabilities to process a diverse range of feedstocks, aiming to improve profitability. Quaid added: “The company has addressed operational issues that limited production during the first quarter, with both biorefineries positioned to run well during the second quarter.”
The Martinez biorefinery, operated in partnership with Neste, and the Dickinson facility in North Dakota are central to Marathon’s renewable diesel strategy. By resolving production constraints and leveraging flexible operations, Marathon aims to increase output and capitalize on growing demand for renewable fuels. These efforts support the company’s commitment to sustainable energy solutions while maintaining financial resilience.
Marathon’s focus on operational improvements and margin growth reflects its adaptability in the evolving renewable diesel market. The company’s investments in biorefinery optimization and feedstock diversity are expected to drive performance in the coming quarters, contributing to its broader sustainability goals.
