FINDLAY, Ohio (AP) -- Marathon Petroleum Corp. said Monday its business is being hurt by renewable fuels laws, and it forecast disappointing second-quarter results.
Marathon Petroleum said its refining and marketing businesses are being hurt by lower crude oil price differentials and other issues. It said it believes the Renewable Fuels Standard law affected its results.
Shares of Marathon Petroleum lost $2.70, or 3.7 percent, to $70.40 in after-hours trading after shedding 14 cents during regular trading.
The company said its net income will be between $570 million to $600 million, or $1.75 to $1.85 per share. That includes 12 cents per share in one-time pension settlement expenses. Analysts expected the company to earn $2.65 per share, according to FactSet.
Marathon Petroleum said it earned $814 million, or $2.38 per share, in the second quarter of 2012, including 15 cents per share in pension settlement costs.
The Renewable Fuels Standard law requires companies that sell petroleum in the U.S. to produce renewable fuels, like biodiesel made from vegetable oil. They can also purchase credits called renewable identification numbers, or RINs, from producers of those fuels to satisfy the requirement aimed at increasing clean energy.
Marathon Petroleum was the refining and pipelines business of Marathon Oil Corp. before it was spun off in 2012. It is scheduled to report its quarterly results Aug. 1.
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