FINDLAY, Ohio (AP) -- Marathon Petroleum Corp. said Thursday that its second-quarter net income fell by 27 percent, as crude oil costs rose and expenses grew.
Its adjusted results topped Wall Street's expectations, but revenue fell short of analysts' estimates.
The Findlay, Ohio, company, which was the refining and pipelines business of Marathon Oil Corp. before it was spun off last year, earned $593 million, or $1.83 per share, for the period ended June 30. A year ago it made $814 million, or $2.38 per share.
Excluding one-time items, earnings were $1.95 per share.
Analysts surveyed by FactSet expected earnings of $1.94 per share.
Marathon Petroleum shares rose $1.72, or 2.4 percent, to $75.05 in morning trading amid a broad market rally.
Last month Marathon cautioned that its business was being hurt by renewable fuels laws. At that time it predicted quarterly earnings of $1.75 to $1.85 per share.
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.
President and CEO Gary Heminger said in a statement that while Marathon paid more for crude oil in the recent quarter, the market was not as willing to pay more for its gas. When that happens it can cut into a refiner's margins. Heminger also said that Marathon had to deal with a volatile Chicago market and the renewable fuels laws during the quarter.
Total costs and expenses increased to $24.74 billion from $18.95 billion.
Revenue climbed 27 percent to $25.70 billion but missed Wall Street's forecast of $25.96 billion.