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Marathon Petroleum sees lower quarterly earnings
(Reuters) - Marathon Petroleum Corp (MPC.N) on Monday said it expects lower second-quarter earnings as the cost of some of the crude oil it processes into fuels rose.
Last week, Valero Energy Corp (VLO.N) issued a similar profit warning. U.S. refining companies have seen profits wither as their oil costs increased because discounts of inland U.S. crude oil to global crudes shrunk. The companies also both cited rising costs for U.S. ethanol blending credits, known as RINs.
Marathon said it expects a profit of $570 million to $600 million, or $1.75 to $1.85 per diluted share, for the second quarter of 2013, compared with earnings of $814 million, or $2.38 per diluted share, for the second quarter of 2012.
The U.S. Environmental Protection Agency (EPA) requires renewable identification numbers as proof of compliance with gasoline blending requirements for renewable fuels such as ethanol. If refiners and importers of gasoline do not blend enough ethanol, they must buy RIN credits on the open market to make up the shortfall.
Refiners blend up to 10 percent ethanol with gasoline, a limit they and automakers consider safe for most vehicles.
Shares of Findlay, Ohio, based Marathon were about 2 percent lower in post-market trading to $71.65.
(Reporting by Anna Driver; Editing by Bob Burgdorfer)
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