UPDATE 1-Magellan Midstream halves Q2 profit view

* Slashes Q2 profit view by 52 pct to $0.30/LP unit

* Hurt by mark-to-market losses

* Lowers 2009 profit view to $2.50/LP unit

* Keeps 2009 distributable cash flow outlook

June 17 (Reuters) - Refined petroleum products distributor Magellan Midstream Partners LP (MMP.N) more than halved its second-quarter profit outlook, citing mark-to-market losses from a higher-than-expected rise in petroleum prices.

For the quarter ending June 30, the company expects to earn about 30 cents a unit, down from its prior forecast of 63 cents a unit.

Magellan also lowered its full-year profit forecast to $2.50 a unit from $2.60 a unit.

"Despite the accounting adjustments related to our commodity hedges that impact net income, the net sales margin we will ultimately earn from the underlying physical activities is very favorable," Chief Executive Don Wellendorf said.

The company also maintained its 2009 outlook for distributable cash flow -- the amount available to pay dividend -- of about $330 million.

The Tulsa, Oklahoma-based company's units were trading down 3 percent at $32.66 Wednesday morning on the New York Stock Exchange. (Reporting by Antonita Madonna Devotta in Bangalore; Editing by Anne Pallivathuckal)