(Reuters) - U.S. refiner Phillips 66 (PSX.N) reported a quarterly profit below analysts’ estimates due to higher costs for some of the U.S. crude oil it processes, sending its shares down 3 percent before the bell.
Phillips 66, which was spun off from ConocoPhillips (COP.N) in May 2012, said refining margins fell particularly in the U.S. Central Corridor and Gulf Coast regions.
The company’s refining business were also hurt by higher costs for ethanol credits. Costs to purchase Renewable Identification Numbers, mandated by the U.S. government, has spiked in recent months as refiners fear a shortfall next year.
To escape rising credit costs at home, some refiners are looking to export more refined products.
Phillips 66 said it increased refined product exports by 75,000 barrels per day to 181,000 barrels per day in the second quarter.
Net profit fell to $958 million, or $1.53 per share in the second quarter, from $1.2 billion, or $1.86 per share, a year earlier.
Adjusted profit was $1.50 per share, compared with analysts’ expectations of $1.83 per share, according to Thomson Reuters I/B/E/S.
Phillips 66 shares closed at $58.47 on the New York Stock Exchange on Tuesday.
Reporting by Swetha Gopinath and Anna Driver; Editing by Gerald E. McCormick