Marathon Petroleum 3rd-Quarter Net Falls 86% Amid Higher Costs

       By Anna Prior 

    Marathon Petroleum Corp.'s (MPC) third-quarter profit fell 86% the refining-and-pipeline company recorded higher costs which masked a rise in revenue.

    Refiners had been taking advantage of cheap, domestically produced oil, which has helped margins. But oil prices rose earlier this year as data showed a bigger-than-expected drop in U.S. crude-oil supplies.

    Marathon Petroleum, which was spun off from Marathon Oil Corp. (MRO) in 2011, reported a profit of $168 million, or 54 cents a share, down from $1.22 billion, or $3.59 a share, a year earlier. Excluding pension-related costs and a year-ago settlement gain from the sale of Minnesota assets, adjusted earnings fell to 59 cents a share from $3.31.

    Sales and other operating revenue rose 24% to $26.3 billion.

    Analysts polled by Thomson Reuters recently forecasted per-share earnings of 61 cents on revenue of $21.37 billion.

    Total costs and expenses, meanwhile, climbed 34% to $25.97 billion.

    The refining-and-marketing segment's operating income fell 87% to $227 million. Income from the much smaller speedway and pipeline transportation segments rose to $102 million from $76 million a year earlier.

    Consolidated refined product sales volume rose 33%.

    Shares, inactive in premarket trading, closed at $72.51 on Wednesday. The stock has gained 15% since the start of the year.

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