Marathon Petroleum Corporation (NYSE: MPC
) said on Monday that its fiscal second-quarter results will be impacted due to Renewable Fuels Standard Law.
The Findlay, Ohio-based Company said that its refining and marketing business will feel the heat due to lower crude oil differentials and some other factors such as product realizations compared to spot market prices, which the company attributed to Renewable Fuels Standard Law.
The Company now expects net income to be in the range of $570 million to $600 million or $1.75 to $1.85 a share. The Company said it included a charge of 12 cents a share towards one-time pension settlement. Analysts surveyed by FactSet had forecasted earnings of $2.65 a share.
In the same quarter of last fiscal year, the Company reported net income of $814 million or $2.38 a share, including a charge of 15 cents a share, linked to pension settlement costs.
According to Renewable Fuels Standard Law, companies that are in business of selling petroleum will now be required to produce renewable fuels such as biodiesel extracted from vegetable oil. Besides, these companies can also buy credits, dubbed as renewable identification numbers (RINs) from companies that produce environmentally efficient fuels—in order to fulfill requirements laid out for increasing the usage of clean energy.
The Company is slated to report fiscal second quarter results on August 1.