UPDATE 1-Marathon Q2 profit falls on higher costs, lower refining margin

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July 27 (Reuters) - Refiner Marathon Petroleum Corp reported a 35.7 percent fall in quarterly profit, hurt by higher expenses and as income from refining nearly halved.

Marathon, the first major U.S. refiner to report quarterly results, said refining and marketing gross margin fell to $11.32 per barrel in the second quarter ended June 30 from $12.73 last year.

Total costs and expenses rose about 12 percent to $17.33 billion in the reported quarter.

Income from the company's refining and marketing segment, which accounted for more than half the total income, fell 45.2 percent to $562 million in the quarter.

Net income attributable to Marathon fell to $515 million, or $1 per share, in the second quarter ended June 30, from $801 million, or $1.51 per share, a year earlier.

Revenues and other income rose 9.3 percent to $18.35 billion. (Reporting by Muvija M in Bengaluru; Editing by Amrutha Gayathri)