UPDATE 2-Petroplus Q3 loss greater than forecast, shares drop

* Petroplus Q3 clean net loss $160 mln vs f'cast $91 million

* Shares fall nearly 7 pct, hit 2-1/2 month low

(Adds shares, comment and detail)

By Sven Egenter

ZURICH, Nov 5 (Reuters) - Petroplus Holding AG (PPHN.VX), Europe's largest independent oil refiner, posted a bigger than expected net loss of $259 million in the third quarter, hit by weak margins and increased cost of fuel consumed.

Its shares fell 6.5 percent to 21.66 Swiss francs by 0810 GMT on Thursday, versus a 1.4 percent drop in the DJ Stoxx European oil and gas index .SXEP. They fell as low as 21.20 francs, their lowest in 2-1/2 months Petroplus said its clean loss -- stripping out the impact of oil price changes on its inventory -- was $160 million, also behind forecasts.

Global recession has hurt demand for products like diesel and stockpiles have swelled, squeezing refiners' margins. Petroplus is particularly exposed to weak refining margins because its facilities are less sophisticated than rivals, and so it finds it harder to break even.

"After a decent Q2 result, Q3 came in clearly below expectations ... Despite the recent setback of the stock, there is more to come," Julius Baer analysts said in a note.

Petroplus has grown from a small Antwerp-based refiner over the past four years by buying refineries from oil majors who have reduced their exposure to this traditionally low-margin business.