PHILADELPHIA--(BUSINESS WIRE)--Nov. 5, 2008--Sunoco, Inc.
(NYSE:SUN) today reported net income of $549 million ($4.70 per share
diluted) for the third quarter of 2008 versus $216 million ($1.81 per
share diluted) for the third quarter of 2007. Excluding special items,
Sunoco had income for the 2008 third quarter of $559 million ($4.78
per share diluted). There were no special items in the third quarter
of 2007.
For the first nine months of 2008, Sunoco reported net income of
$572 million ($4.88 per share diluted) versus $900 million ($7.46 per
share diluted) in the first nine months of 2007. Excluding special
items, income in the first nine months of 2008 was $561 million ($4.79
per share diluted) versus $810 million ($6.71 per share diluted) in
the first nine months of 2007.
"After an extremely challenging market environment in the first
half of 2008, very strong margins in our Refining and Supply and
Retail Marketing businesses led to a record result in the third
quarter," said Lynn Elsenhans, Sunoco's Chief Executive Officer and
President. "Refining and Supply earned $424 million as falling crude
oil prices and reduced industry production related to the Gulf Coast
hurricane activity led to significantly improved margins. In addition,
optimization actions during the quarter greatly enhanced our capture
of available market opportunities. We reduced the amount of
Nigerian-sourced crude oil run at our refineries by more than 200,000
barrels per day versus historical levels during a period when premiums
for Nigerian grades remained high. At the same time, we continued to
optimize our product yields to maximize distillate production early in
the quarter when gasoline margins were weak and then increased
gasoline production during September as market demand for gasoline
increased.
"Demonstrating the diversity of our earnings base, Sunoco's
non-refining businesses earned $140 million during the third quarter,
their highest quarterly contribution ever. Retail Marketing earned $72
million despite lower year-over-year sales volumes as falling
wholesale gasoline prices through most of the quarter led to expanded
retail margins. Chemicals also benefited from falling feedstock costs
to earn $19 million despite some hurricane-related downtime at our
Houston-area facilities in September. Some assets in our Logistics
business were also impacted by the September hurricanes but otherwise
continued strong performance from Sunoco Logistics Partners LP
(NYSE:SXL) contributed to earnings of $20 million for this business.
Finally, Coke earned a record $29 million, reflecting a partial
contribution from our second cokemaking facility in Haverhill, Ohio
which began operations during the quarter. With an increased
contribution from these assets and the benefit of higher coal prices
in the fourth quarter, we continue to expect the Coke business to earn
approximately $110-$115 million for the full-year 2008."
Commenting on the Company's strategic outlook, Elsenhans said,
"While falling wholesale gasoline prices kept retail margins strong in
October, Gulf Coast refining supply is largely back on line following
the hurricanes and the slowing economy will likely continue to
suppress demand for refined products as we enter 2009. More than ever,
this market environment requires our continued focus to maintain
financial discipline. As of September 30, our net-debt-to-capital
ratio was 30 percent as defined by the covenant in our revolving
credit agreement. We had $327 million of cash on the balance sheet and
$1.8 billion of available liquidity, including funds available to SXL.
In addition, we have decided not to proceed with the previously
announced capital improvement project to upgrade the Tulsa refinery,
which will reduce planned spending by approximately $375 million.
Sunoco continues to pursue the potential sale of the facility and
re-evaluate our entire portfolio of assets to be responsive to
changing global market conditions and achieve enhanced shareholder
value. Further updates on each of these matters as well as additional
detail on our 2009 capital program will be discussed at a meeting for
securities analysts and investors to be held on December 15, 2008."
DETAILS OF THIRD QUARTER RESULTS
REFINING AND SUPPLY
Refining and Supply earned $424 million in the third quarter of
2008 versus $171 million in the third quarter of 2007. The increase in
earnings was primarily due to higher realized margins, partially
offset by higher expenses and lower production volumes. The higher
margins primarily resulted from tighter product markets following
storms in the U.S. Gulf Coast region.
RETAIL MARKETING
Retail Marketing earned $72 million in the third quarter of 2008
versus $31 million in the third quarter of 2007. The increase in
earnings was primarily due to higher average retail gasoline and
distillate margins, partially offset by lower retail gasoline sales
volumes and lower divestment gains. Results for the quarter included a
$5 million after-tax charge related to asset impairment losses and
associated costs in conjunction with the Company's Retail Portfolio
Management (RPM) program. The Company anticipates that the future
gains to be recognized from the divestment of sites under the RPM
program will exceed the impairment losses and associated costs
recognized during the quarter.
CHEMICALS
Chemicals earned $19 million in the third quarter of 2008 versus
$13 million in the prior-year period. The increase in earnings was due
primarily to higher margins, partially offset by lower sales volumes.
LOGISTICS
Earnings for the Logistics segment were $20 million in the third
quarter of 2008 versus $14 million in the third quarter of 2007. The
increase was due to continued improved results from SXL which
benefited from increased pipeline fees and higher lease acquisition
margins in its western pipeline system as well as higher earnings from
the eastern pipeline system and terminalling operations.
COKE
The Coke business earned $29 million in the third quarter of 2008
versus $7 million in the third quarter of 2007. The increase in
earnings was due primarily to increased price realizations from coal
and coke production and higher coke sales volumes at Jewell.
CORPORATE AND OTHER
Corporate administrative expenses (income) were $(2) million after
tax in the third quarter of 2008 versus $11 million after tax in the
third quarter of 2007. The decrease in expenses was primarily due to
an $11 million favorable income tax consolidation adjustment in the
third quarter of 2008. This adjustment essentially reversed
unfavorable adjustments recorded in the first half of the year.
Net financing expenses were $7 million after tax in the third
quarter of 2008 versus $9 million after tax in the third quarter of
2007. The decrease was primarily due to higher capitalized interest
and the absence of expense attributable to the preferential return of
third-party investors in Sunoco's Indiana Harbor cokemaking
operations, partially offset by lower interest income.
SPECIAL ITEMS
During the third quarter of 2008, Sunoco elected not to proceed
with a capital project at its Tulsa refinery and, as a result,
recorded a $10 million after-tax provision to write-off the
expenditures incurred to date on this project.
NINE MONTH RESULTS
Sunoco earned $572 million, or $4.88 per share of common stock on
a diluted basis, for the first nine months of 2008 versus $900
million, or $7.46 per share, in the comparable 2007 period. The
decrease was primarily due to lower margins in Sunoco's Refining and
Supply business. Also contributing to the decline were the absence of
a $90 million after-tax gain related to the prior issuance of SXL
limited partnership units, higher expenses, lower production of
refined products, lower gains on asset divestments, lower retail
gasoline and distillate sales volumes, and the provision for asset
write-downs associated with the canceled capital project at the Tulsa
refinery. Partially offsetting these negative factors were higher
average retail gasoline and distillate margins, higher income
attributable to Sunoco's Coke, Logistics and Chemicals businesses,
lower net financing expenses and an $11 million after-tax gain on an
insurance recovery and a $10 million after-tax gain pertaining to
certain income tax matters that were recognized in the second quarter
of 2008.
Sunoco, Inc., headquartered in Philadelphia, PA, is a leading
manufacturer and marketer of petroleum and petrochemical products.
With 910 thousand barrels per day of refining capacity, approximately
4,700 retail sites selling gasoline and convenience items,
approximately 5,500 miles of crude oil and refined product owned and
operated pipelines and 38 product terminals, Sunoco is one of the
largest independent refiner-marketers in the United States. Sunoco is
a significant manufacturer of petrochemicals with annual sales of
approximately five billion pounds, largely chemical intermediates used
to make fibers, plastics, film and resins. Utilizing a unique,
patented technology, Sunoco's cokemaking facilities in the United
States have the capacity to manufacture approximately 3.0 million tons
annually of high-quality metallurgical-grade coke for use in the steel
industry. Sunoco also is the operator of, and has an equity interest
in, a 1.7 million tons-per-year cokemaking facility in Vitoria,
Brazil.
Anyone interested in obtaining further insights into the third
quarter's results can monitor the Company's quarterly teleconference
call, which is scheduled for 3:00 p.m. ET on November 6, 2008. It can
be accessed through Sunoco's website - www.SunocoInc.com. It is
suggested that you visit the site prior to the teleconference to
ensure that you have downloaded any necessary software.
Those statements made in this release that are not historical
facts are forward-looking statements intended to be covered by the
safe harbor provisions of Section 27A of the Securities Act of 1933
and Section 21E of the Securities Exchange Act of 1934. Although
Sunoco believes that the assumptions underlying these statements are
reasonable, investors are cautioned that such forward-looking
statements are inherently uncertain and necessarily involve risks that
may affect Sunoco's business prospects and performance, causing actual
results to differ materially from those discussed in this release.
Such risks and uncertainties include, by way of example and not of
limitation: general economic, financial and business conditions which
could affect Sunoco's financial condition and results of operations;
changes in competition and competitive practices, including the impact
of foreign imports; effects of weather conditions and natural
disasters on the Company's operating facilities and on product supply
and demand; changes in refining, marketing and chemical margins;
changes in coal and coke prices; variation in crude oil and
petroleum-based commodity prices and availability of crude oil and
feedstock supply or transportation; effects of transportation
disruptions; changes in the price differentials between light-sweet
and heavy-sour crude oils; changes in the marketplace which may affect
supply and demand for Sunoco's products; changes in the level of
capital expenditures or operating expenses; changes in product
specifications; availability and pricing of ethanol; changes in the
level of environmental capital, operating or remediation expenditures;
age of, and changes in the reliability, efficiency and capacity of,
the Company's operating facilities or those of third parties; effects
of adverse events relating to the operation of the Company's
facilities and to the transportation and storage of hazardous
materials (including equipment malfunction, explosions, fires, spills,
and the effects of severe weather conditions); risks related to labor
relations and workplace safety; changes in, or new, statutes and
government regulations or their interpretations, including those
relating to the environment and global warming; changes in accounting
rules and/or tax laws or their interpretations, including the method
of accounting for inventories and pensions; ability to identify
acquisitions, execute them under favorable terms and integrate them
into the Company's existing businesses; ability to enter into joint
ventures and other similar arrangements under favorable terms; delays
and/or costs related to construction, improvements and/or repairs of
facilities (including shortages of skilled labor, the issuance of
applicable permits and inflation); nonperformance or force majeure by,
or disputes with, major customers, suppliers, dealers, distributors or
other business partners; changes in credit terms required by
suppliers; changes in financial markets impacting pension expense and
funding requirements; political and economic conditions in the markets
in which the Company, its suppliers or customers operate, including
the impact of potential terrorist acts and international hostilities;
military conflicts between, or internal instability in, one or more
oil producing countries, governmental actions and other disruptions in
the ability to obtain crude oil; changes in the availability and cost
of equity and debt financing, including amounts under the Company's
revolving credit facilities; performance of financial institutions
impacting the Company's liquidity, including those supporting the
Company's revolving credit and accounts receivable securitization
facilities; changes in the credit ratings assigned to the Company's
debt securities or credit facilities; and changes in the status of, or
initiation of new, litigation, arbitration or other proceedings to
which the Company is a party or liability resulting from such
litigation, arbitration or other proceedings, including natural
resource damage claims. These and other applicable risks and
uncertainties have been described more fully in Sunoco's Second
Quarter 2008 Form 10-Q filed with the Securities and Exchange
Commission on August 7, 2008 and in other periodic reports filed with
the Securities and Exchange Commission. Sunoco undertakes no
obligation to update any forward-looking statements in this release,
whether as a result of new information or future events.
-END OF TEXT, CHARTS FOLLOW-
Sunoco, Inc.
2008 Third Quarter and Nine-Month Financial Summary
(Unaudited)
Third Quarter 2008 2007
-------------------------------------- --------------- ---------------
Revenues $16,109,000,000 $11,497,000,000
Net Income $ 549,000,000 $ 216,000,000
Net Income Per Share of Common Stock:
Basic $ 4.70 $ 1.82
Diluted $ 4.70 $ 1.81
Weighted-Average Number of Shares
Outstanding (In Millions):
Basic 116.9 119.0
Diluted 116.9 119.2
Nine Months
--------------------------------------
Revenues $45,006,000,000 $31,566,000,000
Net Income $ 572,000,000 $ 900,000,000
Net Income Per Share of Common Stock:
Basic $ 4.89 $ 7.48
Diluted $ 4.88 $ 7.46
Weighted-Average Number of Shares
Outstanding (In Millions):
Basic 117.0 120.4
Diluted 117.1 120.7
Sunoco, Inc.
Earnings Profile of Sunoco Businesses (after tax)
(Millions of Dollars, Except Per-Share Amounts)
(Unaudited)
Three Months
Ended
September 30
-------------
2008 2007 Variance
------ ------ --------
Refining and Supply $ 424 $ 171 $ 253
Retail Marketing 72 31 41
Chemicals 19 13 6
Logistics 20 14 6
Coke 29 7 22
Corporate and Other:
Corporate expenses 2 (11) 13
Net financing expenses and other (7) (9) 2
------ ------ --------
559 216 343
Special items (10) -- (10)
------ ------ --------
Consolidated net income $ 549 $ 216 $ 333
====== ====== ========
Earnings per share of common stock (diluted):
Income before special items $4.78 $1.81 $ 2.97
Special items (.08) -- (.08)
------ ------ --------
Net income $4.70 $1.81 $ 2.89
====== ====== ========
Sunoco, Inc.
Earnings Profile of Sunoco Businesses (after tax)
(Millions of Dollars, Except Per-Share Amounts)
(Unaudited)
Nine Months
Ended
September 30
-------------
2008 2007 Variance
------ ------ --------
Refining and Supply $ 333 $ 729 $ (396)
Retail Marketing 98 68 30
Chemicals 40 28 12
Logistics 56 33 23
Coke 77 31 46
Corporate and Other:
Corporate expenses (26) (44) 18
Net financing expenses and other (17) (35) 18
------ ------ --------
561 810 (249)
Special items 11 90 (79)
------ ------ --------
Consolidated net income $ 572 $ 900 $ (328)
====== ====== ========
Earnings per share of common stock (diluted):
Income before special items $4.79 $6.71 $(1.92)
Special items .09 .75 (.66)
------ ------ --------
Net income $4.88 $7.46 $(2.58)
====== ====== ========
Sunoco, Inc.
Financial and Operating Statistics (Unaudited)
----------------------------------------------------------------------
For the Three For the Nine
Months Ended Months Ended
September 30 September 30
------------- -------------
2008 2007 2008 2007
------ ------ ------ ------
TOTAL REFINING AND SUPPLY
Income (Millions of Dollars) $ 424 $ 171 $ 333 $ 729
Realized Wholesale Margin* (Per Barrel of
Production Available for Sale) $14.72 $ 8.06 $ 8.51 $ 9.94
Crude Inputs as Percent of Crude Unit
Rated Capacity** 88 96 86 91
Throughputs (Thousand Barrels Daily):
Crude Oil 803.6 873.1 782.5 818.3
Other Feedstocks 89.4 79.1 83.3 79.0
----------------------------------------------------------------------
Total Throughputs 893.0 952.2 865.8 897.3
======================================================================
Products Manufactured (Thousand Barrels
Daily):
Gasoline 404.8 456.9 397.3 432.3
Middle Distillates 331.1 329.0 317.2 304.1
Residual Fuel 58.1 73.2 55.2 66.3
Petrochemicals 38.5 37.7 35.7 36.3
Lubricants 11.6 11.1 11.7 11.7
Other 81.1 80.4 80.6 79.6
----------------------------------------------------------------------
Total Production 925.2 988.3 897.7 930.3
Less: Production Used as Fuel in
Refinery Operations 41.3 45.5 40.2 43.2
----------------------------------------------------------------------
Total Production Available for Sale 883.9 942.8 857.5 887.1
======================================================================
* Wholesale sales revenue less related cost of crude oil, other
feedstocks, product purchases and terminalling and transportation
divided by production available for sale.
** Reflects the impact of a 10 thousand barrels-per-day increase in
crude unit capacity in MidContinent Refining in July 2007
attributable to a crude unit debottleneck project at the Toledo
refinery.
Sunoco, Inc.
Financial and Operating Statistics (Unaudited)
----------------------------------------------------------------------
For the Three For the Nine
Months Ended Months Ended
September 30 September 30
------------- -------------
2008 2007 2008 2007
------ ------ ------ ------
Northeast Refining*
Realized Wholesale Margin (Per Barrel of
Production Available for Sale) $15.20 $ 6.35 $ 8.70 $ 8.05
Market Benchmark 6-3-2-1 (Value Added)
(Per Barrel) $11.98 $ 8.46 $ 9.51 $10.25
Crude Inputs as Percent of Crude Unit
Rated Capacity 88 98 86 91
Throughputs (Thousand Barrels Daily):
Crude Oil 573.6 643.2 562.3 599.1
Other Feedstocks 79.4 69.3 74.3 69.1
----------------------------------------------------------------------
Total Throughputs 653.0 712.5 636.6 668.2
======================================================================
Products Manufactured (Thousand Barrels
Daily):
Gasoline 306.9 342.7 299.3 320.1
Middle Distillates 236.6 249.8 231.6 230.5
Residual Fuel 53.1 67.9 50.4 62.1
Petrochemicals 31.0 29.3 29.1 28.0
Other 48.8 47.7 49.0 49.3
----------------------------------------------------------------------
Total Production 676.4 737.4 659.4 690.0
Less: Production Used as Fuel in
Refinery Operations 30.2 34.1 29.4 31.9
----------------------------------------------------------------------
Total Production Available for Sale 646.2 703.3 630.0 658.1
======================================================================
MidContinent Refining**
Realized Wholesale Margin (Per Barrel of
Production Available for Sale) $13.41 $13.10 $ 7.99 $15.37
Market Benchmark 3-2-1 (Per Barrel) $15.51 $17.02 $11.22 $18.80
Crude Inputs as Percent of Crude Unit
Rated Capacity*** 90 90 86 88
Throughputs (Thousand Barrels Daily):
Crude Oil 230.0 229.9 220.2 219.2
Other Feedstocks 10.0 9.8 9.0 9.9
----------------------------------------------------------------------
Total Throughputs 240.0 239.7 229.2 229.1
======================================================================
* Comprised of the Marcus Hook, Philadelphia and Eagle Point
refineries.
** Comprised of the Toledo and Tulsa refineries.
*** Reflects the impact of a 10 thousand barrels-per-day increase in
crude unit capacity in July 2007 attributable to a crude unit
debottleneck project at the Toledo refinery.
Sunoco, Inc.
Financial and Operating Statistics (Unaudited)
----------------------------------------------------------------------
For the Three For the Nine
Months Ended Months Ended
September 30 September 30
----------------- -----------------
2008 2007 2008 2007
-------- -------- -------- --------
MidContinent Refining (continued)
Products Manufactured (Thousand
Barrels Daily):
Gasoline 97.9 114.2 98.0 112.2
Middle Distillates 94.5 79.2 85.6 73.6
Residual Fuel 5.0 5.3 4.8 4.2
Petrochemicals 7.5 8.4 6.6 8.3
Lubricants 11.6 11.1 11.7 11.7
Other 32.3 32.7 31.6 30.3
----------------------------------------------------------------------
Total Production 248.8 250.9 238.3 240.3
Less: Production Used as Fuel
in Refinery Operations 11.1 11.4 10.8 11.3
----------------------------------------------------------------------
Total Production Available
for Sale 237.7 239.5 227.5 229.0
======================================================================
RETAIL MARKETING
Income (Millions of Dollars) $72 $31 $98 $68
Retail Margin* (Per Barrel):
Gasoline $7.85 $4.68 $5.20 $4.15
Middle Distillates $5.94 $3.41 $5.95 $4.88
Sales (Thousand Barrels Daily):
Gasoline 287.0 302.9 288.5 303.2
Middle Distillates 37.3 37.3 37.4 41.3
----------------------------------------------------------------------
324.3 340.2 325.9 344.5
======================================================================
Total Retail Gasoline Outlets, End
of Period 4,716 4,687 4,716 4,687
Gasoline and Diesel Throughput per
Company-Owned or Leased Outlet (M
Gal/Site/Month) 150 154 148 149
Convenience Stores:
Total Stores, End of Period 706 730 706 730
Merchandise Sales
(M$/Store/Month) $90 $91 $84 $84
Merchandise Margin (Company
Operated) (% of Sales) 27% 27% 27% 27%
======================================================================
* Retail sales price less related wholesale price, terminalling and
transportation costs and consumer excise taxes per barrel. The retail
sales price is the weighted-average price received through the
various branded marketing distribution channels.
Sunoco, Inc.
Financial and Operating Statistics (Unaudited)
----------------------------------------------------------------------
For the Three For the Nine
Months Ended Months Ended
September 30 September 30
------------------ ------------------
2008 2007 2008 2007
-------- -------- -------- --------
CHEMICALS
Income (Millions of Dollars) $19 $13 $40 $28
Margin* (Cents per Pound):
All Products** 12.0 10.0 10.6 10.1
Phenol and Related Products 10.6 8.7 9.1 8.6
Polypropylene** 14.0 11.7 12.5 11.9
Sales (Millions of Pounds):
Phenol and Related Products 607 633 1,797 1,869
Polypropylene 531 623 1,662 1,747
Other 14 19 57 61
----------------------------------------------------------------------
1,152 1,275 3,516 3,677
======================================================================
* Wholesale sales revenue less cost of feedstocks, product purchases
and related terminalling and transportation divided by sales volumes.
** The polypropylene and all products margins include the impact of a
long-term supply contract with Equistar Chemicals, L.P. which is
priced on a cost-based formula that includes a fixed discount.
LOGISTICS
Income (Millions of Dollars) $20 $14 $56 $33
Pipeline and Terminal Throughput
(Thousand Barrels Daily)*:
Unaffiliated Customers 1,154 1,127 1,195 1,152
Affiliated Customers 1,623 1,710 1,582 1,645
----------------------------------------------------------------------
2,777 2,837 2,777 2,797
======================================================================
* Excludes joint-venture operations.
COKE
Income (Millions of Dollars) $29 $7 $77 $31
Coke Production (Thousands of
Tons):
United States 693* 621 1,920* 1,852
Brazil** 408 403 1,200 672
======================================================================
* Includes amounts attributable to a second 550 thousand tons-per-year
cokemaking facility at SunCoke Energy's Haverhill site which
commenced limited operations in July 2008.
** Represents amounts attributable to the facility in Vitoria, Brazil
which commenced limited operations in March 2007.
Sunoco, Inc.
Financial and Operating Statistics (Unaudited)
----------------------------------------------------------------------
For the Three For the Nine
Months Ended Months Ended
September 30 September 30
------------- -------------
2008 2007 2008 2007
------ ------ ------ ------
CAPITAL EXPENDITURES (Millions of Dollars)
Refining and Supply $ 147 $ 118 $ 492 $ 562
Retail Marketing 30 27 73 65
Chemicals 11 14 32 41
Logistics 37 21 88 85
Coke 106 52 207 123
----------------------------------------------------------------------
$ 331 $ 232 $ 892 $ 876
======================================================================
DEPRECIATION, DEPLETION AND
AMORTIZATION (Millions of Dollars)
Refining and Supply $ 67 $ 62 $ 198 $ 176
Retail Marketing 28 27 80 80
Chemicals 17 19 50 56
Logistics 10 10 35 28
Coke 7 5 18 15
----------------------------------------------------------------------
$ 129 $ 123 $ 381 $ 355
======================================================================
Sunoco, Inc.
Earnings Profile of Sunoco Businesses (after tax)
(Millions of Dollars, Except Per-Share Amounts)
(Unaudited)
2007
----------------------------------
1st 2nd 3rd 4th Total
----------------------------------
Refining and Supply $ 76 $ 482 $ 171 $ 43 $ 772
Retail Marketing 7 30 31 1 69
Chemicals 9 6 13 (2) 26
Logistics 9 10 14 12 45
Coke 11 13 7 (2) 29
Corporate and Other:
Corporate expenses (15) (18) (11) (23) (67)
Net financing expenses and other (12) (14) (9) (6) (41)
------ ------ ------ ------ ------
85 509 216 23 833
Special items 90 -- -- (32) 58
------ ------ ------ ------ ------
Consolidated net income (loss) $ 175 $ 509 $ 216 $ (9) $ 891
====== ====== ====== ====== ======
Earnings (loss) per share of common
stock (diluted):
Income before special items $ .70 $4.20 $1.81 $ .20 $6.94
Special items .74 -- -- (.28) .49
------ ------ ------ ------ ------
Net income (loss) $1.44 $4.20 $1.81 $(.08) $7.43
====== ====== ====== ====== ======
Sunoco, Inc.
Earnings Profile of Sunoco Businesses (after tax)
(Millions of Dollars, Except Per-Share Amounts)
(Unaudited)
2008
-------------------
1st 2nd 3rd
-------------------
Refining and Supply $(123) $ 32 $ 424
Retail Marketing 26 -- 72
Chemicals 18 3 19
Logistics 15 21 20
Coke 25 23 29
Corporate and Other:
Corporate expenses (17) (11) 2
Net financing expenses and other (3) (7) (7)
------ ----- ------
(59) 61 559
Special Items -- 21 (10)
------ ----- ------
Consolidated net income (loss) $ (59) $ 82 $ 549
====== ===== ======
Earnings (loss) per share of common stock
(diluted):
Income (loss) before special items $(.50) $.52 $4.78
Special items -- .18 (.08)
------ ----- ------
Net income (loss) $(.50) $.70 $4.70
====== ===== ======
Sunoco, Inc.
Consolidated Statements of Operations
(Millions of Dollars)
(Unaudited)
2007
-------------------------------------------
1st 2nd 3rd 4th Total
-------------------------------------------
REVENUES
Sales and other operating
revenue (including
consumer excise taxes) $9,135 $10,724 $11,475 $13,136 $44,470
Interest income 5 4 7 9 25
Gain related to issuance
of Sunoco Logistics
Partners L.P. limited
partnership units 151 -- -- -- 151
Other income, net 14 36 15 17 82
------- -------- -------- -------- --------
9,305 10,764 11,497 13,162 44,728
------- -------- -------- -------- --------
COSTS AND EXPENSES
Cost of products sold and
operating expenses 7,988 8,865 10,078 12,040 38,971
Consumer excise taxes 641 669 673 644 2,627
Selling, general and
administrative expenses 221 236 221 274 952
Depreciation, depletion
and amortization 115 117 123 125 480
Payroll, property and
other taxes 37 30 36 32 135
Provision for asset write-
downs and other matters -- -- -- 53 53
Interest cost and debt
expense 35 32 29 31 127
Interest capitalized (9) (5) (5) (7) (26)
------- -------- -------- -------- --------
9,028 9,944 11,155 13,192 43,319
Income (loss) before
income tax expense
(benefit) 277 820 342 (30) 1,409
Income tax expense
(benefit) 102 311 126 (21) 518
------- -------- -------- -------- --------
Net income (loss) $ 175 $ 509 $ 216 $ (9) $ 891
======= ======== ======== ======== ========
Sunoco, Inc.
Consolidated Statements of Operations
(Millions of Dollars)
(Unaudited)
2008
--------------------------
1st 2nd 3rd
--------------------------
REVENUES
Sales and other operating revenue
(including
consumer excise taxes) $12,796 $16,061 $16,092
Interest income 9 3 4
Other income, net 8 20 13
-------- -------- --------
12,813 16,084 16,109
-------- -------- --------
COSTS AND EXPENSES
Cost of products sold and operating
expenses 11,935 14,951 14,155
Consumer excise taxes 590 635 645
Selling, general and administrative
expenses 198 222 235
Depreciation, depletion and amortization 128 124 129
Payroll, property and other taxes 42 34 39
Provision for asset write-downs and other
matters -- (18) 17
Interest cost and debt expense 28 28 27
Interest capitalized (9) (8) (9)
-------- -------- --------
12,912 15,968 15,238
Income (loss) before income tax expense
(benefit) (99) 116 871
Income tax expense (benefit) (40) 34 322
-------- -------- --------
Net income (loss) $ (59) $ 82 $ 549
======== ======== ========
Sunoco, Inc.
Consolidated Balance Sheets
(Millions of Dollars)
(Unaudited)
At At
September 30 December 31
2008 2007
------------ ------------
ASSETS
Current Assets
Cash and cash equivalents $ 327 $ 648
Accounts and notes receivable, net 3,248 2,710
Inventories 1,108 1,150
Deferred income taxes 132 130
------------ ------------
Total Current Assets 4,815 4,638
Investments and long-term receivables 171 175
Properties, plants and equipment, net 7,539 7,039
Deferred charges and other assets 513 574
------------ ------------
Total Assets $ 13,038 $ 12,426
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts payable and accrued liabilities $ 5,456 $ 5,443
Short-term borrowings 103 --
Current portion of long-term debt 148 4
Taxes payable 259 193
------------ ------------
Total Current Liabilities 5,966 5,640
Long-term debt 1,483 1,724
Retirement benefit liabilities 506 525
Deferred income taxes 1,116 1,027
Other deferred credits and liabilities 550 538
Minority interests 444 439
Shareholders' equity 2,973 2,533
------------ ------------
Total Liabilities and Shareholders' Equity $ 13,038 $ 12,426
============ ============
Sunoco, Inc.
Consolidated Statements of Cash Flows
(Millions of Dollars)
(Unaudited)
For the Nine Months
Ended September 30
-------------------
2008 2007
--------- ---------
INCREASES (DECREASES) IN CASH AND CASH EQUIVALENTS
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 572 $ 900
Adjustments to reconcile net income to net cash
provided by operating activities:
Gain related to issuance of Sunoco Logistics
Partners L.P. limited partnership units -- (151)
Provision for asset write-downs and other
matters (1) --
Depreciation, depletion and amortization 381 355
Deferred income tax expense 71 153
Minority interest share of Sunoco Logistics
Partners L.P. income 61 40
Payments less than (in excess of) expense for
retirement plans 5 (49)
Changes in working capital pertaining to
operating activities (388) 23
Other 37 (14)
--------- ---------
Net cash provided by operating activities 738 1,257
--------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures (892) (876)
Proceeds from divestments 15 46
Other 36 (30)
--------- ---------
Net cash used in investing activities (841) (860)
--------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES:
Net repayments of short-term borrowings -- (25)
Net proceeds from issuance of long-term debt 121 244
Repayments of long-term debt (115) (167)
Cash distributions to investors in cokemaking
operations (26) (19)
Cash distributions to investors in Sunoco
Logistics Partners L.P. (45) (41)
Cash dividend payments (102) (97)
Purchases of common stock for treasury (49) (300)
Proceeds from issuance of common stock under
management incentive plans -- 6
Other (2) 2
--------- ---------
Net cash used in financing activities (218) (397)
--------- ---------
Net decrease in cash and cash equivalents (321) --
Cash and cash equivalents at beginning of period 648 263
--------- ---------
Cash and cash equivalents at end of period $ 327 $ 263
========= =========
CONTACT: Sunoco, Inc.
Thomas Golembeski (media) 215-977-6298
Tom Harr (investors) 215-977-6764
SOURCE: Sunoco, Inc.
