Sunoco Reports Third Quarter 2009 Results
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PHILADELPHIA--(BUSINESS WIRE)-- Sunoco, Inc. (NYSE: SUN) today reported a net loss attributable to Sunoco shareholders of $312 million ($2.67 per share diluted) for the third quarter of 2009 versus net income attributable to Sunoco shareholders of $549 million ($4.70 per share diluted) for the third quarter of 2008. Excluding special items, Sunoco had a loss for the 2009 third quarter of $34 million ($0.29 per share diluted) versus 2008 third quarter income of $559 million ($4.78 per share diluted).
For the first nine months of 2009, Sunoco reported a net loss attributable to Sunoco shareholders of $355 million ($3.04 per share diluted) versus net income attributable to Sunoco shareholders of $572 million ($4.88 per share diluted) for the first nine months of 2008. Excluding special items, Sunoco reported a loss of $6 million ($0.05 per share diluted) in the first nine months of 2009 versus 2008 first nine months income of $561 million ($4.79 per share diluted).
"During the third quarter, refining and chemicals results continued to be impacted by weak demand, but our other businesses continued to generate steady earnings," said Lynn L. Elsenhans, Sunoco's Chairman and Chief Executive Officer. "The earnings contribution from our non-refining businesses improved to $102 million in the third quarter, up from $78 million in the second quarter. Retail Marketing benefited from stable wholesale prices, earning $49 million, while Logistics earned $19 million and our Coke business earned $35 million."
Commenting on the Company's outlook, Elsenhans said, "We continue to expect a challenging market for petroleum and chemical products due to ongoing economic weakness and additional global supply. However, the Company has taken steps to improve our competitive cost position and optimize our portfolio and operational performance. Specifically, on October 6, we announced the indefinite idling of the Eagle Point refinery in an effort to reduce losses in our refining business at a time when weak demand and increased global refining capacity have created margin pressure on the entire refining industry. This effort will shift current Eagle Point production to our nearby refineries in Marcus Hook and Philadelphia, which will operate at higher capacity utilization and allow us to reduce our breakeven costs. We also continued to make progress on cost reductions through our business improvement initiative and took steps to further optimize our portfolio through the divestiture of our retail heating oil and propane distribution business. Additionally, we have recently informed our employees of changes to our defined benefit pension plan and postretirement medical coverage which will reduce our employee-related costs and future cash needs to fund the plans. These initiatives, coupled with our spending discipline and our previously announced dividend reduction in 2010, will allow us to maintain our financial flexibility as we manage through this refining down cycle."
DETAILS OF THIRD QUARTER RESULTS
REFINING AND SUPPLY- Continuing Operations
Refining and Supply had a loss from continuing operations totaling $118 million in the current quarter versus income of $398 million in the third quarter of 2008. The decrease in results was due to lower realized margins and lower production volumes, partially offset by lower expenses. Our realized margins and crude utilization rate were negatively affected by market weakness during the quarter. The overall crude utilization rate was 74 percent for the quarter which includes the impact of a planned turnaround at our Toledo refinery and a planned one-month maintenance outage at a fluid catalytic cracking unit in our Philadelphia refinery. The process for idling the Eagle Point refinery continues and all processing units have ceased production this week.
REFINING AND SUPPLY- Discontinued Operations
Discontinued Tulsa refining operations, which were divested on June 1, 2009, had income of $26 million in the third quarter of 2008.
RETAIL MARKETING
Retail Marketing earned $49 million in the current quarter versus $72 million in the third quarter of 2008. The decrease in earnings was primarily due to lower average retail gasoline margins, partially offset by lower expenses. Sales volumes were relatively flat versus the year-ago quarter. Retail gasoline margins in the third quarter of 2008 benefited from the rapid decrease in wholesale prices during that period.
CHEMICALS
Chemicals reported a loss of $1 million in the third quarter of 2009 versus income of $19 million in the third quarter of 2008. The decrease in results was due primarily to lower margins and sales volumes, partially offset by lower expenses.
LOGISTICS
Logistics earned $19 million in the third quarter of 2009 versus $20 million in the third quarter of 2008. Additional earnings from a refined products pipeline and terminal system acquired in November 2008 were essentially offset by lower lease acquisition results.
COKE
Coke earned $35 million in the third quarter of 2009 compared to $29 million in the third quarter of 2008. The increase in earnings was primarily due to improved results from Jewell operations largely associated with higher price realizations from coke production.
CORPORATE AND OTHER
Corporate Expenses - Corporate administrative expenses (income) were $6 million after tax in the third quarter of 2009 versus $(2) million after tax in the third quarter of 2008. Corporate expenses included favorable income tax consolidation adjustments amounting to $5 and $11 million in the third quarters of 2009 and 2008, respectively, which reversed unfavorable adjustments recorded in the first six months of those years.
Net Financing Expenses and Other - Net financing expenses and other were $12 million after tax in the third quarter of 2009 versus $7 million after tax in the third quarter of 2008. The increase was primarily due to higher interest expense.
SPECIAL ITEMS
During the third quarter of 2009, Sunoco recorded a $278 million after-tax provision in connection with its plan to idle indefinitely all process units at the Eagle Point refinery, of which $254 million represents non-cash charges; recorded a $14 million after-tax charge in connection with the business improvement initiative, all of which was attributable to a non-cash provision for pension and postretirement settlement losses; recorded a $12 million after-tax non-cash provision to write down to estimated fair value certain other assets in the Refining and Supply business; and recognized a $26 million after-tax gain on divestment of the retail heating oil and propane distribution business. The total net impact of special items during the third quarter of 2009 is a charge of $278 million after tax.
During the third quarter of 2008, Sunoco recognized a $10 million after-tax provision to write-off certain assets attributable to its discontinued Tulsa operations.
PENSION AND POSTRETIREMENT HEALTHCARE CHANGES
Effective June 30, 2010, pension benefits under the Company's defined benefit pension plans will be frozen for most employees. Similarly, postretirement medical benefits for the majority of future retirees will be phased out for those employees retiring after July 1, 2010. These moves will bring the Company more predictable retirement plan costs and cash flow. By freezing the benefits, Sunoco's future financial liabilities and requirements for cash contributions to the pension plans and funding of retiree health care will be substantially reduced.
Sunoco, Inc., headquartered in Philadelphia, PA, is a leading manufacturer and marketer of petroleum and petrochemical products. With 825 thousand barrels per day of refining capacity, approximately 4,700 retail sites selling gasoline and convenience items, approximately 6,000 miles of crude oil and refined product owned and operated pipelines and approximately 40 product terminals, Sunoco is one of the largest independent refiner-marketers in the United States. Sunoco is a significant manufacturer of petrochemicals with annual production capacity 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 5:30 p.m. ET on November 5, 2009. 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. These forward-looking statements are based upon assumptions by the Company concerning future conditions, any or all of which ultimately may prove to be inaccurate, and upon the current knowledge, beliefs and expectations of Company management. These forward-looking statements are not guarantees of future performance. The reader should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company expressly disclaims any obligation to update or alter its forward-looking statements, whether as a result of new information, future events or otherwise.
Forward-looking statements are inherently uncertain and involve significant known and unknown risks and uncertainties (many of which are beyond the control of the Company) that could cause actual results to differ materially from those discussed in this release.
Such risks and uncertainties include economic, business, competitive and/or regulatory factors affecting the Company's business, as well as uncertainties related to the outcomes of pending or future litigation, legislation, or regulatory actions. Among such risks are: changes in crude oil or natural gas prices, refining, marketing and chemicals margins, or other market conditions affecting the oil and gas industry; higher-than-expected costs of, or delays in, planned development or completion of repair projects, capital projects, acquisitions, or dispositions; operational interruptions, unforeseen technical difficulties and/or changes in technical or operating conditions; general domestic and international economic and political conditions, wars and acts of terrorism or sabotage; the outcome of commercial negotiations; the actions of competitors or regulators; the competitiveness of alternate-energy sources or product substitutes; technological developments; liability resulting from pending or future litigation; significant investment or product changes and/or liability for remedial actions or assessments under existing or future environmental regulations; gains and losses related to the acquisition, disposition or impairment of assets; recapitalizations; access to, or significantly higher costs of, capital; the effects of changes in accounting rules applicable to the Company; and changes in tax, environmental and other laws and regulations applicable to the Company's businesses. Unpredictable or unknown factors not discussed in this release also could have material adverse effects on forward-looking statements.
In accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, the Company has included in its Annual Report on Form 10-K for the year ended December 31, 2008 and in its subsequent Form 10-Q and Form 8-K filings, cautionary language identifying other important factors (though not necessarily all such factors) that could cause future outcomes to differ materially from those set forth in the forward-looking statements. For more information concerning these factors, see the Company's Securities and Exchange Commission filings, available on the Company's website at www.SunocoInc.com.
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Sunoco, Inc. 2009 Third Quarter and Nine-Month Financial Summary (Unaudited) Third Quarter 2009 2008* Revenues $8,695,000,000 $15,152,000,000 Net Income (Loss) $(286,000,000 ) $576,000,000 Less: Net Income Attributable to 26,000,000 27,000,000 Noncontrolling (Minority) Interests Net Income (Loss) Attributable to Sunoco, $(312,000,000 ) $549,000,000 Inc. Shareholders Net Income (Loss) Attributable to Sunoco, Inc. Shareholders Per Share of Common Stock: Basic $(2.67 ) $4.70 Diluted $(2.67 ) ** $4.70 Weighted-Average Number of Shares Outstanding (In Millions): Basic 116.9 116.9 Diluted 116.9 ** 116.9 Nine Months Revenues $22,339,000,000 $42,435,000,000 Net Income (Loss) $(256,000,000 ) $646,000,000 Less: Net Income Attributable to 99,000,000 74,000,000 Noncontrolling (Minority) Interests Net Income (Loss) Attributable to Sunoco, $(355,000,000 ) $572,000,000 Inc. Shareholders Net Income (Loss) Attributable to Sunoco, Inc. Shareholders Per Share of Common Stock: Basic $(3.04 ) $4.89 Diluted $(3.04 ) ** $4.88 Weighted-Average Number of Shares Outstanding (In Millions): Basic 116.9 117.0 Diluted 116.9 ** 117.1
Restated to reflect the adoption of new accounting guidance concerning the accounting and reporting of noncontrolling (minority) interests. Net income * attributable to noncontrolling (minority) interests relates to income from Sunoco Logistics Partners L.P. and SunCoke Energy's Indiana Harbor cokemaking operations. Since the assumed issuance of common stock under stock incentive awards would ** not have been dilutive, the diluted per share amounts are equal to the basic per share amounts.
Sunoco, Inc.
Earnings Profile of Sunoco Businesses (after tax)
(Millions of Dollars, Except Per-Share Amounts)
(Unaudited)
Three Months Ended
September 30 June 30
2009 2008 2009
Refining and Supply:
Continuing operations $ (118 ) $ 398 $ (77 )
Discontinued Tulsa operations -- 26 (6 )
Retail Marketing 49 72 10
Chemicals (1 ) 19 --
Logistics 19 20 26
Coke 35 29 42
Corporate and Other:
Corporate expenses (6 ) 2 (15 )
Net financing expenses and other (12 ) (7 ) (11 )
(34 ) 559 (31 )
Special items (278 ) (10 ) * (24 ) **
Net income (loss) attributable to Sunoco, $ (312 ) $ 549 $ (55 )
Inc. shareholders
Earnings (loss) per share of common stock
(diluted):
Income (loss) attributable to Sunoco, Inc. $ (.29 ) $ 4.78 $ (.27 )
shareholders before special items
Special items (2.38 ) (.08 ) (.20 )
Net income (loss) attributable to Sunoco, $ (2.67 ) $ 4.70 $ (.47 )
Inc. shareholders
* Consists of a provision for asset write-downs attributable to the Tulsa refinery. ** Includes a $20 million net after-tax gain recognized in connection with the divestment of the Tulsa refining operations.
Sunoco, Inc.
Earnings Profile of Sunoco Businesses (after tax)
(Millions of Dollars, Except Per-Share Amounts)
(Unaudited)
Nine Months
Ended
September 30
2009 2008
Refining and Supply:
Continuing operations $ (181 ) $ 302
Discontinued Tulsa operations 3 31
Retail Marketing 65 98
Chemicals (5 ) 40
Logistics 75 56
Coke 102 77
Corporate and Other:
Corporate expenses (32 ) (26 )
Net financing expenses and other (33 ) (17 )
(6 ) 561
Special items* (349 ) 11
Net income (loss) attributable to Sunoco, Inc. shareholders $ (355 ) $ 572
Earnings (loss) per share of common stock (diluted):
Income (loss) attributable to Sunoco, Inc. shareholders $ (.05 ) $ 4.79
before special items
Special items (2.99 ) .09
Net income (loss) attributable to Sunoco, Inc. shareholders $ (3.04 ) $ 4.88
Includes a $20 million net after-tax gain recognized in connection with the divestment of the Tulsa refining operations and a $3 million after-tax * provision for asset write-downs attributable to the Tulsa refinery in the first nine months of 2009 and a $10 million after-tax provision for asset write-downs attributable to the Tulsa refinery in the first nine months of 2008.
Sunoco, Inc.
Financial and Operating Statistics (Unaudited)
For the Three For the Nine
Months Ended Months Ended
September 30 June 30 September 30
2009 2008 2009 2009 2008
REFINING AND SUPPLY *
Income (Millions of Dollars) $ (118 ) $ 398 $ (77 ) $ (181 ) $ 302
Realized Wholesale Margin**
(Per Barrel of Production $ 2.72 $ 14.87 $ 3.65 $ 4.23 $ 8.47
Available for Sale)
Market Benchmark*** (Per $ 5.57 $ 12.58 $ 7.05 $ 6.44 $ 9.64
Barrel)
Crude Inputs as Percent of 74 88 78 76 85
Crude Unit Rated Capacity
Throughputs (Thousand
Barrels Daily):
Crude Oil 613.3 725.5 644.2 628.1 703.8
Other Feedstocks 66.4 89.3 81.7 71.9 83.3
Total Throughputs 679.7 814.8 725.9 700.0 787.1
Products Manufactured
(Thousand Barrels Daily):
Gasoline 346.0 387.3 370.3 355.4 379.9
Middle Distillates 219.3 300.4 229.5 227.4 285.2
Residual Fuel 61.5 58.1 61.9 61.5 55.1
Petrochemicals 25.7 38.5 31.5 27.6 35.7
Other 49.2 62.8 61.8 55.1 63.0
Total Production 701.7 847.1 755.0 727.0 818.9
Less: Production Used as 32.5 38.8 34.8 34.3 37.7
Fuel in Refinery Operations
Total Production Available 669.2 808.3 720.2 692.7 781.2
for Sale
* Excludes amounts attributable to the Tulsa refinery for all periods
presented. The Tulsa refinery was sold to Holly Corporation on June 1, 2009.
Wholesale sales revenue less related cost of crude oil, other feedstocks,
** product purchases and terminalling and transportation divided by production
available for sale.
Represents a weighted-average refinery benchmark margin comprised of a
*** 6-3-2-1 Value-Added Benchmark relating to the Northeast refining operations
(80% weight) and a 4-3-1 Benchmark relating to the Toledo refinery (20%
weight).
Sunoco, Inc.
Financial and Operating Statistics (Unaudited)
For the Three For the Nine
Months Ended Months Ended
September 30 June 30 September 30
RETAIL MARKETING 2009 2008 2009 2009 2008
Income (Millions of Dollars) $49 $72 $10 $65 $98
Retail Margin* (Per Barrel):
Gasoline $5.48 $7.85 $2.94 $3.72 $5.20
Middle Distillates $4.92 $5.94 $5.03 $6.96 $5.95
Sales (Thousand Barrels Daily):
Gasoline 294.9 287.0 300.0 292.4 288.5
Middle Distillates 29.5 37.3 30.4 32.1 37.4
324.4 324.3 330.4 324.5 325.9
Total Retail Gasoline Outlets, End 4,704 4,716 4,708 4,704 4,716
of Period
Gasoline and Diesel Throughput per
Company-Owned or Leased Outlet (M 156 150 153 151 148
Gal/Site/Month)
Convenience Stores:
Total Stores, End of Period 627 706 668 627 706
Merchandise Sales (M$/Store/Month) $104 $90 $92 $91 $84
Merchandise Margin (Company 27 % 27 % 27 % 28 % 27 %
Operated) (% of Sales)
*Retail sales price less related wholesale price and terminalling and
transportation costs per barrel. The retail sales price is the weighted-average
price received through the various branded marketing distribution channels.
CHEMICALS
Income (Loss) (Millions of Dollars) $(1 ) $19 $-- $(5 ) $40
Margin* (Cents per Pound):
All Products** 8.9 12.0 8.7 8.4 10.6
Phenol and Related Products 7.3 10.6 8.2 7.4 9.1
Polypropylene** 10.7 14.0 9.3 9.5 12.5
Sales (Millions of Pounds):
Phenol and Related Products 483 607 427 1,317 1,797
Polypropylene 432 531 492 1,438 1,662
Other 6 14 3 14 57
921 1,152 922 2,769 3,516
*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. These margins exclude favorable lower of
cost or market inventory adjustments totaling $3 million ($2 million after tax)
for the three months ended June 30, 2009 and $20 million ($12 million after tax)
for the nine months ended September 30, 2009.
Sunoco, Inc.
Financial and Operating Statistics (Unaudited)
For the Three For the Nine
Months Ended Months Ended
September 30 June 30 September 30
2009 2008 2009 2009 2008
LOGISTICS
Income (Millions of Dollars) $19 $20 $26 $75 $56
Pipeline and Terminal Throughput
(Thousand Barrels Daily)*:
Unaffiliated Customers 1,378 1,154 1,486 1,456 1,195
Affiliated Customers 1,445 1,623 1,461 1,448 1,582
2,823 2,777 2,947 2,904 2,777
*Excludes joint-venture operations.
COKE
Income (Millions of Dollars) $35 $29 $42 $102 $77
Coke Production (Thousands of Tons):
United States* 715 693 694 2,090 1,920
Brazil 321 408 282 883 1,200
*Includes amounts attributable to a second 550 thousand tons-per-year cokemaking
facility at SunCoke Energy's Haverhill site which commenced operations in July
2008.
DEPRECIATION, DEPLETION AND
AMORTIZATION* (Millions of Dollars)
Refining and Supply $64 $63 $84 ** $213 ** $186
Retail Marketing 21 28 25 71 80
Chemicals 17 17 16 49 50
Logistics 13 10 12 36 35
Coke 9 7 7 24 18
$124 $125 $144 $393 $369
* Excludes amounts attributable to the Tulsa refinery for all periods presented.
The Tulsa refinery was sold to Holly Corporation on June 1, 2009 and, as a
result, has been classified as a discontinued operation in the Company's
consolidated statements of operations.
** Includes $19 million attributable to the write-off of certain assets at the
Marcus Hook refinery as a result of a fire at this facility in May 2009.
CAPITAL PROGRAM (Millions of
Dollars)
Refining and Supply:
Continuing Operations $120 $141 $96 $323 $472
Discontinued Tulsa Operations -- 6 1 3 20
Retail Marketing 20 30 20 48 73
Chemicals 8 11 7 23 32
Logistics 88 * 37 37 158 * 88
Coke 50 106 69 188 207
$286 $331 $230 $743 $892
*Includes acquisition of crude oil pipeline and refined product terminaling
assets totaling $50 million.
Sunoco, Inc.
Earnings Profile of Sunoco Businesses (after tax)
(Millions of Dollars, Except Per-Share Amounts)
(Unaudited)
2008
1st 2nd 3rd 4th Total
Refining and Supply :
Continuing operations $(123 ) $ 27 $398 $146 $448
Discontinued Tulsa operations -- 5 26 36 67
Retail Marketing 26 -- 72 103 201
Chemicals 18 3 19 (4 ) 36
Logistics 15 21 20 29 85
Coke 25 23 29 28 105
Corporate and Other:
Corporate expenses (17 ) (11 ) 2 (20 ) (46 )
Net financing expenses and other (3 ) (7 ) (7 ) (5 ) (22 )
(59 ) 61 559 313 874
Special Items* -- 21 (10 ) (109 ) (98 )
Net income (loss) attributable to $ (59 ) $ 82 $549 $204 $776
Sunoco, Inc. shareholders
Earnings (loss) per share of common
stock (diluted):
Income (loss) attributable to
Sunoco, Inc. shareholders before $(.50 ) $.52 $4.78 $2.68 $7.46
special items
Special items -- .18 (.08 ) (.94 ) (.83 )
Net income (loss) attributable to $(.50 ) $.70 $4.70 $1.74 $6.63
Sunoco, Inc. shareholders
Includes provisions for asset write-downs attributable to the Tulsa refinery * of $10 and $85 million after tax in the third quarter and fourth quarter of 2008, respectively.
Sunoco, Inc.
Earnings Profile of Sunoco Businesses (after tax)
(Millions of Dollars, Except Per-Share Amounts)
(Unaudited)
2009
1st 2nd 3rd
Refining and Supply:
Continuing operations $14 $(77) $(118)
Discontinued Tulsa operations 9 (6) --
Retail Marketing 6 10 49
Chemicals (4) -- (1)
Logistics 30 26 19
Coke 25 42 35
Corporate and Other:
Corporate expenses (11) (15) (6)
Net financing expenses and other (10) (11) (12)
59 (31) (34)
Special Items* (47) (24) (278)
Net income (loss) attributable to Sunoco, Inc. $ 12 $(55) $(312)
shareholders
Earnings (loss) per share of common stock (diluted):
Income (loss) attributable to Sunoco, Inc. shareholders $ .50 $(.27) $ (.29)
before special items
Special items (.40) (.20) (2.38)
Net income (loss) attributable to Sunoco, Inc. $ .10 $(.47) $(2.67)
shareholders
Includes a $3 million after-tax provision for asset write-downs attributable * to the Tulsa refinery in the first quarter of 2009 and a $20 million net after-tax gain recognized in connection with the divestment of the Tulsa refining operations in the second quarter of 2009.
Sunoco, Inc.
Consolidated Statements of Operations
(Millions of Dollars)
(Unaudited)
2008*
1st 2nd 3rd 4th Total
REVENUES
Sales and other
operating revenue $ 12,087 $ 15,157 $ 15,135 $ 8,604 $ 50,983
(including consumer
excise taxes)
Interest income 9 3 4 1 17
Gain related to
issuance of Sunoco
Logistics Partners -- -- -- 23 23
L.P. limited
partnership units
Other income, net 8 19 13 13 53
12,104 15,179 15,152 8,641 51,076
COSTS AND EXPENSES
Cost of products sold
and operating 11,252 14,077 13,267 7,120 45,716
expenses
Consumer excise taxes 574 621 631 613 2,439
Selling, general and
administrative 172 192 203 238 805
expenses
Depreciation,
depletion and 124 120 125 130 499
amortization
Payroll, property and 41 33 37 33 144
other taxes
Provision for asset
write-downs and other -- (18 ) -- 86 68
matters
Interest cost and 28 28 27 28 111
debt expense
Interest capitalized (9 ) (8 ) (9 ) (13 ) (39 )
12,182 15,045 14,281 8,235 49,743
Income (loss) from
continuing operations (78 ) 134 871 406 1,333
before income tax
expense (benefit)
Income tax expense (40 ) 31 311 114 416
(benefit)
Income (loss) from (38 ) 103 560 292 917
continuing operations
Income (loss) from
discontinued -- 5 16 (49 ) (28 )
operations
Net income (loss) (38 ) 108 576 243 889
Less: Net income
attributable to 21 26 27 39 113
noncontrolling
(minority) interests
Net income (loss)
attributable to $ (59 ) $ 82 $ 549 $ 204 $ 776
Sunoco, Inc.
shareholders
Restated to treat the Tulsa refinery that was sold on June 1, 2009 as a * discontinued operation and to reflect the adoption of new accounting guidance concerning the accounting and reporting of noncontrolling (minority) interests.
Sunoco, Inc.
Consolidated Statements of Operations
(Millions of Dollars)
(Unaudited)
2009
1st* 2nd 3rd
REVENUES
Sales and other operating revenue (including $ 6,128 $ 7,482 $ 8,634
consumer excise taxes)
Interest income 1 3 1
Other income, net 6 24 60
6,135 7,509 8,695
COSTS AND EXPENSES
Cost of products sold and operating expenses 5,078 6,534 7,683
Consumer excise taxes 569 605 630
Selling, general and administrative expenses 187 174 192
Depreciation, depletion and amortization 125 144 124
Payroll, property and other taxes 41 35 34
Provision for asset write-downs and other 73 75 511
matters
Interest cost and debt expense 31 39 37
Interest capitalized (10 ) (12 ) (12 )
6,094 7,594 9,199
Income (loss) from continuing operations before 41 (85 ) (504 )
income tax benefit
Income tax benefit (4 ) (50 ) (218 )
Income (loss) from continuing operations 45 (35 ) (286 )
Income from discontinued operations 6 14 --
Net income (loss) 51 (21 ) (286 )
Less: Net income attributable to noncontrolling 39 34 26
(minority) interests
Net income (loss) attributable to Sunoco, Inc. $ 12 $ (55 ) $ (312 )
shareholders
* Restated to treat the Tulsa refinery that was sold on June 1, 2009 as a discontinued operation.
Sunoco, Inc.
Consolidated Balance Sheets
(Millions of Dollars)
(Unaudited)
At At
September 30 December 31
2009 2008*
ASSETS
Current Assets
Cash and cash equivalents $ 178 $ 240
Accounts and notes receivable, net 1,907 1,636
Inventories 1,012 821
Deferred income taxes 168 138
Total Current Assets 3,265 2,835
Investments and long-term receivables 183 173
Properties, plants and equipment, net 7,603 7,799
Deferred charges and other assets 318 343
Total Assets $ 11,369 $ 11,150
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable and accrued liabilities $ 3,505 $ 3,140
Short-term borrowings 503 310
Current portion of long-term debt 6 148
Taxes payable 113 339
Total Current Liabilities 4,127 3,937
Long-term debt 2,093 1,705
Retirement benefit liabilities 879 836
Deferred income taxes 743 859
Other deferred credits and liabilities 527 533
Equity
Sunoco, Inc. shareholders' equity 2,443 2,842
Noncontrolling (minority) interests 557 438
Total Equity 3,000 3,280
Total Liabilities and Equity $ 11,369 $ 11,150
* Restated to reflect the adoption of new accounting guidance concerning the accounting and reporting of noncontrolling (minority) interests.
Sunoco, Inc.
Consolidated Statements of Cash Flows
(Millions of Dollars)
(Unaudited)
For the Nine Months
Ended September 30
2009 2008*
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $ (256 ) $ 646
Adjustments to reconcile net income (loss) to net cash
provided by (used in) operating activities:
Gain on divestment of discontinued Tulsa operations (34 ) --
Gain on divestment of retail heating oil and propane (44 ) --
distribution business
Provision for asset write-downs and other matters 665 (1 )
Depreciation, depletion and amortization 393 381
Deferred income tax expense (benefit) (214 ) 71
Payments less than expense for retirement plans 16 5
Changes in working capital pertaining to operating (534 ) (388 )
activities
Other 1 24
Net cash provided by (used in) operating activities (7 ) 738
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures (693 ) (892 )
Acquisitions (50 ) --
Proceeds from divestment of Tulsa refinery and related 157 --
inventory
Proceeds from other divestments 164 15
Other (4 ) 36
Net cash used in investing activities (426 ) (841 )
CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds from short-term borrowings 193 --
Net proceeds from issuance of long-term debt 898 121
Repayments of long-term debt (654 ) (115 )
Net proceeds from issuance of Sunoco Logistics Partners 110 --
L.P. limited partnership units
Cash distributions to investors in cokemaking operations (14 ) (26 )
Cash distributions to investors in Sunoco Logistics (55 ) (45 )
Partners L.P.
Cash dividend payments (105 ) (102 )
Purchases of common stock for treasury -- (49 )
Other (2 ) (2 )
Net cash provided by (used in) financing activities 371 (218 )
Net decrease in cash and cash equivalents (62 ) (321 )
Cash and cash equivalents at beginning of period 240 648
Cash and cash equivalents at end of period $ 178 $ 327
* Restated to reflect the adoption of new accounting guidance concerning the accounting and reporting of noncontrolling (minority) interests.
Source: Sunoco, Inc.
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