PHILADELPHIA, Jan. 20 /PRNewswire-FirstCall/ -- Sunoco, Inc. (NYSE: SUN)
today reported net income of $188 million ($2.62 per share diluted) for the
fourth quarter of 2004 versus $36 million ($.47 per share diluted) for the
2003 fourth quarter. Excluding special items, income for the 2003 fourth
quarter was $44 million ($.57 per share diluted). There were no special items
in the current quarter.
(Logo: http://www.newscom.com/cgi-bin/prnh/19981105/PHTH006 )
For the full year 2004, Sunoco reported net income of $615 million ($8.21
per share diluted) versus net income of $312 million ($4.03 per share diluted)
for the prior year. Excluding special items, Sunoco's income for the full year
2004 was $639 million ($8.53 per share diluted) versus $335 million ($4.32 per
share diluted) for 2003.
"Our fourth-quarter results were excellent and completed an outstanding
year for Sunoco," said John G. Drosdick, Sunoco Chairman and Chief Executive
Officer. "We achieved record earnings in 2004 and significantly strengthened
our asset portfolio while reducing outstanding shares by 8 percent during the
year."
Commenting on fourth-quarter results, Drosdick said, "Refining margins and
results continued to be exceptional, and with some moderation of crude oil
prices, Retail Marketing and Chemicals results also improved and contributed
strongly in the quarter.
"Refining and Supply earned $135 million in the quarter. Quarterly
production was again near capacity levels, despite some cutbacks in the
Northeast Refining system caused by a third-party oil spill in the Delaware
River in late November. In our Northeast system, we also increased our use of
heavy-sweet and high-acid crude oils to approximately five percent of crude
runs during the quarter. With discounts to light-sweet crude oils of over $10
per barrel, this contributed substantially to lower crude oil purchase costs
and higher net margin realizations for the quarter. We expect to increase the
use of these crude oils to approximately 10 percent for the first quarter of
2005.
"Chemicals earned a record $40 million for the quarter. Despite continued
high feedstock costs, Chemicals results have improved year-on-year for seven
consecutive quarters, and over the second-half of 2004 earned $70 million.
Product demand growth remains healthy and we expect this cyclical recovery to
continue.
"Retail Marketing results were also much improved, with earnings of $30
million for the quarter. Retail gasoline margins increased as crude oil and
wholesale gasoline prices declined during the quarter. With the strong finish
to the year, this business earned $68 million in 2004, a good result given the
challenging retail marketing conditions during most of the year. Coke and
Logistics earned $10 million and $5 million, respectively, in the quarter.
"During the quarter, we also continued our share repurchase activity,
repurchasing almost 4.3 million shares ($332 million). For the year, we
repurchased approximately 8 million shares ($568 million) and reduced total
shares outstanding to 69.3 million. We have remaining share repurchase
authorization of $227 million and continue to consider this to be an important
element of our strategy to increase shareholder value.
"For the full year, excluding special items, earnings were $639 million
($8.53 per diluted share). Both Refining and Supply and Chemicals generated
record earnings and, while subject to some demand variables, underlying market
fundamentals continue to be favorable. Retail Marketing earnings in 2005
should benefit from a full-year contribution from the retail sites acquired
from ConocoPhillips in April 2004 and from improvements associated with
initiatives within our company-operated store network.
"We expect to continue to grow our Logistics and Coke businesses. In 2004,
Sunoco Logistics Partners L.P. (NYSE: SXL) unit value increased 17 percent and
annual cash distributions increased by $0.40 per unit (20%). Acquisition and
expansion capital for the year totaled $65 million and a successful equity
offering was completed in April 2004. In Coke, we are on schedule to begin
production at a new 550,000 ton cokemaking plant in Haverhill, Ohio in March
2005 and construction is underway for a joint-venture plant in Vitoria, Brazil
that is expected to be operational in 2006. Prospects for continued growth in
both businesses remain excellent.
"While growing the asset base and repurchasing a significant amount of
shares in 2004, we were also able to strengthen our balance sheet during the
year. We ended the year with a net debt-to-capital ratio, as defined in our
revolving credit agreement, of 37 percent (versus 42 percent at year-end 2003)
and reduced anticipated 2005 annual pretax interest expense by approximately
$20 million through debt restructuring activities completed in 2004. This
strong financial position provides us the flexibility and capacity to continue
to prudently pursue our strategies to increase shareholder value in the
future."
DETAILS OF FOURTH QUARTER RESULTS
REFINING AND SUPPLY
Refining and Supply earned $135 million in the current quarter versus $20
million in the fourth quarter of 2003. The increase was largely due to higher
realized margins, increased production volumes, and a $40 million income
contribution from the Eagle Point facility acquired in January 2004. Partially
offsetting these results were higher expenses, including fuel, depreciation
and employee-related charges.
Realized margins averaged $6.42 per barrel for the quarter and were
particularly strong for distillate products. Total crude unit throughput
averaged 883.6 thousand barrels daily (99 percent utilization) for the
quarter, with total production available for sale approximating 85 million
barrels. Distillate production was a record 29.5 million barrels during the
quarter. The prior-year quarter included planned maintenance activity in the
Northeast.
Production in the Northeast Refining system was reduced by approximately
one million barrels during the quarter due to delays in crude oil deliveries
caused by the third-party oil spill on the Delaware River. Including crude
demurrage and other costs, the loss to Sunoco associated with this incident is
estimated to be approximately $15-$20 million pretax. The Company is pursuing
claims for recovery in this matter but the ultimate outcome of the claims is
uncertain at this time.
RETAIL MARKETING
Retail Marketing earned $30 million in the fourth quarter of 2004 versus
$25 million in the fourth quarter of 2003. The increase in earnings was due to
a $6 million income contribution from the retail sites acquired from
ConocoPhillips in April 2004. Gasoline margins across the retail portfolio
averaged 11.9 cents per gallon for the quarter.
CHEMICALS
Chemicals earned $40 million in the fourth quarter of 2004 versus $26
million in the prior-year period. Average margins were 13.7 cents per pound,
up 3.3 cents per pound versus the prior-year quarter and 2.3 cents per pound
versus the third quarter of 2004. Margins for both phenol and polypropylene
products improved during the quarter due to increased sales prices throughout
the product channels. Lower sales volumes and higher fuel expenses partially
offset the margin improvement.
LOGISTICS
Earnings for the Logistics segment were $5 million for the current quarter
versus a loss of $3 million in the prior-year period. The fourth quarter of
2003 included an $11 million after-tax charge for litigation associated with
two pipeline spills that occurred in prior years. Excluding that charge,
earnings declined versus the year-ago quarter primarily due to Sunoco's
reduced ownership interest in Sunoco Logistics Partners L.P.
COKE
The Coke business earned $10 million in the fourth quarter of 2004 versus
$11 million in the fourth quarter of 2003.
CORPORATE AND OTHER
Corporate administrative expenses were $17 million after tax in the
current quarter versus $11 million in the comparable quarter last year. The
increase was largely due to higher employee-related expenses, including
accruals associated with cash and stock-based compensation. Also contributing
to the increase were higher audit fees and costs associated with implementing
provisions of the Sarbanes-Oxley Act of 2002.
Net financing expenses were $15 million after tax in the fourth quarter of
2004 versus $24 million in the prior-year quarter. The decline was primarily
due to lower interest expense on long-term debt largely related to the 2004
debt restructuring activities and increased capitalized interest.
SPECIAL ITEMS
Net income for the fourth quarter of 2003 included a $17 million after-tax
charge for the write-down of the plasticizer business and a $9 million after-
tax gain from the sale of service stations in the Midwest.
TWELVE MONTH RESULTS
Sunoco had net income of $615 million for the full year 2004 versus $312
million in 2003. Full year results for 2004 include: a $34 million after-tax
loss from the early extinguishment of debt; an $8 million after-tax loss
recognized in connection with the sale of the Company's one-third interest in
the Belvieu Environmental Fuels ("BEF") MTBE joint venture; and an $18 million
gain due to an income tax settlement. Results for the full year 2003 included:
the $17 million after-tax charge for the write-down of the plasticizer
business; the $9 million after-tax gain from the sale of service stations in
the Midwest; and a $15 million after-tax charge associated with the write-down
of the BEF joint venture.
Excluding these special items, Sunoco earned $639 million for the full
year 2004 versus $335 million in 2003. The increase is primarily due to
significantly higher wholesale fuel margins, higher chemical margins, higher
production of refined products, lower net financing expenses and added income
from acquisitions, including the Eagle Point refinery, Speedway and
ConocoPhillips retail gasoline sites and the 2003 propylene supply agreement
with Equistar Chemicals, L.P. The increase was partially offset by lower
retail gasoline margins, higher expenses and a higher effective income tax
rate.
CAPITAL SPENDING
Sunoco's 2005 capital program of $846 million includes: $383 million for
base spending; $45 million for refinery turnarounds; $294 million for spending
associated with meeting clean fuels gasoline specifications; $17 million to
complete construction of the Haverhill, Ohio coke plant; and $107 million for
various other income improvement projects.
In addition to normal infrastructure and maintenance capital requirements,
the $383 million for base spending includes several projects to upgrade
Sunoco's existing asset base. These projects include: $19 million to complete
the expansion of the sulfur recovery unit at the Eagle Point refinery; $36
million for new processing equipment, boilers, and reinstrumentation projects
at the Company's refineries; and $67 million to upgrade Sunoco's retail
network, enhance its APlus(R) convenience store presence, and complete the
conversion of acquired sites to Sunoco(R) branded outlets.
With respect to clean fuels spending, the Company estimates that total
capital outlays to comply with the Tier II gasoline and diesel specifications
will approximate $550 million. Through year-end 2004, the Company's Tier II
spending totaled $233 million. The Company expects that most of this spending
will be completed by the end of 2006.
The $107 million for income-improvement projects for 2005 includes capital
for refinery projects, including expenditures to increase hydrotreater
capacity at the Toledo refinery, to restart an alkylation unit at the
Philadelphia refinery and to upgrade various catalytic cracker units. Planned
spending also includes capital for production upgrades in certain chemical
facilities.
Excluding $431 million for acquisitions, Sunoco's 2004 capital spending
totaled $832 million. Expenditures included $298 million for base
infrastructure and maintenance, $122 million for refinery turnarounds, $208
million for Tier II Clean Fuels, $128 million towards construction of the
Haverhill, Ohio coke plant and $76 million for various income-improvement
projects.
Sunoco, Inc., headquartered in Philadelphia, PA, is a leading manufacturer
and marketer of petroleum and petrochemical products. With 890,000 barrels per
day of refining capacity, over 4,800 retail sites selling gasoline and
convenience items, over 4,500 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 also manufactures
approximately two million tons annually of high-quality metallurgical-grade
coke for use in the steel industry.
Anyone interested in obtaining further insights into this quarter's
results can monitor the Company's quarterly teleconference call, which is
scheduled for 3:00 p.m. ET today (January 20, 2005). It can be accessed
through Sunoco's Web site - http://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 from those discussed in the foregoing release. Such
risks and uncertainties include, by way of example and not of limitation:
general business and economic conditions; competitive products and pricing;
effects of weather conditions and natural disasters on product supply and
demand; changes in refining, chemical and other product margins; variation in
petroleum-based commodity prices and availability of crude oil supply or
transportation; effects of transportation disruptions; changes in the price
differentials between light-sweet and heavy-sour crude oils; fluctuations in
supply of feedstocks and demand for products manufactured; changes in product
specifications; availability and pricing of oxygenates; phase-outs or
restrictions on the use of MTBE; changes in operating conditions and costs;
changes in the expected level of environmental capital, operating or
remediation expenditures; age of, and changes in, the reliability and
efficiency of the Company's or a third party's operating facilities; potential
equipment malfunction; potential labor relations problems; the legislative and
regulatory environment; ability to identify acquisitions under favorable terms
and integrate them into the Company's existing businesses; ability to enter
into joint ventures and other arrangements with favorable terms; plant
construction/repair delays; nonperformance by major customers, suppliers or
other business partners; changes in financial markets impacting pension
expense and funding requirements; political and economic conditions, including
the impact of potential terrorist acts and international hostilities; and
changes in the status of, or initiation of new, litigation. These and other
applicable risks and uncertainties have been described more fully in Sunoco's
Third Quarter 2004 Form 10-Q filed with the Securities and Exchange Commission
on November 4, 2004 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.
Sunoco, Inc.
2004 Fourth Quarter and Twelve-Month Financial Summary
(Unaudited)
Fourth Quarter 2004 2003
Revenues $7,429,000,000 $4,596,000,000 *
Net Income $188,000,000 $36,000,000
Net Income Per Share of
Common Stock:
Basic $2.64 $.47
Diluted $2.62 $.47
Weighted Average Number of Shares
Outstanding (In Millions):
Basic 71.2 76.3
Diluted 71.8 77.2
Twelve Months
Revenues $25,508,000,000 $18,016,000,000 *
Net Income $615,000,000 $312,000,000
Net Income Per Share of
Common Stock:
Basic $8.30 $4.07
Diluted $8.21 $4.03
Weighted Average Number of Shares
Outstanding (In Millions):
Basic 74.1 76.7
Diluted 74.9 77.5
* Restated to reflect the consolidation of the Epsilon Products
Company, LLC polypropylene joint venture, effective January 1, 2003,
in connection with the adoption of FASB Interpretation No. 46,
"Consolidation of Variable Interest Entities," in the first quarter
of 2004.
Sunoco, Inc.
Earnings Profile of Sunoco Businesses (after tax)
(Millions of Dollars)
(Unaudited)
Three Months Ended
December 31
2004 2003 Variance
Refining and Supply $135 $ 20 $115
Retail Marketing 30 25 5
Chemicals 40 26 14
Logistics 5 (3) 8
Coke 10 11 (1)
Corporate and Other:
Corporate expenses (17) (11) (6)
Net financing
expenses and other (15) (24) 9
188 44 144
Special items -- (8) 8
Consolidated net income $188 $ 36 $152
Earnings (loss) per share
of common stock (diluted):
Income before special items $2.62 $ .57 $2.05
Special items -- (.10) .10
Net income $2.62 $ .47 $2.15
Sunoco, Inc.
Earnings Profile of Sunoco Businesses (after tax)
(Millions of Dollars)
(Unaudited)
Twelve Months Ended
December 31
2004 2003 Variance
Refining and Supply $541 $261 $280
Retail Marketing 68 91 (23)
Chemicals 94 53 41
Logistics 31 26 5
Coke 40 43 (3)
Corporate and Other:
Corporate expenses (57) (40) (17)
Net financing expenses
and other (78) (99) 21
639 335 304
Special items (24) (23) (1)
Consolidated net income $615 $312 $303
Earnings (loss) per share
of common stock (diluted):
Income before special items $8.53 $4.32 $4.21
Special items (.32) (.29) (.03)
Net income $8.21 $4.03 $4.18
Sunoco, Inc.
Financial and Operating Statistics (Unaudited)
Commencing in the first quarter of 2004, certain revisions have been made
to Sunoco's Financial and Operating Statistics presented below. In Refining
and Supply, operating data is now provided for MidContinent Refining
(previously, separate data had been provided for the Toledo and Tulsa
refineries). Also, the Chemicals margin and volume data as well as certain
other financial information reflect the impact of consolidating the Epsilon
Products Company, LLC polypropylene joint venture in connection with the
adoption of FASB Interpretation No. 46. The polypropylene margin information
also now includes the impact of a long-term supply contract entered into on
March 31, 2003 with Equistar Chemicals, L.P. and the cost of additives. Prior-
period amounts have been restated to conform to the 2004 presentation.
For the Three For the Twelve
Months Ended Months Ended
December 31 December 31
2004 2003 2004 2003
TOTAL REFINING AND SUPPLY
Income (Millions of
Dollars) $135 $20 $541 $261
Realized Wholesale
Margin* (Per Barrel of
Production Available
for Sale) $6.42 $4.01 $6.30 $4.76
Crude Inputs as Percent
of Crude Unit Rated
Capacity** 99 93 97 97
Throughputs*** (Thousand
Barrels Daily):
Crude Oil 883.6 678.4 855.7 708.1
Other Feedstocks 55.2 54.0 58.8 53.2
Total Throughputs 938.8 732.4 914.5 761.3
Products Manufactured***
(Thousand Barrels Daily):
Gasoline 447.9 379.4 442.0 375.6
Middle Distillates 320.9 232.6 300.3 236.7
Residual Fuel 73.6 50.5 73.0 59.8
Petrochemicals 40.9 27.2 38.1 27.9
Lubricants 12.3 13.5 13.6 13.6
Other 78.7 59.3 82.0 77.6
Total Production 974.3 762.5 949.0 791.2
Less: Production Used
as Fuel in Refinery
Operations 46.0 34.7 46.2 37.1
Total Production
Available
for Sale 928.3 727.8 902.8 754.1
* Wholesale sales revenue less related cost of crude oil, other
feedstocks, product purchases and terminalling and transportation
divided by production available for sale.
** In January 2004, crude unit capacity increased from 730 to 890
thousands of barrels daily. This change reflects the acquisition of
the 150 thousand barrels-per-day Eagle Point refinery effective
January 13, 2004 and a 10 thousand barrels-per-day adjustment at the
Toledo refinery reflecting the increased reliability and enhanced
operations at this facility in recent years. The calculation of the
crude inputs as a percent of crude unit rated capacity for the
twelve months ended December 31, 2004 includes the Eagle Point
refinery, effective January 13, 2004.
*** Data pertaining to the Eagle Point refinery for the twelve months
ended December 31, 2004 are included based on the amounts
attributable to the 354-day ownership period (January 13, 2004 -
December 31, 2004) divided by 366 days.
Sunoco, Inc.
Financial and Operating Statistics (Unaudited)
For the Three For the Twelve
Months Ended Months Ended
December 31 December 31
2004 2003 2004 2003
Northeast Refining*
Realized Wholesale Margin
(Per Barrel of Production
Available for Sale) $7.08 $3.56 $6.36 $4.63
Market Benchmark
6-3-2-1 (Per Barrel) $6.21 $4.52 $6.40 $5.63
Crude Inputs as
Percent of Crude
Unit Rated
Capacity** 99 89 97 95
Throughputs***
(Thousand Barrels Daily):
Crude Oil 645.5 447.0 633.3 481.7
Other Feedstocks 49.2 47.9 52.9 46.8
Total Throughputs 694.7 494.9 686.2 528.5
Products Manufactured***
(Thousand Barrels Daily):
Gasoline 331.5 258.1 327.8 261.2
Middle Distillates 242.0 161.2 231.5 169.1
Residual Fuel 69.7 46.2 69.2 55.7
Petrochemicals 32.2 20.6 31.0 20.8
Other 45.0 28.8 51.7 42.1
Total Production 720.4 514.9 711.2 548.9
Less: Production Used
as Fuel in Refinery
Operations 34.7 24.4 35.6 26.3
Total Production
Available for
Sale 685.7 490.5 675.6 522.6
* Comprised of the Marcus Hook, Philadelphia and Eagle Point
refineries.
** On January 13, 2004, crude unit capacity increased from 505 to 655
thousands of barrels daily as a result of the Eagle Point refinery
acquisition. The calculation of the crude inputs as a percent of
crude unit rated capacity for the twelve months ended December 31,
2004 includes the Eagle Point refinery, effective January 13, 2004.
*** Data pertaining to the Eagle Point refinery for the twelve months
ended December 31, 2004 are included based on the amounts
attributable to the 354-day period subsequent to the acquisition
date divided by 366 days.
MidContinent Refining*
Realized Wholesale Margin
(Per Barrel of Production
Available for Sale) $4.53 $4.93 $6.12 $5.05
Market Benchmark
3-2-1 (Per Barrel) $4.52 $3.89 $7.04 $5.80
Crude Inputs as Percent
of Crude Unit Rated
Capacity** 101 103 95 101
Throughputs (Thousand
Barrels Daily):
Crude Oil 238.1 231.4 222.4 226.4
Other Feedstocks 6.0 6.1 5.9 6.4
Total Throughputs 244.1 237.5 228.3 232.8
* Comprised of the Toledo and Tulsa refineries.
** Effective January 1, 2004, crude unit capacity increased from 225 to
235 thousands of barrels daily as a result of a 10 thousand barrels-
per-day adjustment at the Toledo refinery.
Sunoco, Inc.
Financial and Operating Statistics (Unaudited)
For the Three For the Twelve
Months Ended Months Ended
December 31 December 31
2004 2003 2004 2003
MidContinent Refining (continued)
Products Manufactured
(Thousand Barrels Daily):
Gasoline 116.4 121.3 114.2 114.4
Middle Distillates 78.9 71.4 68.8 67.6
Residual Fuel 3.9 4.3 3.8 4.1
Petrochemicals 8.7 6.6 7.1 7.1
Lubricants 12.3 13.5 13.6 13.6
Other 33.7 30.5 30.3 35.5
Total Production 253.9 247.6 237.8 242.3
Less: Production Used
as Fuel in Refinery
Operations 11.3 10.3 10.6 10.8
Total Production
Available for
Sale 242.6 237.3 227.2 231.5
RETAIL MARKETING
Income (Millions
of Dollars) $30 $25 $68 $91
Retail Margin*
(Per Barrel):
Gasoline $4.99 $4.71 $4.13 $4.34
Middle Distillates $4.71 $4.42 $4.40 $4.73
Sales of Petroleum
Products (Thousand
Barrels Daily):
Gasoline 296.0 280.8 296.3 276.5
Middle Distillates 45.9 41.6 42.7 40.3
341.9 322.4 339.0 316.8
Total Retail Gasoline
Outlets, End of Period 4,804 4,528 4,804 4,528
Gasoline and Diesel
Throughput per Company
Owned or Leased Outlet
(M Gal/Site/Month) 136 126 133 124
Convenience Stores:
Total Stores,
End of Period 757 813 757 813
Merchandise Sales
(M$/Store/Month) 72 72 73 72
Merchandise Margin
(Company Operated)
(% of Sales) 27% 25% 26% 25%
* 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.
Sunoco, Inc.
Financial and Operating Statistics (Unaudited)
For the Three For the Twelve
Months Ended Months Ended
December 31 December 31
2004 2003 2004 2003
CHEMICALS*
Income (Millions of
Dollars) $40 $26 $94 $53
Margin** (Cents
per Pound):
All Products*** 13.7 10.4 11.0 9.5
Phenol and Related
Products 12.5 8.9 9.7 8.2
Polypropylene*** 16.2 13.0 13.4 11.5
Sales (Millions of Pounds):
Phenol and Related
Products 669 695 2,615 2,629
Polypropylene# 556 588 2,239 2,248
Plasticizers## -- 145 28 591
Other 48 50 187 173
1,273 1,478 5,069 5,641
* Prior-period amounts have been restated to reflect the consolidation
of the Epsilon joint venture, effective January 1, 2003, in
connection with the adoption of FASB Interpretation No. 46 in the
first quarter of 2004.
** 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 entered into on March 31, 2003 with
Equistar Chemicals, L.P. which is priced on a cost-based formula
that includes a fixed discount.
# Includes amounts attributable to the Bayport facility subsequent to
its purchase, effective March 31, 2003.
## The plasticizer business was divested in January 2004.
COKE
Income (Millions
of Dollars) $10 $11 $40 $43
Coke Production
(Thousands of Tons) 486 513 1,965 2,024
Coke Sales (Thousands
of Tons) 471 513 1,953 2,024
Sunoco, Inc.
Financial and Operating Statistics (Unaudited)
For the Three For the Twelve
December 31 December 31
Months Ended Months Ended
2004 2003 2004 2003
CAPITAL EXPENDITURES (Millions of Dollars)
Refining and Supply $160 $ 82 $463 * $245
Retail Marketing 39 45 103 ** 107 ***
Chemicals 27 12 56 * 31 #
Logistics 31 15 75 * 39
Coke 47 2 135 5
$304 $156 $832 $427
* Excludes $250 million acquisition from El Paso Corporation ("El
Paso") of the Eagle Point refinery and related chemical and
logistics assets, which includes inventory. The purchase price is
comprised of $190, $40 and $20 million attributable to Refining and
Supply, Chemicals and Logistics, respectively.
** Excludes $181 million acquisition from ConocoPhillips of 340 retail
outlets located primarily in Delaware, Maryland, Virginia and
Washington, D.C., which includes inventory.
*** Excludes $162 million purchase from a subsidiary of Marathon Ashland
Petroleum LLC ("Marathon") of 193 retail gasoline sites located
primarily in Florida and South Carolina, which includes inventory.
# Excludes $198 million associated with the formation of a propylene
partnership with Equistar Chemicals, L.P. ("Equistar") and a related
supply contract and the acquisition of Equistar's Bayport
polypropylene facility, which includes inventory.
DEPRECIATION, DEPLETION AND
AMORTIZATION (Millions of Dollars)
Refining and Supply $49 $44 $188 $165
Retail Marketing 25 26 106 99
Chemicals 19 18 70 65
Logistics 10 7 32 27
Coke 3 3 13 13
$106 $98 $409 $369
BALANCE SHEET INFORMATION
(Millions of Dollars) At At
December 31 December 31
2004 2003
Cash and Cash
Equivalents $405 $431
Total Borrowings
(including Current Portion)* $1,482 $1,601
Shareholders' Equity $1,617 $1,556
* At December 31, 2004 and December 31, 2003, includes $126 and $148
million, respectively, attributable to the Epsilon joint venture,
which is now consolidated in connection with the adoption of FASB
Interpretation No. 46.
CAPITAL EXPENDITURES
(Millions of Dollars)
2005 2004 2003
Plan
Refining and Supply $587 $463 * $245
Retail Marketing 130 103 ** 107 ***
Chemicals 74 56 * 31 #
Logistics 30 75 * 39
Coke 25 135 5
$846 $832 $427
* Excludes $250 million acquisition from El Paso of the Eagle Point
refinery and related chemical and logistics assets, which includes
inventory. The purchase price is comprised of $190, $40 and $20
million attributable to Refining and Supply, Chemicals and
Logistics, respectively.
** Excludes $181 million acquisition from ConocoPhillips of 340 retail
gasoline sites located primarily in Delaware, Maryland, Virginia and
Washington, D.C., which includes inventory.
*** Excludes $162 million purchase from Marathon of 193 retail gasoline
sites located primarily in Florida and South Carolina, which
includes inventory.
# Excludes $198 million associated with the formation of a propylene
partnership with Equistar and a related supply contract and the
acquisition of Equistar's Bayport polypropylene facility, which
includes inventory.
Sunoco, Inc.
Earnings Profile of Sunoco Businesses (after tax)
(Millions of Dollars)
(Unaudited)
2003
1st 2nd 3rd 4th Total
Refining and Supply $ 93 $ 50 $ 98 $ 20 $261
Retail Marketing 10 36 20 25 91
Chemicals (4) 10 21 26 53
Logistics 11 9 9 (3) 26
Coke 10 11 11 11 43
Corporate and Other:
Corporate expenses (9) (10) (10) (11) (40)
Net financing
expenses and other (25) (25) (25) (24) (99)
86 81 124 44 335
Special items -- -- (15) (8) (23)
Consolidated net income $ 86 $ 81 $109 $ 36 $312
Earnings (loss) per
share of common stock
(diluted):
Income before
special items $1.12 $1.04 $1.59 $ .57 $4.32
Special items -- -- (.19) (.10) (.29)
Net income $1.12 $1.04 $1.40 $ .47 $4.03
Sunoco, Inc.
Earnings Profile of Sunoco Businesses (after tax)
(Millions of Dollars)
(Unaudited)
2004
1st 2nd 3rd 4th Total
Refining and Supply $100 $217 $ 89 $135 $541
Retail Marketing (4) 20 22 30 68
Chemicals 12 12 30 40 94
Logistics 8 9 9 5 31
Coke 9 9 12 10 40
Corporate and Other:
Corporate expenses (12) (13) (15) (17) (57)
Net financing
expenses and other (24) (20) (19) (15) (78)
89 234 128 188 639
Special items -- -- (24) -- (24)
Consolidated
net income $ 89 $234 $104 $188 $615
Earnings (loss) per
share of common stock
(diluted):
Income before
special items $1.17 $3.07 $1.71 $2.62 $8.53
Special items -- -- (.32) -- (.32)
Net income $1.17 $3.07 $1.39 $2.62 $8.21
Sunoco, Inc.
Consolidated Statements of Income
(Millions of Dollars)
(Unaudited)
2003*
1st 2nd 3rd 4th Total
REVENUES
Sales and other
operating revenue
(including consumer
excise taxes) $4,589 $4,189 $4,630 $4,561 $17,969
Interest income 2 2 1 2 7
Other income
(loss), net 5 13 (11) 33 40
4,596 4,204 4,620 4,596 18,016
COSTS AND EXPENSES
Cost of products
sold and operating
expenses 3,722 3,261 3,536 3,635 14,154
Consumer excise
taxes 437 490 556 516 1,999
Selling, general
and administrative
expenses 163 180 202 207 752
Depreciation,
depletion and
amortization 85 92 94 98 369
Payroll, property
and other taxes 27 24 30 24 105
Provision for
write-down of
assets and other
matters -- -- -- 28 28
Interest cost
and debt expense 29 29 29 30 117
Interest
capitalized (1) -- (1) (1) (3)
4,462 4,076 4,446 4,537 17,521
Income before
income tax
expense 134 128 174 59 495
Income tax
expense 48 47 65 23 183
Net income $86 $81 $109 $36 $312
* Restated to reflect the consolidation of the Epsilon joint venture,
effective January 1, 2003, in connection with the adoption of FASB
Interpretation No. 46 in the first quarter of 2004.
Sunoco, Inc.
Consolidated Statements of Income
(Millions of Dollars)
(Unaudited)
2004
1st 2nd 3rd 4th Total
REVENUES
Sales and other operating
revenue (including
consumer excise
taxes) $5,232 $6,265 $6,575 $7,396 $25,468
Interest income 2 1 4 3 10
Other income
(loss), net 11 10 (21) 30 30
5,245 6,276 6,558 7,429 25,508
COSTS AND EXPENSES
Cost of products
sold and operating
expenses 4,254 4,949 5,417 6,114 20,734
Consumer excise
taxes 498 571 611 602 2,282
Selling, general
and administrative
expenses 187 223 203 244 857
Depreciation,
depletion and
amortization 100 100 103 106 409
Payroll, property
and other taxes 33 28 30 27 118
Interest cost
and debt
expense 29 28 28 23 108
Interest
capitalized (1) (2) (3) (5) (11)
5,100 5,897 6,389 7,111 24,497
Income before
income tax
expense 145 379 169 318 1,011
Income tax
expense 56 145 65 130 396
Net income $89 $234 $104 $188 $615
SOURCE Sunoco, Inc.
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Related links:
http://www.SunocoInc.com
Photo Notes:
NewsCom:
http://www.newscom.com/cgi-bin/prnh/19981105/PHTH006
PRN Photo Desk, photodesk@prnewswire.com
Company News On-Call:
http://www.prnewswire.com/comp/829144.html
CONTACT:
Jerry Davis (media), +1-215-977-6298, or
Terry Delaney (investors), +1-215-977-6106, both of Sunoco
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