PHILADELPHIA, Jan. 22 /PRNewswire-FirstCall/ -- Sunoco, Inc. (NYSE: SUN)
today reported net income of $36 million ($.47 per share diluted) for the
fourth quarter of 2003 versus $61 million ($.79 per share diluted) for the
2002 fourth quarter.
(Logo: http://www.newscom.com/cgi-bin/prnh/19981105/PHTH006 )
The fourth quarter 2003 results included a $17 million after-tax charge
related to the pending sale of the Chemical's plasticizers business and a
$9 million after-tax gain from Retail Marketing's sales of service stations in
the Midwest. Included in the fourth quarter 2002 results was a $5 million
after-tax charge associated with asset write-downs. Excluding these special
items, income for the fourth quarter of 2003 amounted to $44 million ($.57 per
share diluted) versus income of $66 million ($.86 per share diluted).
For the full year 2003, Sunoco reported net income of $312 million ($4.03
per share diluted) versus a net loss of $47 million ($.62 per share diluted)
for the prior year. Excluding special items, Sunoco's income for the full year
2003 was $335 million ($4.32 per share diluted) versus a loss of $25 million
($.33 per share diluted) for 2002.
The Company also announced a 2004 capital spending plan of $750 million,
excluding acquisition outlays. Non-acquisition related capital spending
totaled $425 million in 2003.
"Our fourth quarter results, while not as robust as earlier quarters,
finished off a strong year for Sunoco," said John G. Drosdick, Sunoco Chairman
and CEO. "Refining and Supply earned $20 million for the quarter and $261
million for the full year 2003. Operating performance in our refineries, while
limited by significant planned maintenance in the fourth quarter, continued to
be strong. On an annual basis, we increased our total production for the third
consecutive year. Although refining margins declined during the quarter, the
market for 2003 was excellent and the outlook for 2004 remains favorable.
"Our Chemicals and Retail Marketing businesses earned $26 million and
$25 million, respectively, for the quarter, up sharply from the prior-year
period. Results for the full year 2003 were also much improved. Looking ahead,
we expect increased contributions from these businesses. We consider this
portfolio diversity to be a significant strength of the Company.
"Our Coke business earned $11 million in the fourth quarter, essentially
unchanged from the year-ago period. Logistics had a loss of $3 million in the
current quarter as a result of $11 million of after-tax charges for litigation
associated with pipeline spills that occurred in prior years.
"For the full year, excluding special items, we earned $335 million ($4.32
per diluted share). Over the past year, we have added significant new growth
to our Refining and Supply, Retail Marketing and Chemicals businesses. Our
2004 results are expected to benefit significantly from a full-year
contribution from these assets. We also expect to grow our Logistics and Coke
businesses. Logistics assets from the Eagle Point purchase will be offered for
sale to Sunoco Logistics Partners L.P. We have also begun construction of a
$140 million coke plant in Haverhill, Ohio, which we expect to be in
production by March 2005.
"In addition to growing our asset base, we increased our dividend by ten
percent and repurchased 2.9 million shares ($136 million) in the recently
completed quarter. We ended the year with $431 million of cash, a net debt-to-
capital ratio of 40 percent and a stronger balance sheet than a year ago. This
combination of opportunistic asset growth and returning cash to the
shareholders while remaining prudently leveraged is the core of our strategy
to enhance shareholder value."
DETAILS OF FOURTH QUARTER RESULTS
REFINING AND SUPPLY
Refining and Supply earned $20 million in the current quarter versus $48
million in the fourth quarter of 2002. The decline was largely due to lower
production volumes and realized margins in the Northeast refining system.
Higher expenses, including fuel costs and depreciation, also contributed to
the decrease in earnings.
Production decreased in the Northeast due to a planned maintenance
turnaround in November which reduced total production by approximately 5
million barrels. Excluding this scheduled downtime, crude unit throughput
averaged approximately 500,000 barrels per day (99 percent utilization) in the
Northeast. At Sunoco's Toledo refinery, total production averaged over 167,000
barrels per day, a new quarterly record.
RETAIL MARKETING
Retail Marketing earned $25 million in the fourth quarter of 2003 versus
$12 million in the fourth quarter of 2002. The increase in earnings was due
largely to higher retail gasoline margins, which were up three cents per
gallon compared to the prior-year quarter. Partially offsetting the increased
margins were higher expenses, including additional expenses associated with
the sites acquired from Speedway in June 2003.
CHEMICALS
Chemicals earned $26 million in the fourth quarter of 2003 versus
$17 million in the prior-year period. Average realized margins were 8.7 cents
per pound, up over 1 cent per pound versus the prior-year quarter due largely
to higher polypropylene margins. Higher sales volumes, which were up 5 percent
versus the prior-year quarter, also contributed to the increase in earnings.
Partially offsetting this improvement were higher depreciation and fuel
expenses.
LOGISTICS
Sunoco's Logistics segment, which is comprised of Sunoco's 75-percent
interest in Sunoco Logistics Partners L.P. (NYSE: SXL) and certain other
assets and joint venture interests, had a loss of $3 million in the fourth
quarter of 2003 versus $7 million of income in the prior-year period. The
current period results include $11 million of after-tax charges for litigation
associated with two pipeline spills that occurred in prior years.
COKE
The Coke business earned $11 million in the fourth quarter of 2003 versus
$12 million in the fourth quarter of 2002. The decline was primarily due to
lower benefits from tax credits, partially offset by higher coal and coke
margins.
CORPORATE AND OTHER
Corporate administrative expenses were $11 million after tax in the
current quarter versus $5 million in the comparable quarter last year. The
increase was largely due to higher employee-related expenses, including
pension and performance-related incentive compensation.
Net financing expenses were $24 million after tax in the fourth quarter of
2003 versus $25 million in the prior-year quarter.
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. The service station
sales generated proceeds of $46 million in the fourth quarter. Net income for
the fourth quarter of 2002 included a $5 million after-tax charge related to
asset write-downs associated with the shutdown of a pipeline in Syracuse, NY
and a related refined products terminal and a 140 million pounds-per-year
aniline and diphenylamine (chemicals) production unit in Haverhill, Ohio.
TWELVE MONTH RESULTS
Sunoco had net income of $312 million for the full year 2003 versus a net
loss of $47 million in the comparable 2002 period.
In addition to the fourth quarter special items mentioned above, full year
results for 2003 include a $15 million after-tax charge associated with the
write-down of a joint venture MTBE production facility. Results for the full
year 2002 also included $17 million of after-tax charges for asset write-downs
and charges related to the shutdown of a polypropylene line at the La Porte,
TX plant and certain processing units at the Toledo refinery and a loss
provision related to a lawsuit associated with the Puerto Rico refinery, which
was divested in December 2001. Excluding these special items, Sunoco earned
$335 million for the full year 2003 versus a loss of $25 million in the
comparable 2002 period. The increase in earnings was primarily due to
significantly higher margins in the Refining and Supply, Retail Marketing and
Chemicals business units. Higher refined product sales volumes also
contributed to the improved results. Partially offsetting these increases were
higher expenses across the Company, primarily fuel, utility costs and
employee-related expenses and higher net financing expenses.
CAPITAL SPENDING
Sunoco's 2004 capital program (excluding acquisition capital) of $750
million includes: $297 million for base spending, $103 million for refinery
turnarounds, $175 million for spending associated with meeting clean fuels
gasoline specifications, $112 million towards construction of the Haverhill,
Ohio, coke plant and $63 million for various other income-improvement
projects. These amounts include spending for the recently acquired Eagle Point
refinery.
In addition to normal infrastructure and maintenance capital requirements,
base spending includes several economic return projects to upgrade Sunoco's
existing asset base. These projects include $70 million for new processing
equipment, boilers and reinstrumentation projects at the Company's refineries
and $23 million for additional investments to upgrade Sunoco's existing retail
network and enhance its APlus(R) convenience store presence. Base spending
also includes $11 million to complete conversion of the Speedway sites
acquired in 2003 to Sunoco 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 be in the range of $400-$500 million, including amounts attributable to
the Eagle Point refinery. The Company expects that most of this spending will
occur through 2006. Through year-end 2003, the Company's Tier II spending
totaled $25 million. The Company plans to meet the new gasoline specifications
with new gasoline hydrotreaters at its Marcus Hook, Philadelphia, Toledo and
Eagle Point facilities. Spending in 2004 will include continued engineering
and construction work associated with these efforts.
The income-improvement projects include capital for refinery projects
including expenditures to restart an alkylation unit at the Philadelphia
refinery and for various catalytic cracker upgrades and energy projects. It
also includes capital for new retail units and for production upgrades in
certain chemicals facilities.
Sunoco's 2003 capital spending totaled $425 million. Expenditures included
$284 million for base infrastructure and maintenance, $88 million for refinery
turnarounds, $23 million for spending related to Tier II Clean Fuels, and $30
million for various income-improvement projects. Base infrastructure spending
included $50 million related to construction of a new sulfur plant at Sunoco's
Marcus Hook refinery.
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 4,500 retail sites selling gasoline and
convenience items, interests in almost 11,000 miles of domestic crude oil and
refined product pipelines and 33 product terminals, Sunoco is one of the
largest independent refiner-marketers in the United States. Sunoco has a
strong presence in petrochemicals with approximately six billion pounds of
annual sales, largely chemical intermediates used in the manufacture of
fibers, plastics, film and resins. Utilizing a proprietary technology, Sunoco
also manufactures two million tons annually of high-quality blast furnace 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 22, 2004). 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.
NOTE: In this earnings release, Sunoco has provided income (loss) before
special items in addition to net income (loss) determined in accordance with
generally accepted accounting principles (GAAP). This non-GAAP financial
measure is used by Sunoco management to evaluate financial and operating
performance as the special items are not directly related to operating results
for the period. It also facilitates comparisons to prior-period financial
results and to the results of the Company's competitors. The measure is also
comparable to earnings forecasts made by securities analysts and others, which
generally exclude special items as they are difficult to predict in advance. A
reconciliation of income before special items to GAAP net income is presented
in the Earnings Profile of Sunoco Businesses on pages 9, 10, 17 and 18 in this
release. Special items are not allocated to Sunoco's business segments in its
consolidated financial statements. Income (loss) before special items should
not be considered a substitute for net income (loss).
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;
changes in refining, chemical and other product margins; variation in
petroleum-based commodity prices and availability of crude oil supply or
transportation; fluctuations in supply of feedstocks and demand for products
manufactured; changes in operating conditions and costs; changes in the
expected level of environmental capital, operating or remediation
expenditures; potential equipment malfunction; potential labor relations
problems; the legislative and regulatory environment; plant
construction/repair delays; nonperformance by major customers, suppliers or
other business partners; and political and economic conditions, including the
impact of potential terrorist acts and international hostilities. These and
other applicable risks and uncertainties have been described more fully in
Sunoco's third quarter Form 10-Q filed with the Securities and Exchange
Commission on November 6, 2003 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.
For further information contact
Jerry Davis (media) 215-977-6298
Terry Delaney (investors) 215-977-6106
-- END OF TEXT, CHARTS FOLLOW --
Sunoco, Inc.
2003 Fourth Quarter and Twelve-Month Financial Summary
(Unaudited)
Fourth Quarter 2003 2002
Revenues $4,576,000,000 $4,085,000,000
Net Income $36,000,000 $61,000,000
Net Income Per Share of
Common Stock:
Basic $.47 $.80
Diluted $.47 $.79
Weighted Average Number of Shares
Outstanding (In Millions):
Basic 76.3 76.4
Diluted 77.2 77.0
Twelve Months
Revenues $17,929,000,000 $14,384,000,000
Net Income (Loss) $312,000,000 $(47,000,000)
Net Income (Loss) Per Share of
Common Stock:
Basic $4.07 $(.62)
Diluted $4.03 $(.62)*
Weighted Average Number of Shares
Outstanding (In Millions):
Basic 76.7 76.2
Diluted 77.5 76.2*
* 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)
(Unaudited)
Three Months
Ended
December 31
2003 2002 Variance
Refining and Supply $ 20 $ 48 $(28)
Retail Marketing 25 12 13
Chemicals 26 17 9
Logistics (3) 7 (10)
Coke 11 12 (1)
Corporate and Other:
Corporate expenses (11) (5) (6)
Net financing expenses and other (24) (25) 1
44 66 (22)
Special items (8) (5) (3)
Consolidated net income $ 36 $ 61 $(25)
Earnings (loss) per share of common
stock (diluted):
Income before special items $ .57 $ .86 $(.29)
Special items (.10) (.07) (.03)
Net income $ .47 $ .79 $(.32)
Sunoco, Inc.
Earnings Profile of Sunoco Businesses (after tax)
(Millions of Dollars)
(Unaudited)
Twelve Months
Ended
December 31
2003 2002 Variance
Refining and Supply $261 $(31) $292
Retail Marketing 91 20 71
Chemicals 53 28 25
Logistics 26 33 (7)
Coke 43 42 1
Corporate and Other:
Corporate expenses (40) (26) (14)
Net financing expenses and other (99) (91) (8)
335 (25) 360
Special items (23) (22) (1)
Consolidated net income (loss) $312 $(47) $359
Earnings (loss) per share of common
stock (diluted):
Income (loss) before
special items $4.32 $(.33) $4.65
Special items (.29) (.29) --
Net income (loss) $4.03 $(.62) $4.65
Sunoco, Inc.
Financial and Operating Statistics (Unaudited)
Certain revisions to Sunoco's Financial and Operating Statistics have been
made to the 2002 amounts to conform to the 2003 presentation. The primary
changes provide refinery production volumes (instead of the previously
reported sales volumes) and realized refining margin per barrel on the basis
of production available for sale (instead of the previously reported sales
volumes which included purchase-for-sale activity). More detailed information
concerning refining throughputs has also been provided. Additionally, the
value of internally produced fuel at Sunoco's refineries and chemical plants,
which was previously shown as an operating expense, is now shown as a
reduction to realized margins.
Note: Comparable Financial and Operating Statistics for periods dating
back to 1999 are available at Sunoco's website, http://www.SunocoInc.com, under
"Shareholder and Financial Information -- Financial Reports".
For the Three For the Twelve
Months Ended Months Ended
December 31 December 31
2003 2002 2003 2002
TOTAL REFINING AND SUPPLY
Income (Loss)
(Millions of Dollars) $20 $48 $261 $(31)
Realized Wholesale Margin*
(Per Barrel of Production
Available for Sale) $4.01 $4.24 $4.76 $2.83
Crude Inputs as
Percent of Crude Unit
Rated Capacity 93 95 97 95
Throughputs (Thousand
Barrels Daily):
Crude Oil 678.4 693.4 708.1 689.9
Other Feedstocks 54.0 58.0 53.2 58.4
Total Throughputs 732.4 751.4 761.3 748.3
Products Manufactured
(Thousand
Barrels Daily):
Gasoline 379.4 373.1 375.6 375.2
Middle Distillates 232.6 241.8 236.7 231.2
Residual Fuel 50.5 56.4 59.8 55.9
Petrochemicals 27.2 30.0 27.9 30.5
Lubricants 13.5 10.9 13.6 13.1
Other 59.3 71.1 77.6 73.4
Total Production 762.5 783.3 791.2 779.3
Less: Production Used
as Fuel in
Refinery Operations 34.7 36.3 37.1 37.0
Total Production
Available for
Sale 727.8 747.0 754.1 742.3
* Wholesale sales revenue less cost of crude oil, other feedstocks,
product purchases, internally produced fuel and related terminalling
and transportation divided by production available for sale.
Sunoco, Inc.
Financial and Operating Statistics (Unaudited)
For the Three For the Twelve
Months Ended Months Ended
December 31 December 31
2003 2002 2003 2002
Northeast Refining System
Realized Wholesale
Margin (Per Barrel
of Production Available
for Sale) $3.56 $4.16 $4.63 $2.47
Market Benchmark 6-3-2-1
(Per Barrel) $4.52 $4.22 $5.63 $2.41
Crude Inputs as Percent
of Crude Unit
Rated Capacity 89 94 95 94
Throughputs (Thousand
Barrels Daily):
Crude Oil 447.0 474.6 481.7 476.2
Other Feedstocks 47.9 51.0 46.8 51.2
Total Throughputs 494.9 525.6 528.5 527.4
Products Manufactured
(Thousand
Barrels Daily):
Gasoline 258.1 266.4 261.2 266.9
Middle Distillates 161.2 173.2 169.1 167.4
Residual Fuel 46.2 51.8 55.7 51.9
Petrochemicals 20.6 22.6 20.8 22.8
Other 28.8 34.5 42.1 40.5
Total Production 514.9 548.5 548.9 549.5
Less: Production
Used as Fuel in
Refinery Operations 24.4 25.6 26.3 26.3
Total Production
Available for Sale 490.5 522.9 522.6 523.2
Toledo Refinery
Realized Wholesale
Margin (Per Barrel
of Production Available
for Sale) $4.63 $4.64 $5.29 $3.39
Market Benchmark
4-3-1 (Per Barrel) $4.02 $5.27 $5.95 $4.37
Crude Inputs as
Percent of Crude Unit
Rated Capacity* 108 99 103 96
Throughputs (Thousand
Barrels Daily):
Crude Oil 151.2 138.0 144.1 134.0
Other Feedstocks 6.1 7.0 6.1 6.9
Total Throughputs 157.3 145.0 150.2 140.9
* Effective January 1, 2004, Sunoco's crude oil processing capacity at the
Toledo refinery increased from 140 thousand barrels daily to 150
thousand barrels daily.
Sunoco, Inc.
Financial and Operating Statistics (Unaudited)
For the Three For the Twelve
Months Ended Months Ended
December 31 December 31
Toledo Refinery (Continued) 2003 2002 2003 2002
Products Manufactured
(Thousand Barrels Daily):
Gasoline 102.4 87.9 96.5 87.9
Middle Distillates 41.8 40.1 38.3 36.3
Residual Fuel 4.3 4.6 4.1 4.0
Petrochemicals 6.6 7.4 7.1 7.7
Other 12.3 13.5 13.4 13.5
Total Production 167.4 153.5 159.4 149.4
Less: Production
Used as Fuel in
Refinery Operations 8.4 8.9 8.9 8.7
Total Production
Available for Sale 159.0 144.6 150.5 140.7
Tulsa Refinery
Realized Wholesale Margin
(Per Barrel of Production
Available for Sale) $5.53 $4.03 $4.59 $4.22
Market Benchmark 3-1-2
(Per Barrel) $4.32 $4.63 $5.28 $3.48
Crude Inputs as Percent
of Crude Unit
Rated Capacity 94 95 97 94
Throughputs (Thousand
Barrels Daily):
Crude Oil 80.2 80.8 82.3 79.7
Other Feedstocks -- -- .3 .3
Total Throughputs 80.2 80.8 82.6 80.0
Products Manufactured
(Thousand
Barrels Daily):
Gasoline 18.9 18.8 17.9 20.4
Middle Distillates 29.6 28.5 29.3 27.5
Lubricants 13.5 10.9 13.6 13.1
Other 18.2 23.1 22.1 19.4
Total Production 80.2 81.3 82.9 80.4
Less: Production
Used as Fuel in
Refinery Operations 1.9 1.8 1.9 2.0
Total Production
Available for Sale 78.3 79.5 81.0 78.4
Sunoco, Inc.
Financial and Operating Statistics (Unaudited)
For the Three For the Twelve
Months Ended Months Ended
December 31 December 31
2003 2002 2003 2002
RETAIL MARKETING
Income (Millions
of Dollars) $25 $12 $91 $20
Retail Margin (Per Barrel):
Gasoline $4.71 $3.44 $4.34 $3.14
Middle Distillates $4.42 $4.42 $4.73 $4.14
Sales of Petroleum
Products (Thousand
Barrels Daily):
Gasoline 280.8 265.2 276.5 262.3
Middle Distillates 41.6 40.0 40.3 36.4
322.4 305.2 316.8 298.7
Total Retail Gasoline
Outlets, End of
Period 4,528 4,381 4,528 4,381
Gasoline and diesel
throughput per
Company Owned or
Leased Outlet
(M Gal/Site/Month) 126 124 124 122
Convenience Stores:
Total Stores, End of Period 813 638 813 638
Merchandise Sales
(M$/Store/Month) 72 72 72 69
Merchandise Margin (Company
Operated)(% of Sales) 25% 25% 25% 25%
CHEMICALS
Income (Millions of Dollars) $26 $17 $53 $28
Margin* (Cents per Pound)
- All Products 8.7 7.6 7.9 6.3
Sales (Millions of Pounds):
Phenol and
Related Products 695 737 2,629 2,831
Polypropylene** 423 306 1,562 1,346
Plasticizers 145 155 591 615
Propylene 196 206 774 774
Other 46 36 162 178
1,505 1,440 5,718 5,744
Margin for Key Products*
(Cents per Pound)
Phenol and Related
Products 8.9 8.6 8.2 6.6
Polypropylene** 11.8 10.4 11.0 9.5
* Wholesale sales price less cost of feedstocks, product purchases,
internally produced fuel and related terminalling and transportation
divided by sales volumes. In addition, the margins for polypropylene
exclude 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.
** Excludes Epsilon Products Company, LLC polypropylene joint venture.
Sunoco, Inc.
Financial and Operating Statistics (Unaudited)
For the Three For the Twelve
Months Ended Months Ended
December 31 December 31
2003 2002 2003 2002
COKE
Income (Millions
of Dollars) $11 $12 $43 $42
Coke Production
(Thousands of Tons) 513 514 2,024 2,001
Coke Sales (Thousands
of Tons) 513 618 2,024 2,158
CAPITAL EXPENDITURES (Millions of Dollars)
Refining and Supply $ 82 $ 69 $245 $179
Retail Marketing 45 43 107* 124
Chemicals 11 13 29** 36
Logistics 15 14 39 41
Coke 2 2 5 5
$155 $141 $425 $385
* Excludes $162 million purchase from a subsidiary of Marathon Ashland
Petroleum LLC ("Marathon") of 193 Speedway retail gasoline sites
located primarily in Florida and South Carolina, including related
inventory.
** Excludes $198 million associated with the formation of a propylene
partnership with Equistar Chemicals, L.P. and a related 700 million
pounds-per-year, 15-year propylene supply contract with Sunoco, and the
acquisition of Equistar's Bayport polypropylene facility.
DEPRECIATION, DEPLETION AND
AMORTIZATION (Millions of Dollars)
Refining and Supply $44 $39 $165 $153
Retail Marketing 26 24 99 95
Chemicals 16 12 59 44
Logistics 7 6 27 25
Coke 3 3 13 12
$96 $84 $363 $329
BALANCE SHEET INFORMATION At At
(Millions of Dollars) December 31 December 31
2003 2002
Cash and Cash Equivalents $431 $390
Total Borrowings (including
Current Portion) $1,453 $1,455
Shareholders' Equity $1,556 $1,394
CAPITAL EXPENDITURES
(Millions of Dollars) 2004
Plan 2003 2002
Refining and Supply $425* $245 $179
Retail Marketing 130 107** 124
Chemicals 50* 29*** 36
Logistics 27* 39 41 +
Coke 118 5 5
$750 $425 $385
* Excludes $249 million acquisition from El Paso Corporation of the
Eagle Point refinery and related pipeline and logistics assets,
which
includes $138 million for inventory.
** Excludes the $162 million purchase from Marathon of 193 retail
gasoline sites located primarily in Florida and South Carolina,
which
includes $21 million for inventory.
*** Excludes $198 million associated with the formation of a propylene
partnership with Equistar Chemicals, L.P. and a related supply
contract and the acquisition of Equistar's Bayport polypropylene
facility, which includes $16 million for inventory.
+ Excludes $54 million purchase from an affiliate of Union Oil Company
of California of interests in three Midwestern and Western U.S.
products pipeline companies and a $6 million purchase which
increased
the Company's ownership interest in the West Texas Gulf pipeline.
Sunoco, Inc.
Earnings Profile of Sunoco Businesses (after tax)
(Millions of Dollars)
(Unaudited)
2002
1st 2nd 3rd 4th Total
Refining and Supply $ (76) $ 15 $(18) $ 48 $(31)
Retail Marketing (20) 21 7 12 20
Chemicals 2 (1) 10 17 28
Logistics 8 9 9 7 33
Coke 7 9 14 12 42
Corporate and Other:
Corporate expenses (8) (6) (7) (5) (26)
Net financing
expenses and
other (20) (21) (25) (25) (91)
(107) 26 (10) 66 (25)
Special items -- (17) -- (5) (22)
Consolidated net
income (loss) $(107) $9 $(10) $ 61 $(47)
Earnings (loss)
per share of common
stock (diluted):
Income (loss)
before special
items $(1.41) $ .34 $(.13) $ .86 $(.33)
Special items -- (.22) -- (.07) (.29)
Net income (loss) $(1.41) $ .12 $(.13) $ .79 $(.62)
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.
Consolidated Statements of Operations
(Millions of Dollars)
(Unaudited)
2002
1st 2nd 3rd 4th Total
REVENUES
Sales and other
operating revenue
(including consumer
excise taxes) $2,918 $3,527 $3,789 $4,065 $14,299
Interest income 1 2 2 2 7
Other income 12 27 21 18 78
2,931 3,556 3,812 4,085 14,384
COSTS AND EXPENSES
Cost of products
sold and operating
expenses 2,380 2,780 3,047 3,223 11,430
Consumer excise taxes 428 460 478 468 1,834
Selling, general and
administrative expenses 154 146 166 156 622
Depreciation, depletion
and amortization 79 82 84 84 329
Payroll, property
and other taxes 28 23 25 24 100
Provision for
write-down of assets
and other matters -- 26 -- 8 34
Interest cost and
debt expense 26 28 29 28 111
Interest capitalized -- (1) (1) (1) (3)
3,095 3,544 3,828 3,990 14,457
Income (loss) before
income tax expense
(benefit) (164) 12 (16) 95 (73)
Income tax expense
(benefit) (57) 3 (6) 34 (26)
Net Income (Loss) $ (107) $9 $(10) $61 $(47)
Sunoco, Inc.
Consolidated Statements of Operations
(Millions of Dollars)
(Unaudited)
2003
1st 2nd 3rd 4th Total
REVENUES
Sales and other
operating revenue
(including consumer
excise taxes) $4,560 $4,169 $4,601 $4,536 $17,866
Interest income 3 2 1 3 9
Other income (loss) 7 18 (8) 37 54
4,570 4,189 4,594 4,576 17,929
COSTS AND EXPENSES
Cost of products
sold and
operating expenses 3,701 3,250 3,515 3,621 14,087
Consumer excise taxes 437 490 556 516 1,999
Selling, general
and administrative
expenses 160 178 199 205 742
Depreciation, depletion
and amortization 84 90 93 96 363
Payroll, property
and other taxes 27 24 30 23 104
Provision for
write-down of assets
and other matters -- -- -- 28 28
Interest cost and
debt expense 28 29 28 29 114
Interest capitalized (1) -- (1) (1) (3)
4,436 4,061 4,420 4,517 17,434
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
SOURCE Sunoco, Inc.
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Related links:
http://www.SunocoInc.com
Company News On-Call:
http://www.prnewswire.com/comp/829144.html
Photo Notes:Logo:
NewsCom:
http://www.newscom.com/cgi-bin/prnh/19981105/PHTH006
PRN Photo Desk, photodesk@prnewswire.com
CONTACT:
Media, Jerry Davis, +1-215-977-6298, or
Investors, Terry Delaney, +1-215-977-6106, both of Sunoco, Inc.
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