PHILADELPHIA, Jan. 31 /PRNewswire-FirstCall/ -- Sunoco, Inc. (NYSE:
SUN) today reported net income of $123 million ($1.00 per share diluted)
for the fourth quarter of 2006 versus $287 million ($2.12 per share
diluted) for the fourth quarter of 2005. Excluding special items, income
was $297 million ($2.19 per share diluted) for the fourth quarter of 2005.
There were no special items in the current fourth-quarter period.
(Logo: http://www.newscom.com/cgi-bin/prnh/19981105/PHTH006 )
For the full-year 2006, Sunoco reported net income of $979 million
($7.59 per share diluted) versus $974 million ($7.08 per share diluted) for
the full-year 2005. Excluding special items, Sunoco's income for 2005 was
$1,012 million ($7.36 per share diluted). There were no special items in
the 2006 full-year period.
"2006 was another very strong year for Sunoco," said John G. Drosdick,
Sunoco Chairman and Chief Executive Officer. "Despite significant
volatility in refined product markets and some maintenance downtime in our
Refining system, our earnings per share were the highest in the Company's
history and we generated a return on capital employed in excess of 28
percent.
"We earned $881 million in Refining and Supply and $205 million in our
four non-refining businesses. With the introduction of ethanol-blended
gasoline to much of our Northeast market and the shift to both low-sulfur
gasoline and ultra-low-sulfur diesel fuel across the country, the year was
one of significant transition for the industry. Our entire organization
worked hard to ensure we remained a reliable supplier of quality
transportation fuels in the markets we serve."
Commenting on the fourth quarter, Drosdick said, "Our Refining and
Supply business earned $126 million as seasonal declines in gasoline
margins and an unseasonably warm start to the winter heating oil season
reduced realized refining margins from second and third quarter levels. In
addition, scheduled and unscheduled maintenance activity reduced production
available for sale by about five million barrels during the quarter.
"Retail Marketing had a loss of $11 million in the fourth quarter as
retail gasoline prices declined and squeezed margins significantly versus
record third-quarter levels. The Chemicals business rebounded from the
third quarter to earn $16 million in the fourth quarter as lower average
crude prices led to lower feedstock prices and expanded margins in both our
polypropylene and phenol businesses.
"During the quarter, we continued to execute our ongoing share
reduction program, repurchasing 2.1 million shares at a total cost of $137
million. As of December 31, we had 121.3 million shares outstanding, an
11.8 million reduction (9 percent) from the beginning of the year."
Commenting on 2007, Drosdick said, "Our two main capital projects in
our Refining and Supply business remain on track for completion in the
first half of the year. In February, our Philadelphia refinery will begin a
scheduled two-month turnaround, during which the final tie-in work for our
fluid catalytic cracking unit expansion and residual fuel upgrading project
will be completed. We estimate the work will reduce production in our
Northeast system by approximately eight million barrels in the first
quarter. In addition, we expect to complete the Toledo crude debottleneck
project in the second quarter. Both projects have largely completed
construction and pre-turnaround work.
Drosdick continued, "The Company expects to complete the $40 million
Toledo project at or near the budgeted level, while total capital for the
Philadelphia project is now estimated at $500 million, up $100 million from
prior estimates. The increased costs reflect more current cost estimates
and the impact of some material delivery delays and related productivity
issues. Despite the higher costs, these projects represent valuable
upgrades to our refining system and should provide attractive returns on
our investments. We expect to maintain overall capital spending for
Refining and Supply at approximately $800 million for 2007 by deferring or
eliminating discretionary projects."
DETAILS OF FOURTH QUARTER RESULTS
REFINING AND SUPPLY
Refining and Supply earned $126 million in the fourth quarter of 2006
versus $286 million in the post-hurricane-impacted fourth quarter of 2005.
The decrease was primarily due to lower realized margins and production
across Sunoco's refining system, partially offset by a $16 million
after-tax benefit attributable to LIFO inventory profits. In the Northeast,
margins declined $2.95 per barrel, primarily attributable to wholesale
gasoline. In the MidContinent, a $.93 per barrel decline due to much lower
margins for diesel fuel was only partially offset by higher petrochemical
and lubricants margins.
Total crude unit throughput averaged 813.7 thousand barrels daily (90
percent utilization) for the current quarter, with total production
available for sale approximating 81 million barrels. A combination of
accelerated turnaround work and opportunistic maintenance in our Northeast
system early in the quarter was the main reason for the decline in crude
throughputs versus last year's fourth quarter. In addition, a power
interruption from the local utility resulted in lost production at the
Toledo refinery in December.
RETAIL MARKETING
Retail Marketing had a loss of $11 million in the fourth quarter of
2006 versus income of $25 million in the fourth quarter of 2005. The
decrease was primarily due to much lower retail gasoline margins and a $6
million after-tax charge related to an environmental litigation claim.
Monthly gasoline and diesel throughput per company owned or leased outlet
was up 14 percent from the fourth quarter of 2005.
CHEMICALS
Chemicals earned $16 million in the fourth quarter of 2006 versus $8
million in the prior-year period. The increase in earnings was due
primarily to higher sales volumes and lower operating expenses and
purchased fuel costs, partially offset by lower margins.
LOGISTICS
Earnings for the Logistics segment were $11 million in the fourth
quarter of 2006 versus $3 million in the prior-year period. The improvement
is primarily related to higher earnings from Sunoco Logistics Partners L.P.
(NYSE: SXL) and the absence of $4 million of after-tax charges recorded in
the fourth quarter of 2005 for environmental remediation activities, asset
impairments and insurance settlements.
COKE
The Coke business earned $17 million in the fourth quarter of 2006
versus $10 million in the fourth quarter of 2005. The increase was
primarily due to tax credits, including a $3 million investment tax credit
adjustment relating to the Haverhill facility. As a result of lower crude
oil prices, the current quarter results included a $2 million favorable
adjustment to the partial phase-out of tax credits accrued earlier in 2006.
For the full year, Sun Coke recorded only 65 percent of the benefit of the
tax credits that otherwise would have been available without regard to the
phase-out associated with high crude oil prices, reducing income by $8
million.
CORPORATE AND OTHER
Corporate administrative expenses were $20 million after tax in the
current quarter versus $27 million in the comparable quarter last year. The
decrease was largely due to lower accruals for stock-related incentive
compensation. The current quarter results included after-tax expenses of $3
million related to the corporate portion of charges associated with the
accelerated recognition of share-based incentive compensation for
retirement-eligible employees under SFAS No. 123R.
Net financing expenses and other were $16 million after tax in the
fourth quarter of 2006 versus $8 million in the fourth quarter of 2005 due
primarily to lower interest income, higher long-term debt expenses and a $3
million after-tax loss related to the Company's December 2006 purchase of
the Jewell coke partnership minority interest for $155 million.
SPECIAL ITEM
During the fourth quarter of 2005, Sunoco recognized a $10 million
after-tax loss associated with an arbitration decision related to a phenol
pricing dispute.
TWELVE MONTH RESULTS
Sunoco earned $979 million, or $7.59 per share of common stock on a
diluted basis, for the full-year 2006 versus $974 million, or $7.08 per
share, for the full-year 2005. The increase was primarily due to higher
margins in Sunoco's Refining and Supply and Retail Marketing businesses and
the absence of a loss associated with a phenol supply contract dispute.
Partially offsetting these positive factors were higher expenses, including
fuel charges; lower margins from Sunoco's Chemicals business; and lower
production of refined products.
Sunoco, Inc., headquartered in Philadelphia, PA, is a leading
manufacturer and marketer of petroleum and petrochemical products. With
900,000 barrels per day of refining capacity, nearly 4,700 retail sites
selling gasoline and convenience items, approximately 5,500 miles of crude
oil and refined product owned and operated pipelines and 38 product
terminals, Sunoco is one of the largest independent refiner-marketers in
the United States. Sunoco is a significant manufacturer of petrochemicals
with annual sales of approximately five billion pounds, largely chemical
intermediates used to make fibers, plastics, film and resins. Utilizing a
unique, patented technology, Sunoco also has the capacity to manufacture
over 2.5 million tons annually of high-quality metallurgical-grade coke for
use in the steel industry.
Anyone interested in obtaining further insights into the fourth
quarter's results can monitor the Company's quarterly teleconference call,
which is scheduled for 3:00 p.m. ET on February 1, 2007. 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 materially from those
discussed in the foregoing release. Such risks and uncertainties include,
by way of example and not of limitation: general economic, financial and
business conditions which could affect Sunoco's financial condition and
results of operations; changes in competition and competitive practices,
including the impact of foreign imports; effects of weather conditions and
natural disasters on the Company's operating facilities and on product
supply and demand; changes in refining, marketing and chemical margins;
variation in petroleum-based commodity prices and availability of crude oil
and feedstock supply or transportation; effects of transportation
disruptions; changes in the price differentials between light-sweet and
heavy-sour crude oils; changes in the marketplace which may affect supply
and demand for Sunoco's products; changes in the level of capital or
operating expenses; changes in product specifications; availability and
pricing of ethanol; changes in the expected level of environmental capital,
operating or remediation expenditures; age of, and changes in, the
reliability, efficiency and capacity of, the Company's operating facilities
or those of third parties; effects of adverse events relating to the
operation of the Company's facilities and to the transportation and storage
of hazardous materials (including equipment malfunction, explosions, fires,
spills, and the effects of severe weather conditions); risks related to
labor relations and workplace safety; changes in applicable statutes and
government regulations or their interpretations, including those relating
to the environment and global warming; changes in tax laws or their
interpretations, including pension funding requirements; ability to
identify acquisitions, execute them under favorable terms and integrate
them into the Company's existing businesses; ability to enter into joint
ventures and other similar arrangements under favorable terms; delays
and/or costs related to construction, improvements and/or repairs of
facilities (including shortages of skilled labor, the issuance of
applicable permits and inflation); nonperformance or force majeure by, or
disputes with, major customers, suppliers, dealers, distributors or other
business partners; changes in financial markets impacting pension expense
and funding requirements; political and economic conditions in the markets
in which the Company, its suppliers or customers operate, including the
impact of potential terrorist acts and international hostilities; military
conflicts between, or internal instability in, one or more oil producing
countries, governmental actions and other disruptions in the ability to
obtain crude oil; and changes in the status of, or initiation of new,
litigation, arbitration or other proceedings to which the Company is a
party or liability resulting from such litigation, arbitration or other
proceedings, including natural resource damage claims. These and other
applicable risks and uncertainties have been described more fully in
Sunoco's Third Quarter 2006 Form 10-Q filed with the Securities and
Exchange Commission on November 2, 2006 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.
2006 Fourth Quarter and Twelve-Month Financial Summary
(Unaudited)
Fourth Quarter 2006 2005
Revenues $9,036,000,000 $9,270,000,000
Net Income $123,000,000 $287,000,000
Net Income Per Share of Common Stock*:
Basic $1.01 $2.13
Diluted $1.00 $2.12
Weighted-Average Number of Shares
Outstanding* (In Millions):
Basic 122.2 134.6
Diluted 122.7 135.6
Twelve Months
Revenues $38,715,000,000 $33,764,000,000
Net Income $979,000,000 $974,000,000
Net Income Per Share of Common Stock*:
Basic $7.63 $7.13
Diluted $7.59 $7.08
Weighted-Average Number of Shares
Outstanding* (In Millions):
Basic 128.3 136.6
Diluted 129.0 137.5
* Share and per-share data presented for all periods reflect the effect
of a two-for-one stock split, which was effected in the form of a
common stock dividend distributed on August 1, 2005.
Sunoco, Inc.
Earnings Profile of Sunoco Businesses (after tax)
(Millions of Dollars, Except Per-Share Amounts)
(Unaudited)
Three Months Ended
December 31
2006 2005 Variance
Refining and Supply $126 $286 $(160)
Retail Marketing (11) 25 (36)
Chemicals 16 8 8
Logistics 11 3 8
Coke 17 10 7
Corporate and Other:
Corporate expenses (20) (27) 7
Net financing expenses and other (16) (8) (8)
123 297 (174)
Special items -- (10) 10
Consolidated net income $123 $287 $(164)
Earnings (loss) per share
of common stock (diluted):
Income before special items $1.00 $2.19 $(1.19)
Special items -- (.07) .07
Net income $1.00 $2.12 $(1.12)
Sunoco, Inc.
Earnings Profile of Sunoco Businesses (after tax)
(Millions of Dollars, Except Per-Share Amounts)
(Unaudited)
Twelve Months Ended
December 31
2006 2005 Variance
Refining and Supply $881 $947 $(66)
Retail Marketing 76 30 46
Chemicals 43 94 (51)
Logistics 36 22 14
Coke 50 48 2
Corporate and Other:
Corporate expenses (58) (84) 26
Net financing expenses and other (49) (45) (4)
979 1,012 (33)
Special items -- (38) 38
Consolidated net income $979 $ 974 $5
Earnings (loss) per share of
common stock (diluted):
Income before special items $7.59 $7.36 $.23
Special items -- (.28) .28
Net income $7.59 $7.08 $.51
Sunoco, Inc.
Financial and Operating Statistics (Unaudited)
For the Three For the Twelve
Months Ended Months Ended
December 31 December 31
2006 2005 2006 2005
TOTAL REFINING AND SUPPLY
Income (Millions of Dollars) $126 $286 $881 $947
Realized Wholesale Margin*
(Per Barrel of Production
Available for Sale) $7.51 $9.96 $9.09 $8.65
Crude Inputs as Percent of
Crude Unit Rated Capacity 90 99 93 98
Throughputs (Thousand
Barrels Daily):
Crude Oil 813.7 892.6 840.6 881.0
Other Feedstocks 78.4 64.8 72.8 59.4
Total Throughputs 892.1 957.4 913.4 940.4
Products Manufactured
(Thousand Barrels Daily):
Gasoline 420.5 459.7 436.2 443.4
Middle Distillates 306.5 330.7 305.5 319.5
Residual Fuel 77.0 74.9 74.0 76.2
Petrochemicals 36.3 35.8 35.6 36.8
Lubricants 10.6 13.8 13.2 13.2
Other 73.4 78.7 82.2 86.6
Total Production 924.3 993.6 946.7 975.7
Less: Production Used as Fuel
in Refinery Operations 41.8 50.3 43.9 48.6
Total Production Available
for Sale 882.5 943.3 902.8 927.1
* Wholesale sales revenue less related cost of crude oil, other
feedstocks, product purchases and 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
2006 2005 2006 2005
Northeast Refining*
Realized Wholesale Margin
(Per Barrel of Production
Available for Sale) $6.23 $9.18 $7.92 $8.35
Market Benchmark 6-3-2-1
(Per Barrel) $3.68 $9.23 $5.55 $7.76
Crude Inputs as Percent
of Crude Unit Rated
Capacity 92 101 94 99
Throughputs (Thousand
Barrels Daily):
Crude Oil 602.6 658.9 616.1 650.6
Other Feedstocks 69.3 57.3 64.2 52.8
Total Throughputs 671.9 716.2 680.3 703.4
Products Manufactured
(Thousand Barrels Daily):
Gasoline 313.7 348.4 323.5 330.5
Middle Distillates 234.3 249.0 230.2 242.1
Residual Fuel 72.6 70.1 69.8 71.7
Petrochemicals 28.0 28.2 28.3 28.6
Other 44.6 46.9 51.2 55.8
Total Production 693.2 742.6 703.0 728.7
Less: Production Used as Fuel
in Refinery Operations 31.6 37.9 32.8 36.7
Total Production Available
for Sale 661.6 704.7 670.2 692.0
* Comprised of the Marcus Hook, Philadelphia and Eagle Point refineries.
MidContinent Refining*
Realized Wholesale Margin
(Per Barrel of Production
Available for Sale) $11.32 $12.25 $12.46 $9.54
Market Benchmark 3-2-1
(Per Barrel) $8.58 $11.95 $12.31 $11.04
Crude Inputs as Percent of
Crude Unit Rated Capacity 86 95 92 94
Throughputs (Thousand
Barrels Daily):
Crude Oil 211.1 233.7 224.5 230.4
Other Feedstocks 9.1 7.5 8.6 6.6
Total Throughputs 220.2 241.2 233.1 237.0
* Comprised of the Toledo and Tulsa refineries.
Sunoco, Inc.
Financial and Operating Statistics (Unaudited)
For the Three For the Twelve
Months Ended Months Ended
December 31 December 31
2006 2005 2006 2005
MidContinent Refining (continued)
Products Manufactured
(Thousand Barrels Daily):
Gasoline 106.8 111.3 112.7 112.9
Middle Distillates 72.2 81.7 75.3 77.4
Residual Fuel 4.4 4.8 4.2 4.5
Petrochemicals 8.3 7.6 7.3 8.2
Lubricants 10.6 13.8 13.2 13.2
Other 28.8 31.8 31.0 30.8
Total Production 231.1 251.0 243.7 247.0
Less: Production Used as Fuel
in Refinery Operations 10.2 12.4 11.1 11.9
Total Production
Available for Sale 220.9 238.6 232.6 235.1
RETAIL MARKETING
Income (Loss) (Millions
of Dollars) $(11) $25 $76 $30
Retail Margin* (Per Barrel):
Gasoline $2.85 $4.60 $4.16 $3.39
Middle Distillates $5.66 $5.66 $4.69 $4.49
Sales of Petroleum Products
(Thousand Barrels Daily):
Gasoline 305.0 288.4 303.2 298.3
Middle Distillates 42.9 46.9 42.9 45.3
347.9 335.3 346.1 343.6
Total Retail Gasoline Outlets,
End of Period 4,691 4,763 4,691 4,763
Gasoline and Diesel Throughput
per Company Owned or Leased
Outlet (M Gal/Site/Month) 149 131 144 136
Convenience Stores:
Total Stores, End of Period 739 746 739 746
Merchandise Sales
(M$/Store/Month) $80 $76 $80 $78
Merchandise Margin (Company
Operated) (% of Sales) 28% 28% 27% 28%
* 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
2006* 2005 2006* 2005
CHEMICALS
Income (Millions of Dollars) $16 $8 ** $43 $94 **
Margin*** (Cents per Pound):
All Products# 10.5 11.4 9.9 12.1
Phenol and Related Products 8.7 9.3 8.0 10.9
Polypropylene# 12.9 14.3 12.4 13.9
Sales (Millions of Pounds):
Phenol and Related Products 632 619 2,535 2,579
Polypropylene 562 512 2,243 2,218
Other 25 22 88 91
1,219 1,153 4,866 4,888
* The income and margin data reflect a new pricing formula for 2006
sales of phenol to Honeywell International Inc. based upon the
outcome of arbitration decisions in 2005 and 2006.
** Excludes a $10 million after-tax loss recognized in the fourth
quarter of 2005 and a $56 million after-tax loss recognized in the
full-year 2005 associated with the phenol supply contract dispute.
*** Wholesale sales revenue less cost of feedstocks, product purchases
and related terminalling and transportation divided by sales
volumes.
# The polypropylene and all products margins include the impact of a
long-term supply contract with Equistar Chemicals, L.P. which is
priced on a cost-based formula that includes a fixed discount.
LOGISTICS
Income (Millions of Dollars) $11 $3 $36 $22
Pipeline and Terminal Throughput
(Thousand Barrels Daily)*:
Unaffiliated Customers 1,040 911 1,033 838
Affiliated Customers 1,623 1,707 1,644 1,663
2,663 2,618 2,677 2,501
* Excludes joint-venture operations.
COKE*
Income (Millions of Dollars) $17 $10 $50 $48
Coke Production (Thousands of Tons) 632 634 2,510 2,405
Coke Sales (Thousands of Tons) 637 610 2,534 2,375
* Includes amounts attributable to the Haverhill facility, which
commenced operations in March 2005.
Sunoco, Inc.
Financial and Operating Statistics (Unaudited)
For the Three For the Twelve
Months Ended Months Ended
December 31 December 31
2006 2005 2006 2005
CAPITAL EXPENDITURES
(Millions of Dollars)
Refining and Supply $236 $177 $712 $687
Retail Marketing 48 45 112 117
Chemicals 21 19 62 * 55
Logistics 34 43 *** 119 ** 79 ***#
Coke 5 ## 4 14 ## 32
$344 $288 $1,019 $970
* Excludes a $14 million purchase price adjustment to the 2001
Aristech Chemical Corporation acquisition attributable to an earn-
out payment made in April 2006. The earn out, which relates to 2005,
was due to realized margins for phenol exceeding certain agreed-upon
threshold amounts.
** Excludes the acquisition of two separate crude oil pipeline systems
and related storage facilities located in Texas, one from Alon USA
Energy, Inc. for $68 million and the other from Black Hills Energy,
Inc. for $41 million.
*** Excludes $5 million acquisition from Chevron of an ownership
interest in the Mesa Pipeline.
# Excludes $100 million acquisition from ExxonMobil of a crude oil
pipeline system and related storage facilities located in Texas.
## Excludes $155 million acquisition of the minority interest in the
Jewell cokemaking operation.
DEPRECIATION, DEPLETION AND
AMORTIZATION (Millions
of Dollars)
Refining and Supply $55 $54 $225 $201
Retail Marketing 29 26 104 105
Chemicals 19 18 74 71
Logistics 10 11 38 36
Coke 5 4 18 16
$118 $113 $459 $429
Sunoco, Inc.
Earnings Profile of Sunoco Businesses (after tax)
(Millions of Dollars, Except Per-Share Amounts)
(Unaudited)
2005
1st 2nd 3rd 4th Total
Refining and Supply $108 $212 $341 $286 $947
Retail Marketing (8) 7 6 25 30
Chemicals 33 30 23 8 94
Logistics 3 9 7 3 22
Coke 10 13 15 10 48
Corporate and Other:
Corporate expenses (16) (16) (25) (27) (84)
Net financing expenses and
other (14) (13) (10) (8) (45)
116 242 357 297 1,012
Special items -- -- (28) (10) (38)
Consolidated net income $116 $242 $329 $287 $974
Earnings (loss) per share
of common stock (diluted):
Income before special
items $.83 $1.75 $2.60 $2.19 $7.36
Special items -- -- (.21) (.07) (.28)
Net income $.83 $1.75 $2.39 $2.12 $7.08
Sunoco, Inc.
Earnings Profile of Sunoco Businesses (after tax)
(Millions of Dollars, Except Per-Share Amounts)
(Unaudited)
2006
1st 2nd 3rd 4th Total
Refining and Supply $73 $409 $273 $126 $881
Retail Marketing -- 10 77 (11) 76
Chemicals 14 8 5 16 43
Logistics 6 12 7 11 36
Coke 14 10 9 17 50
Corporate and Other:
Corporate expenses (16) (11) (11) (20) (58)
Net financing expenses
and other (12) (12) (9) (16) (49)
79 426 351 123 979
Special items -- -- -- -- --
Consolidated net income $79 $426 $351 $123 $979
Earnings per share of common
stock (diluted):
Income before special
items $.59 $3.22 $2.76 $1.00 $7.59
Special items -- -- -- -- --
Net income $.59 $3.22 $2.76 $1.00 $7.59
Sunoco, Inc.
Consolidated Statements of Income
(Millions of Dollars)
(Unaudited)
2005
1st 2nd 3rd 4th Total
REVENUES
Sales and other operating
revenue (including
consumer excise taxes) $7,191 $7,970 $9,345 $9,248 $33,754
Interest income 3 3 6 11 23
Other income (loss), net 15 17 (56) 11 (13)
7,209 7,990 9,295 9,270 33,764
COSTS AND EXPENSES
Cost of products sold and
operating expenses 6,059 6,581 7,702 7,686 28,028
Consumer excise taxes 585 640 675 688 2,588
Selling, general and
administrative expenses 209 225 242 270 946
Depreciation, depletion and
amortization 105 102 109 113 429
Payroll, property and
other taxes 36 28 33 27 124
Interest cost and debt
expense 23 23 25 23 94
Interest capitalized (6) (6) (8) (5) (25)
7,011 7,593 8,778 8,802 32,184
Income before income tax
expense 198 397 517 468 1,580
Income tax expense 82 155 188 181 606
Net income $116 $242 $329 $287 $974
Sunoco, Inc.
Consolidated Statements of Income
(Millions of Dollars)
(Unaudited)
2006
1st 2nd 3rd 4th Total
REVENUES
Sales and other
operating revenue
(including consumer
excise taxes) $8,569 $10,575 $10,480 $9,012 $38,636
Interest income 10 8 11 5 34
Other income, net 14 7 5 19 45
8,593 10,590 10,496 9,036 38,715
COSTS AND EXPENSES
Cost of products
sold and
operating expenses 7,454 8,858 8,867 7,768 32,947
Consumer excise
taxes 628 663 679 664 2,634
Selling, general
and administrative
expenses 210 210 215 246 881
Depreciation,
depletion and
amortization 112 114 115 118 459
Payroll, property and
other taxes 34 31 33 27 125
Interest cost and debt
expense 26 27 25 27 105
Interest capitalized (1) (4) (5) (6) (16)
8,463 9,899 9,929 8,844 37,135
Income before income
tax expense 130 691 567 192 1,580
Income tax expense 51 265 216 69 601
Net income $79 $426 $351 $123 $979
Sunoco, Inc.
Consolidated Balance Sheets
(Millions of Dollars)
(Unaudited)
At At
December 31 December 31
2006 2005
ASSETS
Current Assets
Cash and cash equivalents $263 $919
Accounts and notes
receivable, net 2,440 1,754
Inventories 1,219 799
Deferred income taxes 93 215
Total Current Assets 4,015 3,687
Investments and
long-term receivables 129 143
Properties, plants and
equipment, net 6,365 5,658
Deferred charges and
other assets 473 443
Total Assets $10,982 $9,931
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts payable and
accrued liabilities $ 4,174 $3,656
Short-term borrowings 275 --
Current portion of long-term debt 7 177
Taxes payable 299 338
Total Current Liabilities 4,755 4,171
Long-term debt 1,705 1,234
Retirement benefit liabilities 523 525
Deferred income taxes 829 817
Other deferred credits
and liabilities 477 486
Minority interests 618 647
Shareholders' equity 2,075 2,051
Total Liabilities and
Shareholders' Equity $10,982 $9,931
Sunoco, Inc.
Consolidated Statements of Cash Flows
(Millions of Dollars)
(Unaudited)
For the Twelve Months
Ended December 31
2006 2005
INCREASES (DECREASES) IN CASH
AND CASH EQUIVALENTS
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $979 $974
Adjustments to reconcile
net income to net cash
provided by operating activities:
Phenol supply contract
dispute loss (payment) (95) 95
Proceeds from power
contract restructuring -- 48
Depreciation, depletion
and amortization 459 429
Deferred income tax expense 117 3
Payments in excess of expense
for retirement plans (32) (39)
Changes in working capital
pertaining to operating
activities, net of effect
of acquisitions (470) 494
Other 26 65
Net cash provided by operating activities 984 2,069
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures (1,019) (970)
Acquisitions (123) (105)
Proceeds from divestments 50 55
Other 3 (15)
Net cash used in investing activities (1,089) (1,035)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds from (repayments of)
short-term borrowings 275 (100)
Net proceeds from issuance
of long-term debt 778 99
Repayments of long-term debt (481) (70)
Net proceeds from issuance
of Sunoco Logistics Partners L.P.
limited partnership units 110 160
Purchase of minority interest
in Jewell cokemaking operations (155) --
Cash distributions to investors
in cokemaking operations (43) (38)
Cash distributions to investors
in Sunoco Logistics Partners L.P. (48) (28)
Cash dividend payments (123) (103)
Purchases of common stock for treasury (871) (435)
Proceeds from issuance of common
stock under management incentive plans 7 14
Other -- (19)
Net cash used in financing activities (551) (520)
Net increase (decrease) in cash
and cash equivalents (656) 514
Cash and cash equivalents at
beginning of period 919 405
Cash and cash equivalents at end of period $263 $919
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
http://www.prnewswire.com/comp/829144.html/
CONTACT:
Jerry Davis (media), +1-215-977-6298, or Tom
Harr (investors), +1-215-977-6764, both of Sunoco
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