PHILADELPHIA, Feb. 1 /PRNewswire-FirstCall/ -- Sunoco, Inc. (NYSE: SUN)
today reported net income of $287 million ($2.12 per share diluted) for the
fourth quarter of 2005 versus $178 million ($1.24 per share diluted) for the
2004 fourth quarter. Excluding a special item, income for the current quarter
was $297 million ($2.19 per share diluted). There were no special items in the
2004 fourth quarter.
(Logo: http://www.newscom.com/cgi-bin/prnh/19981105/PHTH006 )
For the full year 2005, Sunoco reported net income of $974 million ($7.08
per share diluted) versus net income of $605 million ($4.04 per share diluted)
for the full year 2004. Excluding special items, Sunoco's income was $1,012
million ($7.36 per share diluted) versus $629 million ($4.20 per share
diluted) for the comparable 2004 period.
All per-share amounts reflect the two-for-one stock split
effected on August 1, 2005.
"Strong fourth-quarter results completed an outstanding year for Sunoco,"
said John G. Drosdick, Sunoco Chairman and Chief Executive Officer. "In a very
strong refining environment, we achieved best-ever operating and safety
performance in 2005. We had record operating earnings of over $1 billion and a
return on capital employed of over 32 percent. We increased our dividend by 33
percent, reduced our shares outstanding by four percent and significantly
strengthened our balance sheet. Our share price increased 92 percent for the
year."
Commenting on the fourth-quarter results, Drosdick said, "Refining and
Supply results continued to lead the way, with earnings of $286 million in the
quarter. Refining conditions were strong throughout most of the quarter,
although margins did moderate some as refineries impacted by Hurricanes
Katrina and Rita returned to operations over the quarter. Operationally, we
had our best quarter ever, with crude unit utilization at 99 percent and
overall system (UEDC) utilization rates of almost 91 percent.
"Retail Marketing earned $25 million, its best quarter of 2005, as retail
gasoline margins benefited from crude oil and wholesale gasoline prices that
were on a declining trend over much of the quarter. Chemicals earnings,
however, declined to $8 million as year-end sales volumes fell off and high
natural gas costs negatively impacted the business. While early 2006 demand is
showing some recovery, feedstock volatility and high energy costs continue.
"In our other businesses, Logistics and Coke earned $3 million and $10
million, respectively. Logistics results for the current quarter included
charges of approximately $4 million after tax related to asset write-offs and
insurance and environmental remediation accruals. Results for the quarter also
included $8 million in unusual after-tax charges to Corporate expenses and a
$10 million after-tax charge across the businesses for increased performance
bonus payouts related to enhancements to a non-executive bonus plan.
"During the quarter, we continued our share repurchase activity,
repurchasing approximately 3.6 million shares ($269 million). For the year,
over 6.7 million shares ($435 million) were repurchased. Over the past five
years, we have reduced our shares outstanding by 22 percent."
Drosdick concluded, "Despite some recent downward pressure on refining
margins caused by the unseasonably warm weather in the Northeast, we believe
the longer term market fundamentals are still very good for our refining
business. In addition, we enter 2006 with a strong balance sheet, with a net
debt-to-capital ratio (as defined in our revolving credit agreement) of 17
percent -- down from 37 percent at year-end 2004. This financial strength will
serve us well as we execute our capital program to improve and expand our
existing refining base while continuing to consider other opportunities to
grow our asset portfolio and return cash to our shareholders."
DETAILS OF FOURTH QUARTER RESULTS
REFINING AND SUPPLY
Refining and Supply earned $286 million in the current quarter versus $135
million in the fourth quarter of 2004. The increase in earnings was due to
higher realized margins and higher production volumes. The higher realized
margins were, in part, due to continued fourth-quarter impacts from the Gulf
Coast hurricanes. Value-added product margins, particularly for premium
gasoline, jet fuel and low-sulfur diesel fuel were also strong during the
quarter. Partially offsetting these factors were higher expenses, including
fuel and employee-related charges.
Total crude unit throughput averaged 892.6 thousand barrels daily (99
percent utilization) for the quarter, with total production available for sale
approximating 87 million barrels.
RETAIL MARKETING
Retail Marketing earned $25 million in the fourth quarter of 2005 versus
$30 million in the fourth quarter of 2004. The decrease in results was due to
lower gains from asset divestments associated with the Retail Portfolio
Management program. Lower retail gasoline margins (down 1 cpg) and sales
volumes (down 2.6 percent) were essentially offset by lower expenses and
higher margins on distillate products.
CHEMICALS
Chemicals earned $8 million in the fourth quarter of 2005 versus $40
million in the prior-year period. Margins and volumes for both polypropylene
and phenol declined -- with average margins down 2.3 cents per pound and total
sales volumes 9 percent less than the 2004 fourth quarter. Higher expenses, in
part due to natural gas prices which averaged almost $13 per decatherm and
were over $5 per decatherm higher than the prior-year quarter, also
contributed to the decline.
LOGISTICS
Earnings for the Logistics segment were $3 million in the fourth quarter
of 2005 versus $5 million in the prior-year period. Higher income from
terminalling and Western crude oil pipeline operations was more than offset by
Sunoco's reduced ownership interest in Sunoco Logistics Partners L.P.
(NYSE: SXL) and by $4 million of after-tax charges for environmental
remediation activities, asset impairments and insurance assessments.
COKE
The Coke business earned $10 million in both fourth-quarter periods. An
eight-day steam system outage at the Haverhill, OH plant reduced current
quarter results by approximately $2 million.
CORPORATE AND OTHER
Corporate administrative expenses were $27 million after tax in both
fourth-quarter periods. The current quarter results included a $6 million
after-tax charge for the adoption of a new accounting interpretation related
to asset retirement obligations and a $2 million after-tax accrual for
retrospective insurance premiums associated with an energy industry mutual
insurance consortium. The 2004 fourth quarter results included a $10 million
after-tax accrual for retrospective premiums.
Net financing expenses were $8 million after tax in the fourth quarter of
2005 versus $15 million in the prior-year quarter. The decrease was primarily
due to higher interest income.
SPECIAL ITEM
During the fourth quarter of 2005, Sunoco recognized an additional $10
million after-tax loss associated with an arbitration decision related to a
phenol pricing dispute. In the 2005 third quarter, a $46 million after-tax
charge was recorded for estimated damages for the period from June 2003 to
April 2005. In January 2006, the arbitrator further ruled that the revised
pricing formula should apply until a second arbitration, scheduled for the
second quarter of 2006, finalizes pricing for 2005 and beyond. The additional
charge relates to the period May 2005 through December 2005.
TWELVE MONTH RESULTS
Sunoco had net income of $974 million for the full year 2005 versus $605
million for the full year 2004. The increase was primarily due to higher
margins in Sunoco's Refining and Supply business. Also contributing to the
improvement in earnings were higher margins from Sunoco's Chemicals business,
higher production of refined products, increased use of high-acid discounted
crude oils and lower net financing expenses. Partially offsetting these
positive factors were higher expenses, primarily fuel and employee-related
charges, lower margins in Retail Marketing and lower Chemicals sales volumes.
Full-year results for 2005 include an $18 million after-tax net gain
related to income tax matters and the $56 million after-tax loss associated
with the phenol supply contract dispute. The loss covers estimated damages
for the period from June 2003 to December 2005.
Results for the full year 2004 included an $8 million after-tax loss
related to the sale of Sunoco's one-third interest in the BEF MTBE joint
venture chemical operations and a $34 million after-tax loss from the early
extinguishment of outstanding debt. Sunoco also recognized an $18 million
after-tax gain from the 2004 settlement of certain federal income tax issues.
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, approximately 4,800 retail sites selling gasoline
and convenience items, approximately 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 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 2, 2006. 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 business and economic conditions; competitive products and
pricing; 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; 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, efficiency and capacity 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, 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 plant construction, improvements or repairs and the issuance
of applicable permits; nonperformance 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, including the impact of potential terrorist
acts and international hostilities; and changes in the status of, or
initiation of new, litigation and/or arbitration proceedings. These and other
applicable risks and uncertainties have been described more fully in Sunoco's
Form 10-Q filed with the Securities and Exchange Commission on November 3,
2005 and in other periodic reports filed with the Securities and Exchange
Commission. Sunoco undertakes no obligation to update any forward-looking
statements in this release, whether as a result of new information or future
events.
-END OF TEXT, CHARTS FOLLOW-
Sunoco, Inc.
2005 Fourth Quarter and Twelve-Month Financial Summary
(Unaudited)
Fourth Quarter 2005 2004
Revenues $9,270,000,000 $7,429,000,000
Net Income $287,000,000 $178,000,000
Net Income Per Share of Common Stock*:
Basic $2.13 $1.25
Diluted $2.12 $1.24
Weighted-Average Number of Shares
Outstanding* (In Millions):
Basic 134.6 142.5
Diluted 135.6 143.7
Twelve Months
Revenues $33,764,000,000 $25,508,000,000
Net Income $974,000,000 $605,000,000
Net Income Per Share of Common Stock*:
Basic $7.13 $4.08
Diluted $7.08 $4.04
Weighted-Average Number of Shares
Outstanding* (In Millions):
Basic 136.6 148.2
Diluted 137.5 149.8
*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
2005 2004 Variance
Refining and Supply $286 $135 $151
Retail Marketing 25 30 (5)
Chemicals 8 40 (32)
Logistics 3 5 (2)
Coke 10 10 --
Corporate and Other:
Corporate expenses (27) (27) --
Net financing expenses and other (8) (15) 7
297 178 119
Special Items (10) -- (10)
Consolidated net income $287 $178 $109
Earnings (loss) per share of common
stock (diluted):
Income before special items $2.19 $1.24 $.95
Special items (.07) -- (.07)
Net income $2.12 $1.24 $.88
Sunoco, Inc.
Earnings Profile of Sunoco Businesses (after tax)
(Millions of Dollars, Except Per-Share Amounts)
(Unaudited)
Twelve Months
Ended
December 31
2005 2004 Variance
Refining and Supply $947 $541 $406
Retail Marketing 30 68 (38)
Chemicals 94 94 --
Logistics 22 31 (9)
Coke 48 40 8
Corporate and Other:
Corporate expenses (84) (67) (17)
Net financing expenses and other (45) (78) 33
1,012 629 383
Special Items (38) (24) (14)
Consolidated net income $974 $605 $369
Earnings (loss) per share of common
stock (diluted):
Income before special items $7.36 $4.20 $3.16
Special items (.28) (.16) (.12)
Net income $7.08 $4.04 $3.04
Sunoco, Inc.
Financial and Operating Statistics (Unaudited)
For the Three For the Twelve
Months Ended Months Ended
December 31 December 31
2005 2004 2005 2004
TOTAL REFINING AND SUPPLY
Income (Millions of Dollars) $286 $135 $947 $541
Realized Wholesale Margin*
(Per Barrel of Production
Available for Sale) $9.96 $6.42 $8.65 $6.30
Crude Inputs as Percent of Crude
Unit Rated Capacity** 99 99 98 97
Throughputs*** (Thousand Barrels
Daily):
Crude Oil 892.6 883.6 881.0 855.7
Other Feedstocks 64.8 55.2 59.4 58.8
Total Throughputs 957.4 938.8 940.4 914.5
Products Manufactured***
(Thousand Barrels Daily):
Gasoline 459.7 447.9 443.4 442.0
Middle Distillates 330.7 320.9 319.5 300.3
Residual Fuel 74.9 73.6 76.2 73.0
Petrochemicals 35.8 40.9 36.8 38.1
Lubricants 13.8 12.3 13.2 13.6
Other 78.7 78.7 86.6 82.0
Total Production 993.6 974.3 975.7 949.0
Less: Production Used as Fuel
in Refinery Operations 50.3 46.0 48.6 46.2
Total Production Available
for Sale 943.3 928.3 927.1 902.8
*Wholesale sales revenue less related cost of crude oil, other
feedstocks, product purchases and terminalling and transportation
divided by production available for sale.
**Effective January 1, 2005, crude unit capacity increased from 890 to
900 thousands of barrels daily due to a 10 thousand barrels-per-day
adjustment in MidContinent Refining.
***Data pertaining to the Eagle Point refinery for the twelve months ended
December 31, 2004 are based on the amounts attributable to the 354-day
ownership period (January 13, 2004 - December 31, 2004) divided by 366,
the number of days in the year.
Sunoco, Inc.
Financial and Operating Statistics (Unaudited)
For the Three For the Twelve
Months Ended Months Ended
December 31 December 31
2005 2004 2005 2004
Northeast Refining*
Realized Wholesale Margin (Per
Barrel of Production Available
for Sale) $9.18 $7.08 $8.35 $6.36
Market Benchmark 6-3-2-1 (Per
Barrel) $9.23 $6.21 $7.76 $6.40
Crude Inputs as Percent of
Crude Unit Rated Capacity 101 99 99 97
Throughputs** (Thousand Barrels
Daily):
Crude Oil 658.9 645.5 650.6 633.3
Other Feedstocks 57.3 49.2 52.8 52.9
Total Throughputs 716.2 694.7 703.4 686.2
Products Manufactured**
(Thousand Barrels Daily):
Gasoline 348.4 331.5 330.5 327.8
Middle Distillates 249.0 242.0 242.1 231.5
Residual Fuel 70.1 69.7 71.7 69.2
Petrochemicals 28.2 32.2 28.6 31.0
Other 46.9 45.0 55.8 51.7
Total Production 742.6 720.4 728.7 711.2
Less: Production Used as Fuel
in Refinery Operations 37.9 34.7 36.7 35.6
Total Production Available
for Sale 704.7 685.7 692.0 675.6
*Comprised of the Marcus Hook, Philadelphia and Eagle Point refineries.
**Data pertaining to the Eagle Point refinery for the twelve months ended
December 31, 2004 are based on the amounts attributable to the 354-day
period subsequent to the January 13, 2004 acquisition date divided by
366, the number of days in the year.
MidContinent Refining*
Realized Wholesale Margin (Per
Barrel of Production Available
for Sale) $12.25 $4.53 $9.54 $6.12
Market Benchmark 3-2-1 (Per
Barrel) $11.95 $4.52 $11.04 $7.04
Crude Inputs as Percent of
Crude Unit Rated Capacity** 95 101 94 95
Throughputs (Thousand Barrels
Daily):
Crude Oil 233.7 238.1 230.4 222.4
Other Feedstocks 7.5 6.0 6.6 5.9
Total Throughputs 241.2 244.1 237.0 228.3
*Comprised of the Toledo and Tulsa refineries.
**Effective January 1, 2005, crude unit capacity increased from 235 to 245
thousands of barrels daily as a result of a 10 thousand barrels-per-day
adjustment.
Sunoco, Inc.
Financial and Operating Statistics (Unaudited)
For the Three For the Twelve
Months Ended Months Ended
December 31 December 31
2005 2004 2005 2004
MidContinent Refining (continued)
Products Manufactured (Thousand
Barrels Daily):
Gasoline 111.3 116.4 112.9 114.2
Middle Distillates 81.7 78.9 77.4 68.8
Residual Fuel 4.8 3.9 4.5 3.8
Petrochemicals 7.6 8.7 8.2 7.1
Lubricants 13.8 12.3 13.2 13.6
Other 31.8 33.7 30.8 30.3
Total Production 251.0 253.9 247.0 237.8
Less: Production Used as Fuel
in Refinery Operations 12.4 11.3 11.9 10.6
Total Production Available
for Sale 238.6 242.6 235.1 227.2
RETAIL MARKETING
Income (Millions of Dollars) $25 $30 $30 $68
Retail Margin* (Per Barrel):
Gasoline $4.60 $4.99 $3.39 $4.13
Middle Distillates $5.66 $4.71 $4.49 $4.40
Sales of Petroleum Products
(Thousand Barrels Daily):
Gasoline 288.4 296.0 298.3 296.3
Middle Distillates 46.9 45.9 45.3 42.7
335.3 341.9 343.6 339.0
Total Retail Gasoline Outlets,
End of Period 4,763 4,804 4,763 4,804
Gasoline and Diesel Throughput
per Company Owned or Leased
Outlet (M Gal/Site/Month) 131 136 136 133
Convenience Stores:
Total Stores, End of Period 746 757 746 757
Merchandise Sales
(M$/Store/Month) $76 $72 $78 $73
Merchandise Margin (Company
Operated)
(% of Sales) 28% 27% 28% 26%
*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
2005 2004 2005 2004
CHEMICALS
Income (Millions of Dollars) $8* $40 $94* $94
Margin** (Cents per Pound):
All Products*** 11.4 13.7 12.1 11.0
Phenol and Related Products 9.3 12.5 10.9 9.7
Polypropylene*** 14.3 16.2 13.9 13.4
Sales (Millions of Pounds):
Phenol and Related Products 619 669 2,579 2,615
Polypropylene 512 556 2,218 2,239
Plasticizers# -- -- -- 28
Other 22 48 91 187
1,153 1,273 4,888 5,069
*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 a phenol supply contract dispute.
**Wholesale sales revenue less related cost of feedstocks, product
purchases and 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.
#The plasticizer business was divested in January 2004.
COKE
Income (Millions of Dollars) $10 $10 $48 $40
Coke Production (Thousands of
Tons) 634 486 2,405 1,965
Coke Sales (Thousands of Tons) 610 471 2,375 1,953
Sunoco, Inc.
Financial and Operating Statistics (Unaudited)
For the Three For the Twelve
Months Ended Months Ended
December 31 December 31
2005 2004 2005 2004
DEPRECIATION, DEPLETION AND
AMORTIZATION (Millions of Dollars)
Refining and Supply $54 $49 $201 $188
Retail Marketing 26 25 105 106
Chemicals 18 19 71 70
Logistics 11 10 36 32
Coke 4 3 16 13
$113 $106 $429 $409
For the Three For the Twelve
Months Ended Months Ended
December 31 December 31
2005 2004 2005 2004
CAPITAL EXPENDITURES
(Millions of Dollars)
Refining and Supply $177 $160 $687 $463*
Retail Marketing 45 39 117 103**
Chemicals 19 27 55 56*
Logistics 43*** 31 79***# 75*
Coke 4 47 32 135
$288 $304 $970 $832
*Excludes $250 million acquisition from El Paso Corporation 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 $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.
Sunoco, Inc.
Earnings Profile of Sunoco Businesses (after tax)
(Millions of Dollars, Except Per-Share Amounts)
(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) (27) (67)
Net financing expenses and
other (24) (20) (19) (15) (78)
89 234 128 178 629
Special items -- -- (24) -- (24)
Consolidated net income $89 $234 $104 $178 $605
Earnings (loss) per share of
common stock (diluted):
Income before special items $.58 $1.53 $.85 $1.24 $4.20
Special items -- -- (.16) -- (.16)
Net income $.58 $1.53 $.69 $1.24 $4.04
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.
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 187 223 203 260 873
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 7,127 24,513
Income before income tax
expense 145 379 169 302 995
Income tax expense 56 145 65 124 390
Net income $89 $234 $104 $178 $605
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 Balance Sheets
(Millions of Dollars)
At At
December 31 December 31
2005 2004
ASSETS (Unaudited)
Current Assets
Cash and cash equivalents $919 $405
Accounts and notes receivable, net 1,754 1,271
Inventories 799 765
Deferred income taxes 215 110
Total Current Assets 3,687 2,551
Investments and long-term receivables 143 115
Properties, plants and equipment, net 5,658 4,966
Prepaid retirement costs 12 11
Deferred charges and other assets 431 436
Total Assets $9,931 $8,079
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts payable and accrued liabilities $3,695 $2,570
Short-term borrowings and current portion
of long-term debt 177 103
Taxes payable 338 349
Total Current Liabilities 4,210 3,022
Long-term debt 1,234 1,379
Retirement benefit liabilities 563 539
Deferred income taxes 817 755
Other deferred credits and liabilities 409 247
Minority interests 647 530
Shareholders' equity 2,051 1,607
Total Liabilities and Shareholders' Equity $9,931 $8,079
Sunoco, Inc.
Consolidated Statements of Cash Flows
(Millions of Dollars)
For the Twelve Months
Ended December 31
2005 2004
(Unaudited)
INCREASES (DECREASES) IN CASH AND
CASH EQUIVALENTS
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $974 $605
Adjustments to reconcile net income to net
cash provided by operating activities:
Loss on phenol supply contract dispute 95 --
Provision for asset write-downs and other
matters -- 13
Loss on early extinguishment of debt -- 53
Depreciation, depletion and amortization 429 409
Deferred income tax expense 3 123
Proceeds from power contract restructuring 48 --
Payments in excess of expense for retirement
plans (39) (28)
Changes in working capital pertaining to
operating activities, net of effect
of acquisitions 494 559
Other 65 13
Net cash provided by operating activities 2,069 1,747
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures (970) (832)
Acquisitions (105) (431)
Proceeds from divestments 55 200
Other (15) 3
Net cash used in investing activities (1,035) (1,060)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds from (repayments of)
short-term borrowings (100) 100
Net proceeds from issuance of long-term debt 99 416
Repayments of long-term debt (70) (642)
Premiums paid on early extinguishment of debt -- (50)
Net proceeds from issuance of
Sunoco Logistics Partners L.P. limited
partnership units 160 129
Cash distributions to investors in
cokemaking operations (38) (36)
Cash distributions to investors in
Sunoco Logistics Partners L.P. (28) (20)
Cash dividend payments (103) (86)
Purchases of common stock for treasury (435) (568)
Proceeds from issuance of common stock under
management incentive and employee option plans 14 52
Other (19) (8)
Net cash used in financing activities (520) (713)
Net increase (decrease) in cash and cash
equivalents 514 (26)
Cash and cash equivalents at beginning of period 405 431
Cash and cash equivalents at end of period $919 $405
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:
Media: Jerry Davis, +1-215-977-6298,
Investors: Terry Delaney +1-215-977-6106, both of Sunoco, Inc.
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