PHILADELPHIA, Nov. 1 /PRNewswire-FirstCall/ -- Sunoco, Inc. (NYSE: SUN)
today reported net income of $351 million ($2.76 per share diluted) for the
third quarter of 2006 versus $329 million ($2.39 per share diluted) for the
third quarter of 2005. Excluding special items, income was $357 million
($2.60 per share diluted) for the third quarter of 2005. There were no
special items in the current third-quarter period.
(Logo: http://www.newscom.com/cgi-bin/prnh/19981105/PHTH006 )
For the first nine months of 2006, Sunoco reported net income of $856
million ($6.53 per share diluted) versus $687 million ($4.97 per share
diluted) for the first nine months of 2005. Excluding special items,
Sunoco's income for the first nine months of 2005 was $715 million ($5.17
per share diluted). There were no special items in the 2006 year-to-date
period.
"Continued strong Refining and Supply earnings and a record quarterly
result from our Retail Marketing business led to an excellent quarter for
the Company," said John G. Drosdick, Sunoco Chairman and Chief Executive
Officer. "Refining and Supply earned $273 million during the quarter, with
margins and operations particularly strong in our MidContinent Refining
system. Realized margins for MidContinent operations averaged almost $15
per barrel and crude unit utilization was 97 percent of rated capacity. In
the Northeast, realized margins on average were $8.35 per barrel, as
declining wholesale gasoline margins were partially offset by continued
strong value-added margins, particularly for the new specification on-road
diesel products. Unscheduled maintenance in our Northeast Refining system
reduced production by approximately three million barrels in the third
quarter.
"Offsetting some of the wholesale gasoline margin decline during the
quarter, our Retail Marketing business earned $77 million, as crude oil and
wholesale gasoline prices fell sharply in August and September. While
retail prices for gasoline declined from their early August high through
the end of September by approximately 70 cents per gallon, average margins
were strong."
Commenting on the fourth quarter, Drosdick said, "With lower refining
margins and high industry inventories entering the quarter, we took the
opportunity in October to complete refinery maintenance activity at several
processing units in our Northeast system and at our Toledo refinery. The
work included a combination of accelerated turnaround work and other
opportunistic maintenance and will reduce October net production by
approximately three million barrels. No further significant maintenance is
scheduled for the remainder of this year. In Retail Marketing, retail
gasoline price declines continued into October and margins have returned to
more historical levels."
Drosdick added, "We continue to execute our share reduction program,
spending $536 million during the quarter and ended September with 123.1
million shares outstanding. Year-to-date, there has been a 10 million net
reduction (7.5 percent) in outstanding shares. This represents a meaningful
contribution to our established record of returning cash to Sunoco's
shareholders. With the Board-approved increase announced in early
September, we currently have remaining share repurchase authorization of
approximately $1.1 billion."
DETAILS OF THIRD QUARTER RESULTS
REFINING AND SUPPLY
Refining and Supply earned $273 million in the third quarter versus
$341 million in the third quarter of 2005. In comparison with last year's
hurricane-impacted third quarter, much lower average margins and production
in Sunoco's Northeast Refining system were partially offset by higher
realized margins and production in the MidContinent system. In the
Northeast system, margins declined $2.17 per barrel, as much lower
wholesale gasoline margins were partially offset by improved petrochemical
margins. In the MidContinent system, margins were up $3.30 per barrel due
to stronger distillate, petrochemical and lubricant margins.
Also impacting this year's third quarter were higher expenses, largely
due to higher purchased fuel and maintenance costs and higher operating
costs to produce low-sulfur fuels.
Total crude unit throughput averaged 850 thousand barrels daily (94
percent utilization) for the quarter, with total production available for
sale approximating 83 million barrels.
RETAIL MARKETING
Retail Marketing earned $77 million in the third quarter of 2006 versus
$6 million in the third quarter of 2005. The increase was primarily due to
higher retail gasoline margins. Monthly gasoline and diesel throughput per
company owned or leased outlet was approximately 5 percent higher than the
third quarter of 2005.
CHEMICALS
Chemicals earned $5 million in the third quarter of 2006 versus $23
million in the prior-year period. The decrease in earnings was due
primarily to lower margins and sales volumes for both phenol and
polypropylene as prices for propylene feedstocks continued to rise.
LOGISTICS
Earnings for the Logistics segment were $7 million in both third
quarter periods. Higher earnings attributable to Eastern pipeline and
terminalling operations and operating results from the Partnership's
acquisitions completed in 2006 and 2005 were offset by lower earnings from
crude oil acquisition and marketing activities and Sunoco's reduced
ownership in the Partnership.
COKE
The Coke business earned $9 million in the third quarter of 2006 versus
$15 million in the third quarter of 2005. The decrease was primarily due to
a $5 million partial phase-out of tax credits. Year-to-date, Sun Coke
recorded only 53 percent of the benefit of the tax credits that otherwise
would have been available without regard to the phase-out.
CORPORATE AND OTHER
Corporate administrative expenses were $11 million after tax in the
current quarter versus $25 million in the comparable quarter last year. The
decrease was largely due to lower accruals for stock-related incentive
compensation.
Net financing expenses and other were $9 million after tax in the third
quarter of 2006 versus $10 million in the third quarter of 2005 as higher
interest income was largely offset by lower capitalized interest. In
addition, the third quarter of 2006 includes a $5 million net after-tax
gain attributable to income tax matters and a $7 million after-tax charge
attributable to a correction of an error in the computation of the
preferential return of third-party investors in Sunoco's cokemaking
operations.
SPECIAL ITEMS
During the third quarter of 2005, Sunoco settled certain federal income
tax issues and established a provision for certain state and local tax
matters, the net effect of which was to increase net income by $18 million.
Also during the third quarter of 2005, Sunoco recognized a $46 million
after-tax loss associated with Chemicals' phenol supply contract dispute.
NINE-MONTH RESULTS
Sunoco earned $856 million, or $6.53 per share of common stock on a
diluted basis, for the first nine months of 2006 versus $687 million, or
$4.97 per share, in the comparable 2005 period. The increase was primarily
due to higher wholesale fuels margins, higher retail gasoline margins and
the absence of the loss associated with the phenol supply contract dispute.
Partially offsetting these positive factors were higher expenses, lower
chemical margins and lower refinery production volumes.
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 5,400 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 third
quarter's results can monitor the Company's quarterly teleconference call,
which is scheduled for 3:00 p.m. ET on November 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 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 refined product 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 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 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 and 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 Second Quarter
2006 Form 10-Q filed with the Securities and Exchange Commission on August
3, 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.
-END OF TEXT, CHARTS FOLLOW-
Sunoco, Inc.
2006 Third Quarter and Nine-Month Financial Summary
(Unaudited)
Third Quarter 2006 2005
Revenues $10,496,000,000 $9,295,000,000
Net Income $351,000,000 $329,000,000
Net Income Per Share of
Common Stock*:
Basic $2.77 $2.41
Diluted $2.76 $2.39
Weighted-Average Number of Shares
Outstanding* (In Millions):
Basic 126.8 136.4
Diluted 127.4 137.4
Nine Months
Revenues $29,679,000,000 $24,494,000,000
Net Income $856,000,000 $687,000,000
Net Income Per Share of
Common Stock*:
Basic $6.56 $5.01
Diluted $6.53 $4.97
Weighted-Average Number of Shares
Outstanding* (In Millions):
Basic 130.4 137.2
Diluted 131.1 138.2
* 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
September 30
2006 2005 Variance
Refining and Supply $273 $341 $(68)
Retail Marketing 77 6 71
Chemicals 5 23 (18)
Logistics 7 7 --
Coke 9 15 (6)
Corporate and Other:
Corporate expenses (11) (25) 14
Net financing expenses and other (9) (10) 1
351 357 (6)
Special items -- (28) 28
Consolidated net income $351 $329 $22
Earnings (loss) per share
of common stock (diluted):
Income before special items $2.76 $2.60 $.16
Special items -- (.21) .21
Net income $2.76 $2.39 $.37
Sunoco, Inc.
Earnings Profile of Sunoco Businesses (after tax)
(Millions of Dollars, Except Per Share Amounts)
(Unaudited)
Nine Months
Ended
September 30
2006 2005 Variance
Refining and Supply $755 $661 $ 94
Retail Marketing 87 5 82
Chemicals 27 86 (59)
Logistics 25 19 6
Coke 33 38 (5)
Corporate and Other:
Corporate expenses (38) (57) 19
Net financing expenses and other (33) (37) 4
856 715 141
Special items -- (28) 28
Consolidated net income $856 $687 $169
Earnings (loss) per share
of common stock (diluted):
Income before special items $6.53 $5.17 $1.36
Special items -- (.20) .20
Net income $6.53 $4.97 $1.56
Sunoco, Inc.
Financial and Operating Statistics (Unaudited)
For the Three For the Nine
Months Ended Months Ended
September 30 September 30
2006 2005 2006 2005
TOTAL REFINING AND SUPPLY
Income (Millions of Dollars) $273 $341 $755 $661
Realized Wholesale Margin*
(Per Barrel of Production
Available for Sale) $10.13 $10.80 $9.61 $8.20
Crude Inputs as Percent
of Crude Unit Rated
Capacity 94 96 94 97
Throughputs (Thousand Barrels
Daily):
Crude Oil 849.7 865.7 849.7 877.1
Other Feedstocks 67.1 56.7 70.9 57.6
Total Throughputs 916.8 922.4 920.6 934.7
Products Manufactured (Thousand
Barrels Daily):
Gasoline 442.6 433.1 441.5 437.9
Middle Distillates 297.5 315.4 305.2 315.8
Residual Fuel 72.2 74.6 73.1 76.6
Petrochemicals 35.9 34.5 35.3 37.1
Lubricants 14.2 12.9 14.0 13.0
Other 86.0 83.5 85.1 89.3
Total Production 948.4 954.0 954.2 969.7
Less: Production Used as Fuel
in Refinery Operations 44.4 48.7 44.6 48.1
Total Production
Available for Sale 904.0 905.3 909.6 921.6
*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 Nine
Months Ended Months Ended
September 30 September 30
2006 2005 2006 2005
Northeast Refining*
Realized Wholesale Margin (Per
Barrel of Production Available
for Sale) $8.35 $10.52 $8.48 $8.07
Market Benchmark 6-3-2-1 (Per
Barrel) $5.29 $11.23 $6.18 $7.27
Crude Inputs as Percent of Crude
Unit Rated Capacity 93 98 95 99
Throughputs (Thousand Barrels
Daily):
Crude Oil 612.2 642.4 620.6 647.8
Other Feedstocks 58.2 50.5 62.6 51.3
Total Throughputs 670.4 692.9 683.2 699.1
Products Manufactured (Thousand
Barrels Daily):
Gasoline 318.7 324.0 326.8 324.4
Middle Distillates 220.9 240.0 228.8 239.8
Residual Fuel 67.9 70.2 68.9 72.2
Petrochemicals 28.5 26.9 28.3 28.8
Other 54.6 53.4 53.4 58.8
Total Production 690.6 714.5 706.2 724.0
Less: Production Used as Fuel
in Refinery Operations 32.7 36.9 33.1 36.4
Total Production Available
for Sale 657.9 677.6 673.1 687.6
*Comprised of the Marcus Hook, Philadelphia and Eagle Point refineries.
MidContinent Refining*
Realized Wholesale Margin (Per
Barrel of Production Available
for Sale) $14.90 $11.60 $12.82 $8.61
Market Benchmark 3-2-1 (Per
Barrel) $14.13 $16.03 $13.56 $10.74
Crude Inputs as Percent of Crude
Unit Rated Capacity 97 91 93 94
Throughputs (Thousand Barrels
Daily):
Crude Oil 237.5 223.3 229.1 229.3
Other Feedstocks 8.9 6.2 8.3 6.3
Total Throughputs 246.4 229.5 237.4 235.6
*Comprised of the Toledo and Tulsa refineries.
Sunoco, Inc.
Financial and Operating Statistics (Unaudited)
For the Three For the Nine
Months Ended Months Ended
September 30 September 30
2006 2005 2006 2005
MidContinent Refining (continued)
Products Manufactured (Thousand
Barrels Daily):
Gasoline 123.9 109.1 114.7 113.5
Middle Distillates 76.6 75.4 76.4 76.0
Residual Fuel 4.3 4.4 4.2 4.4
Petrochemicals 7.4 7.6 7.0 8.3
Lubricants 14.2 12.9 14.0 13.0
Other 31.4 30.1 31.7 30.5
Total Production 257.8 239.5 248.0 245.7
Less: Production Used as Fuel
in Refinery Operations 11.7 11.8 11.5 11.7
Total Production Available
for Sale 246.1 227.7 236.5 234.0
RETAIL MARKETING
Income (Millions of Dollars) $77 $6 $87 $5
Retail Margin* (Per Barrel):
Gasoline $7.25 $3.22 $4.61 $2.99
Middle Distillates $4.37 $3.70 $4.37 $4.07
Sales of Petroleum Products
(Thousand Barrels Daily):
Gasoline 311.0 309.4 302.6 301.6
Middle Distillates 40.9 42.7 42.9 44.8
351.9 352.1 345.5 346.4
Total Retail Gasoline Outlets,
End of Period 4,694 4,795 4,694 4,795
Gasoline and Diesel Throughput
per Company Owned or Leased
Outlet (M Gal/Site/Month) 150 143 142 138
Convenience Stores:
Total Stores, End of Period 734 736 734 736
Merchandise Sales (M$/Store/
Month) $87 $84 $80 $78
Merchandise Margin (Company
Operated) (% of Sales) 27% 29% 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 Nine
Months Ended Months Ended
September 30 September 30
2006* 2005 2006* 2005
CHEMICALS
Income (Millions of Dollars) $5 $23** $27 $86**
Margin*** (Cents per Pound):
All Products# 9.3 11.5 9.6 12.3
Phenol and Related Products 7.0 10.7 7.7 11.5
Polypropylene# 12.2 12.7 12.2 13.7
Sales (Millions of Pounds):
Phenol and Related Products 607 662 1,903 1,960
Polypropylene 550 590 1,681 1,706
Other 21 20 63 69
1,178 1,272 3,647 3,735
*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 $46 million after-tax loss 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) $7 $7 $25 $19
Pipeline and Terminal Throughput
(Thousand Barrels Daily)*:
Unaffiliated Customers 1,083 805 1,041 819
Affiliated Customers 1,646 1,647 1,641 1,643
2,729 2,452 2,682 2,462
*Excludes joint-venture operations.
COKE*
Income (Millions of Dollars) $9 $15 $33 $38
Coke Production (Thousands of
Tons) 620 643 1,878 1,771
Coke Sales (Thousands of Tons) 618 647 1,897 1,765
*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 Nine
Months Ended Months Ended
September 30 September 30
2006 2005 2006 2005
CAPITAL EXPENDITURES (Millions
of Dollars)
Refining and Supply $167 $159 $476 $510
Retail Marketing 28 25 64 72
Chemicals 14 8 41* 36
Logistics 33 17** 85*** 36**
Coke 4 3 9 28
$246 $212 $675 $682
*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 a $100 million acquisition from ExxonMobil of a crude oil
pipeline system and related storage facilities located in Texas.
***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.
DEPRECIATION, DEPLETION AND
AMORTIZATION (Millions of Dollars)
Refining and Supply $59 $51 $170 $147
Retail Marketing 25 27 75 79
Chemicals 18 18 55 53
Logistics 9 9 28 25
Coke 4 4 13 12
$115 $109 $341 $316
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
Refining and Supply $73 $409 $273
Retail Marketing -- 10 77
Chemicals 14 8 5
Logistics 6 12 7
Coke 14 10 9
Corporate and Other:
Corporate expenses (16) (11) (11)
Net financing expenses and other (12) (12) (9)
79 426 351
Special items -- -- --
Consolidated net income $79 $426 $351
Earnings per share of common stock (diluted):
Income before special items $.59 $3.22 $2.76
Special items -- -- --
Net income $.59 $3.22 $2.76
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
REVENUES
Sales and other operating revenue (including
consumer excise taxes) $8,569 $10,575 $10,480
Interest income 10 8 11
Other income, net 14 7 5
8,593 10,590 10,496
COSTS AND EXPENSES
Cost of products sold and operating expenses 7,454 8,858 8,867
Consumer excise taxes 628 663 679
Selling, general and administrative expenses 210 210 215
Depreciation, depletion and amortization 112 114 115
Payroll, property and other taxes 34 31 33
Interest cost and debt expense 26 27 25
Interest capitalized (1) (4) (5)
8,463 9,899 9,929
Income before income tax expense 130 691 567
Income tax expense 51 265 216
Net income $79 $426 $351
Sunoco, Inc.
Consolidated Balance Sheets
(Millions of Dollars)
(Unaudited)
At At
September 30 December 31
2006 2005
ASSETS
Current Assets
Cash and cash equivalents $218 $919
Accounts and notes receivable, net 2,348 1,754
Inventories 1,281 799
Deferred income taxes 217 215
Total Current Assets 4,064 3,687
Investments and long-term receivables 126 143
Properties, plants and equipment, net 6,094 5,658
Prepaid retirement costs 13 12
Deferred charges and other assets 460 431
Total Assets $10,757 $9,931
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts payable and accrued liabilities $ 4,185 $3,695
Short-term borrowings 150 --
Current portion of long-term debt 62 177
Taxes payable 372 338
Total Current Liabilities 4,769 4,210
Long-term debt 1,285 1,234
Retirement benefit liabilities 513 563
Deferred income taxes 923 817
Other deferred credits and liabilities 392 409
Minority interests 749 647
Shareholders' equity 2,126 2,051
Total Liabilities and Shareholders' Equity $10,757 $9,931
Sunoco, Inc.
Consolidated Statements of Cash Flows
(Millions of Dollars)
(Unaudited)
For the Nine Months
Ended September 30
2006 2005
INCREASES (DECREASES) IN CASH AND CASH EQUIVALENTS
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $856 $687
Adjustments to reconcile net income to net
cash provided by operating activities:
Phenol supply contract dispute loss (payment) (95) 78
Proceeds from power contract restructuring -- 48
Depreciation, depletion and amortization 341 316
Deferred income tax expense 74 18
Payments in excess of expense for retirement
plans (50) (53)
Changes in working capital pertaining to
operating activities, net of effect of
acquisitions (396) 132
Other 2 47
Net cash provided by operating activities 732 1,273
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures (675) (682)
Acquisitions (123) (100)
Proceeds from divestments 39 32
Other 4 1
Net cash used in investing activities (755) (749)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds from short-term borrowings 150 --
Net proceeds from issuance of long-term debt 361 75
Repayments of long-term debt (426) (70)
Net proceeds from issuance of Sunoco Logistics
Partners L.P. limited partnership units 110 160
Cash distributions to investors in cokemaking
operations (13) (19)
Cash distributions to investors in Sunoco
Logistics Partners L.P. (35) (19)
Cash dividend payments (92) (76)
Purchases of common stock for treasury (734) (167)
Proceeds from issuance of common stock under
management incentive plans 1 7
Other -- (4)
Net cash used in financing activities (678) (113)
Net increase (decrease) in cash and cash
equivalents (701) 411
Cash and cash equivalents at beginning of period 919 405
Cash and cash equivalents at end of period $218 $816
SOURCE Sunoco, Inc.
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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, Inc.
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