PHILADELPHIA, Nov. 2 /PRNewswire-FirstCall/ -- Sunoco, Inc. (NYSE: SUN)
today reported net income of $329 million ($2.39 per share diluted) for the
third quarter of 2005 versus $104 million ($.69 per share diluted) for the
2004 third quarter. Excluding special items, income for the current quarter
was $357 million ($2.60 per share diluted) compared to $128 million ($.85 per
share diluted) for the 2004 third quarter.
(Logo: http://www.newscom.com/cgi-bin/prnh/19981105/PHTH006 )
For the first nine months of 2005, Sunoco reported net income of $687
million ($4.97 per share diluted) versus net income of $427 million ($2.81 per
share diluted) for the first nine months of 2004. Excluding special items,
Sunoco's income was $715 million ($5.17 per share diluted) versus $451 million
($2.97 per share diluted) for the comparable 2004 period.
All per-share amounts reflect the two-for-one stock split effected on
August 1, 2005.
"Results for the Company continued to be very strong and were clearly
impacted by the effects of Hurricanes Katrina and Rita," said John G.
Drosdick, Sunoco Chairman and Chief Executive Officer. "With product demand
strong and industry production at near maximum levels before the disruptions,
the loss of over 10 percent of U.S. refining capacity during September caused
prices and margins to spike further, as both supply and demand responses were
necessary to keep the system adequately supplied.
"On the supply side, inventory draws, increased imports and higher
utilization rates and production yields from operating refineries were
required. To that end, aided by some temporary regulatory waivers, Sunoco's
refineries were able to achieve several production records, including crude
throughput and gasoline production levels during the month of September to
help supply our markets. On the demand side, the rapid increase in retail
prices combined with some temporary disruptions to the supply chain, led to
lower September demand.
"While the ultimate impact of the hurricanes on the energy complex will be
felt for some time, it is encouraging that the industry and the market have
responded to date and crude oil and refined product prices have largely
returned to pre-Katrina levels."
Commenting on Sunoco's third quarter results, Drosdick stated, "For the
quarter, earnings before special items totaled $357 million, led by Refining
and Supply income of $341 million. Realized refining margins were
approximately $7 per barrel prior to the Gulf Coast hurricanes and averaged
almost $11 per barrel for the quarter. Despite some unscheduled downtime in
mid-quarter, crude unit utilization was 96 percent and overall refining UEDC
(utilization of equivalent distillation capacity) was a near record 89 percent
for the quarter.
"Retail Marketing earned $6 million in the quarter - with post-Katrina
results approximating break-even. Our emphasis during September was to ensure
our retail customers were adequately supplied and to responsibly pass through
the volatility in wholesale prices, both up and down. Total volumes were up
slightly versus the comparable 2004 quarter," Drosdick said.
"Chemicals had earnings of $23 million for the quarter. Production losses
and other costs associated with the hurricanes reduced results by
approximately $4 million after tax. Physical damage to our Houston-area
facilities was minimal and operations returned to normal in October.
"In our other businesses, Coke and Logistics earned $15 million and $7
million, respectively.
"We continued to repurchase shares - $36 million for the quarter and $167
million through September 30, 2005 - while further strengthening our balance
sheet. Shares outstanding were 136.1 million at quarter-end, down two percent
for the year. As of September 30, 2005, the cash balance was $816 million and
net debt-to-capital (as defined in our revolving credit agreement) was 22
percent.
"Looking forward, the challenges and opportunities for refiners are
significant, as future product specification changes will be difficult and
spare capacity is limited. Our efforts and resources over the next several
years will be directed toward increasing the capacity and productivity of our
refining assets. To that end, we expect to invest approximately $1.8 billion
in our refineries over the next three years, with a greater emphasis on growth
projects which will increase total crude unit capacity by 100 thousand barrels
per day, to 1.0 million barrels per day, while improving our product yields
and crude oil and other feedstock processing flexibility. The first phase of
this capital program is already underway. A $300 million project to expand the
capacity of one of the fluid catalytic cracking units at the Philadelphia
refinery, and to significantly reconfigure the unit to upgrade approximately
25 thousand barrels per day of residual fuel production into higher-value
gasoline and distillate production is expected to be completed early in 2007.
The timely completion of this capital program is subject to the prompt receipt
of all necessary permits. This is the strategy we believe is right for our
industry, our customers and our shareholders."
DETAILS OF THIRD QUARTER RESULTS
REFINING AND SUPPLY
Refining and Supply earned $341 million in the current quarter versus $89
million in the third quarter of 2004. The $252 million increase in earnings
was due to higher realized margins and higher production volumes. The higher
realized margins are largely as a result of the supply disruptions on the Gulf
Coast due to Hurricanes Katrina and Rita and the increased use of discounted
high-acid crude oils, which averaged approximately 72 thousands of barrels
daily in the third quarter of 2005. Partially offsetting these factors were
higher expenses, including fuel- and employee-related charges.
Total crude unit throughput averaged 865.7 thousand barrels daily (96
percent utilization) for the quarter, with total production available for sale
approximating 83 million barrels.
RETAIL MARKETING
Retail Marketing earned $6 million in the third quarter of 2005 versus $22
million in the third quarter of 2004. The decrease in results was due largely
to lower retail margins for gasoline. Total volumes were up slightly versus
the prior-year quarter.
CHEMICALS
Chemicals earned $23 million in the third quarter of 2005 versus $30
million in the prior-year period. In addition to the impact of the hurricanes,
the decrease in earnings was primarily due to higher expenses, including fuel
and employee-related charges. Higher phenol margins, particularly for
bisphenol-A, were largely offset by lower margins on the propylene supply
contract with Equistar Chemicals, L.P.
LOGISTICS
Earnings for the Logistics segment were $7 million in the third quarter of
2005 versus $9 million in the prior-year period. The decrease was primarily
due to Sunoco's reduced ownership interest in Sunoco Logistics Partners L.P.
(NYSE: SXL).
COKE
The Coke business earned $15 million in the third quarter of 2005 versus
$12 million in the third quarter of 2004. The increase was due primarily to
higher gains from litigation settlements and income from the new cokemaking
facility in Haverhill, Ohio, which commenced operations in March 2005,
partially offset by higher business development and other expenses.
CORPORATE AND OTHER
Corporate administrative expenses were $25 million after tax in the
current quarter versus $15 million in the comparable quarter last year. The
increase was largely due to higher employee-related expenses, primarily
accruals for stock-based incentive compensation.
Net financing expenses were $10 million after tax in the third quarter of
2005 versus $19 million in the prior-year quarter. The decrease was primarily
due to lower interest expense resulting from 2004 debt restructuring
activities, increased capitalized interest and higher interest income.
SPECIAL ITEMS
During the third quarter of 2005, Sunoco recognized an $18 million after-
tax gain in connection with an income tax settlement of certain federal income
tax issues, net of a provision established for certain state and local tax
matters. In addition, Sunoco recognized a $46 million after-tax loss
associated with an arbitration decision related to a phenol pricing dispute.
The loss covers estimated damages for the period from June 2003 to April 2005.
Sunoco intends to contest the finding of liability and determination of
damages. The phenol supply agreement provides for a reopener for pricing on or
after January 1, 2005. The parties have been unsuccessful in negotiating the
post-2004 price and a new price will be determined in a second arbitration to
be held before a different arbitrator, scheduled for the second quarter of
2006.
During the third quarter of 2004, Sunoco recognized an $8 million after-
tax loss related to the sale of its one-third interest in BEF and a $34
million after-tax loss from the early extinguishment of outstanding debt.
Sunoco also recognized another $18 million after-tax gain from the settlement
of certain federal income tax issues.
NINE MONTH RESULTS
Sunoco earned $687 million for the first nine months of 2005 versus $427
million in the first nine months of 2004. The increase was primarily due to
higher margins in Sunoco's Refining and Supply and Chemicals businesses. Also
contributing to the improvement in earnings were higher production of refined
products, increased use of high-acid discounted crude oils, an absence of the
loss on early extinguishment of debt in connection with the debt restructuring
in 2004, lower net financing expenses and the absence of the loss related to
the sale of Sunoco's one-third interest in BEF. Partially offsetting these
positive factors were the loss associated with a phenol supply contract
dispute, lower margins in Retail Marketing, higher expenses, primarily fuel
and employee-related charges and a higher effective income tax rate.
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 third quarter's
results can monitor the Company's quarterly teleconference call, which is
scheduled for 4:00 p.m. ET on November 3, 2005. It can be accessed through
Sunoco's Web site - http://www.SunocoInc.com. It is suggested that you visit
the site prior to the teleconference to ensure that you have downloaded any
necessary software.
Those statements made in this release that are not historical facts are
forward-looking statements intended to be covered by the safe harbor
provisions of Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. Although Sunoco believes that the assumptions
underlying these statements are reasonable, investors are cautioned that such
forward-looking statements are inherently uncertain and necessarily involve
risks that may affect Sunoco's business prospects and performance causing
actual results to differ 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 August 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 Third Quarter and Nine-Month Financial Summary
(Unaudited)
Third Quarter 2005 2004
Revenues $9,295,000,000 $6,558,000,000
Net Income $329,000,000 $104,000,000
Net Income Per Share of
Common Stock*:
Basic $2.41 $.70
Diluted $2.39 $.69
Weighted-Average Number of Shares
Outstanding* (In Millions):
Basic 136.4 148.5
Diluted 137.4 150.0
Nine Months
Revenues $24,494,000,000 $18,079,000,000
Net Income $687,000,000 $427,000,000
Net Income Per Share of
Common Stock*:
Basic $5.01 $2.84
Diluted $4.97 $2.81
Weighted-Average Number of Shares
Outstanding* (In Millions):
Basic 137.2 150.1
Diluted 138.2 151.8
* 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
September 30
2005 2004 Variance
Refining and Supply $341 $89 $252
Retail Marketing 6 22 (16)
Chemicals 23 30 (7)
Logistics 7 9 (2)
Coke 15 12 3
Corporate and Other:
Corporate expenses (25) (15) (10)
Net financing expenses
and other (10) (19) 9
357 128 229
Special Items (28) (24) (4)
Consolidated net income $329 $104 $225
Earnings (loss) per share
of common stock (diluted):
Income before special items $2.60 $.85 $1.75
Special items (.21) (.16) (.05)
Net income $2.39 $.69 $1.70
Sunoco, Inc.
Earnings Profile of Sunoco Businesses (after tax)
(Millions of Dollars, Except Per-Share Amounts)
(Unaudited)
Nine Months Ended
September 30
2005 2004 Variance
Refining and Supply $661 $406 $255
Retail Marketing 5 38 (33)
Chemicals 86 54 32
Logistics 19 26 (7)
Coke 38 30 8
Corporate and Other:
Corporate expenses (57) (40) (17)
Net financing expenses
and other (37) (63) 26
715 451 264
Special Items (28) (24) (4)
Consolidated net income $687 $427 $260
Earnings (loss) per share
of common stock (diluted):
Income before special items $5.17 $2.97 $2.20
Special items (.20) (.16) (.04)
Net income $4.97 $2.81 $2.16
Sunoco, Inc.
Financial and Operating Statistics (Unaudited)
For the Three For the Nine
Months Ended Months Ended
September 30 September 30
2005 2004 2005 2004
TOTAL REFINING AND SUPPLY
Income (Millions of Dollars) $341 $89 $661 $406
Realized Wholesale Margin*
(Per Barrel of Production
Available for Sale) $10.80 $5.43 $8.20 $6.26
Crude Inputs as Percent of
Crude Unit Rated Capacity** 96 93 97 96
Throughputs*** (Thousand
Barrels Daily):
Crude Oil 865.7 827.4 877.1 846.3
Other Feedstocks 56.7 57.7 57.6 60.1
Total Throughputs 922.4 885.1 934.7 906.4
Products Manufactured***
(Thousand Barrels Daily):
Gasoline 433.1 429.6 437.9 440.0
Middle Distillates 315.4 288.4 315.8 293.5
Residual Fuel 74.6 63.6 76.6 72.8
Petrochemicals 34.5 37.8 37.1 37.2
Lubricants 12.9 13.8 13.0 14.0
Other 83.5 83.6 89.3 83.1
Total Production 954.0 916.8 969.7 940.6
Less: Production Used as Fuel
in Refinery Operations 48.7 45.1 48.1 46.3
Total Production
Available for Sale 905.3 871.7 921.6 894.3
* 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 nine months ended
September 30, 2004 are based on the amounts attributable to the
262-day ownership period (January 13, 2004 - September 30, 2004)
divided by 274, the number of days in the period.
Sunoco, Inc.
Financial and Operating Statistics (Unaudited)
For the Three For the Nine
Months Ended Months Ended
September 30 September 30
2005 2004 2005 2004
Northeast Refining*
Realized Wholesale Margin
(Per Barrel of Production
Available for Sale) $10.52 $5.09 $8.07 $6.11
Market Benchmark 6-3-2-1
(Per Barrel) $11.23 $4.58 $7.27 $6.46
Crude Inputs as Percent
of Crude Unit Rated Capacity 98 91 99 97
Throughputs** (Thousand
Barrels Daily):
Crude Oil 642.4 597.5 647.8 629.2
Other Feedstocks 50.5 51.8 51.3 54.2
Total Throughputs 692.9 649.3 699.1 683.4
Products Manufactured**
(Thousand Barrels Daily):
Gasoline 324.0 310.6 324.4 326.6
Middle Distillates 240.0 215.8 239.8 228.0
Residual Fuel 70.2 59.7 72.2 69.0
Petrochemicals 26.9 29.7 28.8 30.6
Other 53.4 54.7 58.8 53.9
Total Production 714.5 670.5 724.0 708.1
Less: Production Used as Fuel
in Refinery Operations 36.9 34.1 36.4 35.9
Total Production
Available for Sale 677.6 636.4 687.6 672.2
* Comprised of the Marcus Hook, Philadelphia and Eagle Point refineries.
** Data pertaining to the Eagle Point refinery for the nine months ended
September 30, 2004 are based on the amounts attributable to the 262-day
period subsequent to the January 13, 2004 acquisition date divided by
274, the number of days in the period.
MidContinent Refining*
Realized Wholesale Margin
(Per Barrel of Production
Available for Sale) $11.60 $6.36 $8.61 $6.70
Market Benchmark 3-2-1
(Per Barrel) $16.03 $6.91 $10.74 $7.88
Crude Inputs as Percent of
Crude Unit Rated Capacity** 91 98 94 92
Throughputs (Thousand
Barrels Daily):
Crude Oil 223.3 229.9 229.3 217.1
Other Feedstocks 6.2 5.9 6.3 5.9
Total Throughputs 229.5 235.8 235.6 223.0
* 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 Nine
Months Ended Months Ended
September 30 September 30
2005 2004 2005 2004
MidContinent Refining (continued)
Products Manufactured
(Thousand Barrels Daily):
Gasoline 109.1 119.0 113.5 113.4
Middle Distillates 75.4 72.6 76.0 65.5
Residual Fuel 4.4 3.9 4.4 3.8
Petrochemicals 7.6 8.1 8.3 6.6
Lubricants 12.9 13.8 13.0 14.0
Other 30.1 28.9 30.5 29.2
Total Production 239.5 246.3 245.7 232.5
Less: Production Used as Fuel
in Refinery Operations 11.8 11.0 11.7 10.4
Total Production
Available for Sale 227.7 235.3 234.0 222.1
RETAIL MARKETING
Income (Millions of Dollars) $6 $22 $5 $38
Retail Margin* (Per Barrel):
Gasoline $3.22 $4.24 $2.99 $3.84
Middle Distillates $3.70 $2.61 $4.07 $4.29
Sales of Petroleum Products
(Thousand Barrels Daily):
Gasoline 309.4 310.5 301.6 296.4
Middle Distillates 42.7 40.5 44.8 41.6
352.1 351.0 346.4 338.0
Total Retail Gasoline Outlets,
End of Period 4,795 4,811 4,795 4,811
Gasoline and Diesel Throughput
per Company Owned or Leased
Outlet (M Gal/Site/Month) 143 137 138 132
Convenience Stores:
Total Stores, End of Period 736 794 736 794
Merchandise Sales
(M$/Store/Month) $84 $78 $78 $74
Merchandise Margin (Company
Operated) (% of Sales) 29% 26% 28% 25%
* Retail sales price less related wholesale price and terminalling and
transportation costs per barrel. The retail sales price is the weighted-
average price received through the various branded marketing
distribution channels.
Sunoco, Inc.
Financial and Operating Statistics (Unaudited)
For the Three For the Nine
Months Ended Months Ended
September 30 September 30
2005 2004 2005 2004
CHEMICALS
Income (Millions of Dollars) $23* $30 $86* $54
Margin** (Cents per Pound):
All Products*** 11.5 11.4 12.3 10.1
Phenol and Related Products 10.7 9.3 11.5 8.7
Polypropylene*** 12.7 14.8 13.7 12.4
Sales (Millions of Pounds):
Phenol and Related Products 662 684 1,960 1,946
Polypropylene 590 561 1,706 1,683
Plasticizers# -- -- -- 28
Other 20 48 69 139
1,272 1,293 3,735 3,796
* Excludes a $46 million after-tax loss associated with a 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 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) $15 $12 $38 $30
Coke Production (Thousands
of Tons) 643 508 1,771 1,479
Coke Sales (Thousands of Tons) 647 509 1,765 1,482
Sunoco, Inc.
Financial and Operating Statistics (Unaudited)
For the Three For the Nine
Months Ended Months Ended
September 30 September 30
2005 2004 2005 2004
CAPITAL EXPENDITURES
(Millions of Dollars)
Refining and Supply $159 $155 $510 $303*
Retail Marketing 25 25 72 64**
Chemicals 8 10 36 29*
Logistics 17*** 12 36*** 44*
Coke 3 44 28 88
$212 $246 $682 $528
* 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 $100 million acquisition from ExxonMobil of a crude oil
pipeline system and related storage facilities located in Texas.
DEPRECIATION, DEPLETION AND
AMORTIZATION (Millions of Dollars)
Refining and Supply $51 $47 $147 $139
Retail Marketing 27 28 79 81
Chemicals 18 17 53 51
Logistics 9 8 25 22
Coke 4 3 12 10
$109 $103 $316 $303
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
Refining and Supply $108 $212 $341
Retail Marketing (8) 7 6
Chemicals 33 30 23
Logistics 3 9 7
Coke 10 13 15
Corporate and Other:
Corporate expenses (16) (16) (25)
Net financing expenses and other (14) (13) (10)
116 242 357
Special items -- -- (28)
Consolidated net income $116 $242 $329
Earnings (loss) per share of common
stock (diluted):
Income before special items $.83 $1.75 $2.60
Special items -- -- (.21)
Net income $.83 $1.75 $2.39
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
REVENUES
Sales and other operating revenue
(including consumer excise taxes) $7,191 $7,970 $9,345
Interest income 3 3 6
Other income (loss), net 15 17 (56)
7,209 7,990 9,295
COSTS AND EXPENSES
Cost of products sold and operating
expenses 6,059 6,581 7,702
Consumer excise taxes 585 640 675
Selling, general and administrative
expenses 209 225 242
Depreciation, depletion and amortization 105 102 109
Payroll, property and other taxes 36 28 33
Interest cost and debt expense 23 23 25
Interest capitalized (6) (6) (8)
7,011 7,593 8,778
Income before income tax expense 198 397 517
Income tax expense 82 155 188
Net income $116 $242 $329
Sunoco, Inc.
Consolidated Balance Sheets
(Millions of Dollars)
(Unaudited)
At At
September 30 December 31
2005 2004
ASSETS
Current Assets
Cash and cash equivalents $816 $405
Accounts and notes receivable, net 1,975 1,271
Inventories 1,112 765
Deferred income taxes 154 110
Total Current Assets 4,057 2,551
Investments and long-term receivables 122 115
Properties, plants and equipment, net 5,433 4,966
Prepaid retirement costs 12 11
Deferred charges and other assets 417 436
Total Assets $10,041 $8,079
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts payable and accrued liabilities $3,756 $2,570
Short-term borrowings and current portion
of long-term debt 222 103
Taxes payable 432 349
Total Current Liabilities 4,410 3,022
Long-term debt 1,265 1,379
Retirement benefit liabilities 487 539
Deferred income taxes 812 755
Other deferred credits and liabilities 334 247
Minority interests 671 530
Shareholders' equity 2,062 1,607
Total Liabilities and Shareholders' Equity $10,041 $8,079
Sunoco, Inc.
Consolidated Statements of Cash Flows
(Millions of Dollars)
(Unaudited)
For the Nine Months
Ended September 30
2005 2004
INCREASES (DECREASES) IN CASH AND CASH
EQUIVALENTS
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $687 $427
Adjustments to reconcile net income to net
cash provided by operating activities:
Loss on phenol supply contract dispute 78 --
Provision for asset write-downs and
other matters -- 13
Loss on early extinguishment of debt -- 53
Depreciation, depletion and amortization 316 303
Deferred income tax expense 18 114
Proceeds from power contract restructuring 48 --
Payments in excess of expense for
retirement plans (53) (42)
Changes in working capital pertaining to
operating activities, net of effect
of acquisitions 132 146
Other 47 (3)
Net cash provided by operating activities 1,273 1,011
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures (682) (528)
Acquisitions (100) (416)
Proceeds from divestments 32 135
Other 1 6
Net cash used in investing activities (749) (803)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds from short-term borrowings -- 100
Net proceeds from issuance of long-term debt 75 248
Repayments of long-term debt (70) (468)
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 (19) (31)
Cash distributions to investors in Sunoco
Logistics Partners L.P. (19) (14)
Cash dividend payments (76) (64)
Purchases of common stock for treasury (167) (236)
Proceeds from issuance of common stock under
management incentive and employee option plans 7 43
Other (4) (3)
Net cash used in financing activities (113) (346)
Net increase (decrease) in cash and cash
equivalents 411 (138)
Cash and cash equivalents at beginning of period 405 431
Cash and cash equivalents at end of period $816 $293
SOURCE Sunoco, Inc.
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Related links:
http://www.SunocoInc.com
Photo Notes:
NewsCom:
http://www.newscom.com/cgi-bin/prnh/19981105/PHTH006
PRN Photo Desk, photodesk@prnewswire.com
Company News On-Call:
http://www.prnewswire.com/comp/829144.html
CONTACT:
Jerry Davis (media), +1-215-977-6298, or
Terry Delaney (investors), +1-215-977-6106, both of Sunoco, Inc.
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