PHILADELPHIA -- Sunoco Inc. has reported net income of $216 million ($1.81 per share diluted) for third-quarter 2007 versus $351 million ($2.76 per share diluted) for third-quarter 2006. For the first nine months of 2007, Sunoco reported net income of $900 million ($7.46 per share diluted) versus $856 million ($6.53 per share diluted) in the first nine months of 2006.
"In a very volatile market for refined product margins, the company posted solid third-quarter results," said John G. Drosdick, Sunoco chairman and CEO. "Our Refining & Supply business [image-nocss] earned $171 million despite lower margins that resulted from the end-of-driving-season decline in gasoline demand and the sharp increase in crude oil prices during the quarter.
He added, "Non-refining business unit earnings totaled $65 million in the third quarter. While retail gasoline margins were lower than the levels seen in last year's exceptionally strong third quarter, Sunoco's Retail Marketing business earned $31 million, benefiting from periods of declining wholesale gasoline prices.
Refining & Supply earned $171 million in third-quarter 2007 versus $273 million in third-quarter 2006. The decrease in earnings was due to lower realized margins and higher refinery expenses, partially offset by higher production volumes. A planned maintenance turnaround at the Tulsa refinery that was completed in July reduced production in third-quarter 2007 by approximately 600 thousand barrels. In third-quarter 2006, unscheduled maintenance reduced production in the Northeast system by about three million barrels.
Retail Marketing earned $31 million in third-quarter 2007 versus $77 million in third-quarter 2006. The decrease in earnings was primarily due to lower average retail gasoline margins. Monthly gasoline and diesel throughput per company-owned or leased outlet increased approximately three percent versus third-quarter 2006.
Sunoco earned $900 million, or $7.46 per share of common stock on a diluted basis, for the first nine months of 2007 versus $856 million, or $6.53 per share, in the comparable 2006 period. The increase was primarily due to a gain related to the prior issuance of Sunoco Logistics Partners limited partnership units, higher margins in Sunoco's Refining & Supply and Chemicals businesses, higher gains on retail asset divestments and a lower effective tax rate. Partially offsetting these positive factors were higher expenses, lower production of refined products and lower margins in Sunoco's Retail Marketing business.
Sunoco, headquartered in Philadelphia, is a leading manufacturer and marketer of petroleum and petrochemical products. With 910,000 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.
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