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Sunoco Inc. Reports Operating Results (10-Q)

August 02, 2012 | About:
10qk

10qk

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Sunoco Inc. (SUN) filed Quarterly Report for the period ended 2012-06-30.

Sunoco, Inc. has a market cap of $5.02 billion; its shares were traded at around $47.37 with a P/E ratio of 90.6 and P/S ratio of 0.1. The dividend yield of Sunoco, Inc. stocks is 1.7%. Sunoco, Inc. had an annual average earning growth of 6.9% over the past 10 years.

Highlight of Business Operations:

The $874 million increase in pretax results from continuing operations attributable to Sunoco, Inc. shareholders in the six-month period ended June 30, 2012 was primarily due to higher LIFO gains ($668 million), lower expenses ($229 million), higher gains from the divestment of the Toledo refinery ($98 million), higher refined product margins ($75 million) and higher earnings in the Logistics business ($54 million). Partially offsetting these positive factors were lower refined product production volumes ($128 million) and higher provisions for asset write-downs and other matters ($100 million). The reduction in expenses and the lower refined product volumes were largely driven by the idling of the Marcus Hook refinery in December 2011.

Retail Marketing had pretax income of $67 million in the six-month period ended June 30, 2012 compared to $81 million in the six-month period ended June 30, 2011. The decrease in earnings was primarily attributable to higher expenses largely associated with the increase in company-operated sites and lower retail gasoline margins and sales volumes.

LIFO inventory profits Sunoco recognized gains of $213 million ($121 million after tax) during the second quarter of 2012 and $710 and $42 million ($423 and $26 million after tax) during the six months ended June 30, 2012 and 2011, respectively, related to the reduction of crude oil and refined product inventories in connection with the Companys exit from the refining business (see Note 6 to the condensed consolidated financial statements).

Income Taxes Income tax expense from continuing operations attributable to Sunoco, Inc. shareholders was $160 million in the second quarter of 2012 compared to $18 million in the second quarter of 2011. For the six months ended June 30, 2012, income tax expense from continuing operations attributable to Sunoco, Inc. shareholders was $324 million compared to $24 million for the six months ended June 30, 2011. The increase in income tax expense for the three and six months ended June 30, 2012 was primarily attributable to higher pretax income from continuing operations which was largely driven by the gains related to LIFO inventory profits. The gains related to the divestment of the Toledo refinery also contributed to the increase in income tax expense for the six months ended June 30, 2012.

Revenues Total revenues were $12.23 billion in the second quarter of 2012 compared to $11.32 billion in the second quarter of 2011. The eight percent increase was primarily due to higher crude oil sales in connection with the crude oil gathering and marketing activities of the Logistics business and higher refined product sales volumes. These positive factors were partially offset by lower refined product and crude oil sales prices. For the six months ended June 30, 2012, total revenues were $24.55 billion compared to $21.32 billion for the six months ended June 30, 2011. The 15 percent increase was primarily due to higher crude oil sales in connection with the crude oil gathering and marketing activities of the Logistics business and higher refined product prices and sales volumes.

Read the The complete Report

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