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PHILADELPHIA -- Sunoco Inc. reported net income of $116 million ($1.67 per share diluted) for the first quarter of 2005 vs. $89 million ($1.17 per share diluted) for the 2004 first quarter.
"Our first quarter results reflect an excellent start to 2005," said John G. Drosdick, Sunoco chairman and CEO. "While refining and supply results were up only modestly vs. the first-quarter 2004, significantly higher chemicals earnings, lower net financing expenses and 9 percent fewer shares outstanding enabled us to increase earnings per share by 43 percent vs. the year-ago quarter. With favorable market conditions entering the driving season, momentum remains positive for the company.
"In other businesses, Retail Marketing lost $8 million, as retail margins could not keep pace with persistently rising wholesale prices, which increased over 40 cents per gallon during the quarter. As we approach the peak driving season, market conditions for this business are improved.”
In other earnings news, petroleum refiner Giant Industries Inc. more than doubled its first-quarter revenue in comparison to the same period in 2004, company officials reported in the Phoenix, Ariz.-based Business Journal.
Scottsdale, Ariz.-based Giant reported net income of $10.1 million, or 80 cents per share, up from the $4.5 million, or 50 cents per share, reported in the same period a year earlier. Also, revenue for the quarter was $711.7 million, up from $540.8 million.
"Strong financial performances by our refining group and Phoenix Fuel contributed to the record earnings," said Fred Holliger, CEO at Giant. Net income was aided by a $2.1 million after-tax insurance reimbursement, and by a 22 percent gain in operating income at the company's Yorktown, Va., refinery, said Holliger.
Giant owns and operates one Virginia and two New Mexico crude oil refineries; a crude oil gathering pipeline system based in Farmington, N.M., which services the New Mexico refineries; finished products distribution terminals in Albuquerque, N.M., and Flagstaff; a fleet of crude oil and finished product truck transports; and a chain of retail service station/convenience stores in New Mexico, Colorado and Arizona. Giant is also the parent company of Phoenix Fuel Co. Inc., an Arizona wholesale petroleum products distributor.