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PHILADELPHIA -- Sunoco Inc. reported net income of $234 million for the second quarter of 2004 vs. $81 million for the 2003 second quarter. Results for the current quarter included a $4 million after-tax charge for estimated losses related to retail service stations held for sale. Excluding this special item, income for the second quarter was $238 million.
For the first half of 2004, Sunoco reported net income of $323 million vs. net income of $167 million for the 2003 first half. Excluding the aforementioned special item, Sunoco's income for the 2004 first half was $327 million. There were no special items in the 2003 first half.
"The second quarter was an outstanding one for Sunoco," said John G. Drosdick, Sunoco chairman and CEO. "The combination of strong refined product margins, significant contributions from our recent asset acquisitions and operational improvements in each of our business units enabled Sunoco to report record earnings for the quarter, demonstrating a new level of earnings power."
Drosdick added that refining and supply earned $217 million in the second quarter. During a period of record gasoline demand and margins, Sunoco's refineries achieved record levels of production and operating efficiency to optimally meet market demand.
"The company has been steadily investing in and improving the operations at our refineries over the past several years and this quarter's results are a good indication of the progress we have made," said Drosdick. "The Eagle Point refinery earned $42 million for the quarter and has earned $65 million since we acquired it on Jan. 13. With the addition of Eagle Point, the infrastructure investments we've made and the ongoing operational improvements to our refineries, I am confident refining and supply can continue to improve operating performance in the future."
Drosdick added that with the growth of the company's asset base with the Eagle Point refinery and the retail sites acquired from Speedway in June 2003, Sunoco has also strengthened its balance sheet in 2004. "We ended the quarter with $535 million of cash and a net debt-to-capital ratio, as defined in our revolving credit agreement, of 34 percent -- each improved from year-end 2003," said Drosdick. "As we look ahead to what Sunoco can achieve over the next several years, both disciplined portfolio growth and returning cash to our shareholders will remain core to our strategy to increase shareholder value."