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Sunoco posts 39 pct decline in 3Q profit
Oil refiner Sunoco Inc. (NYSE:SUN) said Wednesday third-quarter profit fell 39 percent, hurt by sharp increases in crude oil prices and a decline in gasoline demand.
The company reported income of $216 million, or $1.81 per share, compared with $351 million, or $2.76 per share, in the year-ago period.
Revenue rose 10 percent to $11.5 billion from $10.5 billion in the third quarter of 2006.
Analysts polled by Thomson Financial, on average, estimated earnings of $2.14 per share.
'In a very volatile market for refined product margins, the company posted solid third-quarter results,' said John G. Drosdick, chairman and chief executive, in a release. 'Our refining and supply business 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.'
Sunoco's refining and supply unit reported profit slid to $171 million from $273 million, primarily due to higher refinery expenses.
Profit in the company's retail marketing business fell by more than half to $31 million from $77 million in the year-ago quarter, hurt by lower average retail gasoline margins.
Sunoco shares rose $1.90 to close at $73.60, then fell $1.50 to $1.50 to $72.10 in aftermarket trading.
http://money.cnn.com/news/newsfeeds/articles/newstex/AFX-0013-20645942.htm
Oil refiner Sunoco Inc. (NYSE:SUN) said Wednesday third-quarter profit fell 39 percent, hurt by sharp increases in crude oil prices and a decline in gasoline demand.
The company reported income of $216 million, or $1.81 per share, compared with $351 million, or $2.76 per share, in the year-ago period.
Revenue rose 10 percent to $11.5 billion from $10.5 billion in the third quarter of 2006.
Analysts polled by Thomson Financial, on average, estimated earnings of $2.14 per share.
'In a very volatile market for refined product margins, the company posted solid third-quarter results,' said John G. Drosdick, chairman and chief executive, in a release. 'Our refining and supply business 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.'
Sunoco's refining and supply unit reported profit slid to $171 million from $273 million, primarily due to higher refinery expenses.
Profit in the company's retail marketing business fell by more than half to $31 million from $77 million in the year-ago quarter, hurt by lower average retail gasoline margins.
Sunoco shares rose $1.90 to close at $73.60, then fell $1.50 to $1.50 to $72.10 in aftermarket trading.
http://money.cnn.com/news/newsfeeds/articles/newstex/AFX-0013-20645942.htm
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