PHILADELPHIA -- Sunoco Inc. has reported net income of $426 million ($3.22 per share diluted) for second-quarter 2006 versus $242 million ($1.75 per share diluted) for second-quarter 2005. For the first half of 2006, Sunoco reported net income of $505 million ($3.80 per share diluted) versus $358 million ($2.58 per share diluted) in the first half of 2005.
Strong refining margins, particularly for ethanol-blended gasoline and low-sulfur diesel products, led to record quarterly earnings, said John G. Drosdick, Sunoco chairman and CEO. Margins strengthened [image-nocss] during the quarter as the tight supply/demand balance in refining markets continued. Despite the higher prices associated with crude oil and product price increases, we continued to see steady demand for transportation fuels in the second quarter.
He added, Refining margins have remained relatively strong into the third quarter to date. With continued modest demand growth, the outlook for refining remains favorable.
And he said, Nonrefining business unit earnings totaled $40 million for the quarter. Retail Marketing earnings were up versus a year ago due to slightly higher retail gasoline margins.
Refining & Supply earned $409 million in second-quarter 2006 versus $212 million in second-quarter 2005. The increase in earnings was due to higher realized margins in both the Northeast and MidContinent regions, particularly for wholesale gasoline and distillate products. Strong premiums for ethanol-blended gasoline and low-sulfur diesel fuel supported the wholesale marketplace throughout the second quarter. Partially offsetting these positive factors were higher expenses and lower production volumes. The higher expenses in the quarter were mainly the result of higher purchased fuel costs and expenses associated with maintenance activities. Also contributing to the increase in expenses were operating costs to produce low-sulfur fuels.
Retail Marketing earned $10 million in second-quarter 2006 versus $7 million in second-quarter 2005. The increase was primarily due to improved retail gasoline margins. Monthly gasoline and diesel throughput per company owned or leased outlet was approximately 3% higher than second-quarter 2005.
Sunoco earned $505 million, or $3.80 per share of common stock on a diluted basis, for the first six months of 2006 versus $358 million, or $2.58 per share, in the comparable 2005 period. The increase was primarily due to higher wholesale fuels margins. Also contributing to the improvement in earnings were higher retail gasoline margins.
Sunoco, Philadelphia, has more than 4,700 retail sites selling gasoline and convenience items.
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