For the three-month period ended March 31, 2017, Sunoco LP said revenue totaled $4.4 billion, an increase of 36.7%, compared to $3.2 billion in the same period in 2016. The increase was the result of the average selling price of fuel being 56 cents per gallon higher than last year, additional wholesale gallons sold and increased merchandise sales.
Total gross profit was $503 million, compared to $511 million in first-quarter 2016. The key driver of the decrease was lower wholesale motor fuel profits partly offset by increases in retail motor fuel and merchandise profits.
Net income for first-quarter 2017 was $1 million, vs. $62 million in the same period in 2016.
Net income for the wholesale segment was $42 million compared to $87 million a year ago. Total wholesale gallons sold were 1.313 billion, compared to 1.233 billion in first-quarter 2016, an increase of 6.5% as a result of growth in both the Southwest geography and unbranded business. Sunoco earned 10.6 cents per gallon on these volumes, compared to 11.4 cents per gallon a year earlier.
Net loss for the retail segment was $41 million compared to a net loss of $25 million a year ago. Total retail gallons sold decreased by 2.1% to 595 million gallons as a result of the decreased demand across the company’s operating geography, particularly along the East Coast. Sunoco earned 23.1 cents per gallon on these volumes, compared to 21.3 cents per gallon a year earlier.
Total merchandise sales increased by 3.1% from a year ago to $540 million, reflecting the contribution from third-party acquisitions and NTI locations opened during the past 12 months. Merchandise sales contributed $170 million of gross profit with a retail merchandise margin of 31.6%, a decrease of 0.1 percentage points from first-quarter 2016.
Same-store merchandise sales decreased by 1.1% during the first quarter, reflecting weakness in c-store and restaurant operations in Texas, partly offset by growth in the company’s East Coast and Hawaiian operations. Same-store gallons decreased by 5.7% as a result of weakness throughout Sunoco’s retail geography.
As of March 31, 2017, Dallas-based Sunoco LP operated 1,355 c-stores and retail fuel outlets along the East Coast, in the Southwest and in Hawaii. Third-party wholesale customers totaled 7,825.