DALLAS -- Retail fuel-price decreases resulted in Sunoco LP reporting revenue of $4.1 billion for second-quarter 2016, a decrease of 19.6%, compared to $5.1 billion in second-quarter 2015. The decline was the result of a 60.5-cents-per-gallon decrease in the average selling price of fuel partly offset by an increase in retail merchandise sales.
Total gross profit was $580.6 million, compared to $545.2 million in second-quarter 2015. Key drivers of the increase were a higher total weighted average fuel margin, an increase in merchandise margin and the contribution from third-party acquisitions and new-to-industry locations opened in the past 12 months.
Income from operations was $124.2 million, vs. $123.7 million in second-quarter 2015, reflecting an increase in gross profit offset by higher general and administrative and other operating expenses.
On a weighted-average basis, fuel margin for all gallons sold increased to 13.8 cents per gallon, compared to 12.9 cents per gallon in second-quarter 2015. The increase was primarily attributable to an increase in margins in both the retail and wholesale segments.
Net income attributable to partners for the wholesale segment was $83.2 million compared to $30.7 million a year ago. Adjusted EBITDA was $77.3 million, vs. $61.5 million in the second quarter of last year. Total wholesale gallons sold were 1,315.7 million, compared with 1,285.0 million in the second quarter of 2015, an increase of 2.4%. This includes gallons sold to consignment stores and third-party customers, including independent dealers, fuel distributors and commercial customers. The company earned 8.8 cents per gallon on these volumes, compared to 8.6 cents per gallon a year earlier.
Net loss attributable to partners for the retail segment was $11 million compared to a net income of $4.2 million a year ago. Adjusted EBITDA was $86.7 million, vs. $80.9 million in the second quarter of last year. Total retail gallons sold increased by 0.3% to 641.2 million gallons as a result of the contribution from third-party acquisitions and new-to-industry locations opened in the past 12 months. The company earned 24 cents per gallon on these volumes, compared to 21.4 cents per gallon a year earlier.
Total merchandise sales increased by 2.8% from a year ago to $576.6 million, reflecting the contribution from third-party acquisitions and new-to-industry locations opened in the past 12 months. Merchandise sales contributed $187.3 million of gross profit with a retail merchandise margin of 32.5%, a 100-basis-point increase from second-quarter 2015.
Same-store merchandise sales decreased by 1.8%, reflecting continued weakness in Sunoco LP’s convenience-store operations in the Texas oil producing regions and inclement weather in May in Texas and on the East Coast. Same-store fuel sales decreased by 2.8% as a result of weakness throughout the state of Texas, particularly lower year-over-year activity in oil producing markets. In the Texas oil producing regions, same-store merchandise sales decreased by 15.6%, and same-store fuel sales declined 17.9%. Excluding the oil producing regions, same-store sales increased by 0.6%, and same-store gallons decreased by 1%.
As of June 30, Sunoco LP operated approximately 1,340 convenience stores and retail fuel outlets along the East Coast, in the Southwest and in Hawaii. Third party operated sites totaled approximately 5,600 locations.
Dallas-based Sunoco LP is a master limited partnership (MLP) that operates approximately 1,340 retail fuel sites and convenience stores (including APlus, Stripes, Aloha Island Mart and Tigermarket brands) and distributes motor fuel to c-stores, independent dealers, commercial customers and distributors located in more than 30 states at approximately 6,900 sites. Its parent, Energy Transfer Equity LP, owns Sunoco's general partner and incentive distribution rights.
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