"We were profitable on the strength of our retail, logistics, and coke operations--areas we have targeted for future growth," said Lynn L. Elsenhans, Sunoco's chairman [image-nocss] and CEO. "Despite posting a loss, our Refining & Supply segment's year-over-year improvement in financial performance reflects our continued focus on the fundamentals: margin capture, sustainably lowering our breakeven cost per barrel, and running our facilities safely and reliably. While transportation fuels will likely face continued weak demand, abundant supply and pressured margins for the foreseeable future, our strong balance sheet and a brand and logistics led strategy that is focused on higher growth leave us well positioned going forward."
Refining & Supply had a loss from continuing operations of $44 million in the third quarter of 2010 versus a loss of $118 million in the third quarter of 2009. The improved results were primarily due to higher realized margins and lower expenses.
Retail Marketing earned $41 million in the current quarter versus $49 million in the third quarter of 2009. The decrease in earnings was largely due to lower average retail gasoline and distillate margins partially offset by lower expenses.
Philadelphia-based Sunoco is a leading transportation fuel provider, with operations located primarily in the East Coast and Midwest regions of the United States. The company operates more than 4,800 branded retail locations that market transportation fuels and convenience store merchandise in 23 states. This retail network is principally supplied by Sunoco-owned refineries with a combined crude oil processing capacity of 675,000 barrels per day. Sunoco is also the general partner and has a 31% interest in Sunoco Logistics Partners LP, which owns and operates 7,600 miles of refined product and crude oil pipelines and approximately 40 active product terminals. Many of Sunoco Logistics' pipelines and terminals and storage facilities are integrated with Sunoco's retail network and refineries.
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