SAN FRANCISCO, Feb 4 (Reuters) - U.S. refiner Sunoco Inc posted a strong rise in profit on Wednesday despite a sharp drop in revenue, as a fall in crude oil prices helped fatten margins for products such as gasoline and heating oil.
'As we enter 2009, we expect a challenging market for petroleum and chemical products that reflects continued economic weakness and additional global supply,' Chief Executive Lynn Elsenhans said in a statement, though she expected a solid earnings base in nonrefining businesses.
U.S. refiners enjoyed a recovery in profits in the fourth quarter as crude oil prices fell from record levels reached in July, but the market has soured as the U.S. recession has eroded demand for gasoline.
Philadelphia-based Sunoco said profit rose to $313 million, or $2.68 per share, before items, from $23 million, or 20 cents per share, a year ago. Revenue fell 31 percent to $9.14 billion.
Analysts, on average, expected profit before items of $2.24 per share, according Reuters Estimates.
Fourth-quarter net income was $204 million, compared with a loss of $9 million a year before. Among other items for the most recent fourth quarter, Sunoco recorded an $85 million aftertax provision to write down the value of its Tulsa refinery, and $35 million for a writedown at its polypropylene plant in Bayport, Texas.
Sunoco shares closed 22 cents higher at $44.91 Wednesday before the earnings release, but changed hands at $44.50 in thin after-hours trade.
(Reporting by Braden Reddall; editing by Jeffrey Benkoe) Keywords: SUNOCO/ (braden.reddall@thomsonreuters.com; +1 415 677 2543; brad en.reddall.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
'As we enter 2009, we expect a challenging market for petroleum and chemical products that reflects continued economic weakness and additional global supply,' Chief Executive Lynn Elsenhans said in a statement, though she expected a solid earnings base in nonrefining businesses.
U.S. refiners enjoyed a recovery in profits in the fourth quarter as crude oil prices fell from record levels reached in July, but the market has soured as the U.S. recession has eroded demand for gasoline.
Philadelphia-based Sunoco said profit rose to $313 million, or $2.68 per share, before items, from $23 million, or 20 cents per share, a year ago. Revenue fell 31 percent to $9.14 billion.
Analysts, on average, expected profit before items of $2.24 per share, according Reuters Estimates.
Fourth-quarter net income was $204 million, compared with a loss of $9 million a year before. Among other items for the most recent fourth quarter, Sunoco recorded an $85 million aftertax provision to write down the value of its Tulsa refinery, and $35 million for a writedown at its polypropylene plant in Bayport, Texas.
Sunoco shares closed 22 cents higher at $44.91 Wednesday before the earnings release, but changed hands at $44.50 in thin after-hours trade.
(Reporting by Braden Reddall; editing by Jeffrey Benkoe) Keywords: SUNOCO/ (braden.reddall@thomsonreuters.com; +1 415 677 2543; brad en.reddall.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.