US Sunoco Q2 net profit dives on eroding margins

06 August 2008 23:32  [Source: ICIS news]

HOUSTON (ICIS news)--US refiner Sunoco reported on Wednesday a net profit of $82m (€53m), down substantially from $509m reported for the same time last year, as soaring crude oil prices compressed the company's margins.

Much of the erosion occurred in the company's refining and supply segment, which reported second-quarter earnings of $32m, down from $482m reported for the same time last year, Sunoco said.

"Despite the recent decline in crude oil prices, refining margins, specifically for gasoline, continue to be weak," according to a statement by John Drosdick, Sunoco CEO.

The company also attributed the segment's drop to higher expenses and lower production volumes.

Sunoco's chemicals segment reported earnings of $3m, down from $6m reported for the same time last year. Sunoco attributed the drop to lower margins and sales.

Products made by the chemicals segment include phenol and polypropylene (PP), Sunoco said.

For all of Sunoco, the company reported second-quarter revenues of $16.1m, up from $10.8m reported for the same time last year.

Shares of Sunoco closed at $43.28 on the New York Stock Exchange, up 3.32%.

($1 = €0.65)

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By: Al Greenwood
+1 713 525 2653

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