03 May 2012 00:19 [Source: ICIS news]
HOUSTON (ICIS)--US refiner Sunoco swung to a first-quarter net income of $248m, benefitting greatly from the idling of refineries, the company reported on Wednesday.
Net income totalled $248m (€188m) in the first quarter, up from a loss of $101m in the same period of 2011, Sunoco said.
Excluding special items, the company had a loss of $53m, which was still an improvement over the first quarter of 2011, when the company recorded a $121m loss.
Sunoco recorded after-tax gains of $302m from the "reduction of crude oil and refined product … inventories primarily attributable to the idling of the Marcus Hook refinery" in Pennsylvania, the company said.
Sunoco recently delayed plans to idle its Philadelphia refinery in Pennsylvania.
The company has recently started negotiations with The Carlyle Group about a joint venture involving the refinery.
If the deal is completed, Sunoco would contribute the assets of the Philadelphia refinery in exchange for a non-operating minority interest in the joint venture.
Sunoco also recently announced that it was being acquired by Energy Transfer Partners (ETP) for $5.3bn.
CEO Brian MacDonald said the deal was a winner for shareholders.
"Because the consideration to be received by Sunoco shareholders consists of both cash and ETP units, our shareholders can also benefit from the potential upside of ETP's attractive yield and improving growth profile," he said.
The merger agreement will allow Sunoco to continue plans for a joint venture with The Carlyle Group, MacDonald added.
The company expects the merger to be complete in the second half of 2012.
($1 = €0.76)
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