US Sunoco chems Q3 profits rise 46% yr on yr

05 November 2008 23:17  [Source: ICIS news]

HOUSTON (ICIS news)--US refiner Sunoco reported on Wednesday that its chemicals segment had a third-quarter net profit of $19m (€15m), up from $13m for the same time last year as falling feedstock costs more than offset lower sales volumes.

During the quarter, Sunoco sold 607m lb (275,000 tonnes) of phenol and related products, down from 633m lb for the same time last year, the company said. It sold 531m lb of polypropylene (PP), down from 623m lb for the same time last year.

Overall, Sunoco reported third-quarter net profits of $549m, up from $216m, for the same time last year. Revenues were $16.1bn, up from $11.5bn for the same time last year.

The company's refining and supply segment reported third-quarter earnings of $424m, up from $171m for the same time last year.

Sunoco attributed the increase in the segment to strong margins, caused by falling prices in crude oil and hurricane disruptions along the US Gulf coast.

In light of the tightened credit markets, Sunoco has suspended its proposed project to upgrade its refinery in Tulsa, Oklahoma, the company said. The move will save the company about $375m.

Sunoco is still trying to sell the Tulsa refinery, the company said.

($1 = €0.77)

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Author: Al Greenwood
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