Sunoco 2009 Annual Report Download - page 46

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Earnings from discontinued Tulsa refining operations decreased $64 million in 2009 primarily due to lower
realized margins and the absence of operations after the sale on June 1, 2009. In 2008, earnings from
discontinued Tulsa refining operations decreased $32 million primarily due to higher expenses and lower realized
margins, partially offset by higher production volumes.
Retail Marketing
The Retail Marketing business sells gasoline and middle distillates at retail and operates convenience stores
in 23 states, primarily on the East Coast and in the Midwest region of the United States.
2009 2008 2007
Income (millions of dollars) .......................................... $86 $201 $69
Retail margin* (per barrel):
Gasoline ....................................................... $3.72 $6.30 $3.92
Middle distillates ................................................. $6.22 $7.20 $5.05
Sales (thousands of barrels daily):
Gasoline ....................................................... 291.0 287.4 301.0
Middle distillates ................................................. 30.2 37.7 40.6
321.2 325.1 341.6
Retail gasoline outlets .............................................. 4,711 4,720 4,684
*Retail sales price less related wholesale price and terminalling and transportation costs per barrel. The retail sales price is the weighted-
average price received through the various branded marketing distribution channels.
Retail Marketing segment income decreased $115 million in 2009 primarily due to lower average retail
gasoline ($165 million) and distillate ($8 million) margins and lower distillate sales volumes ($11 million),
partially offset by lower expenses ($63 million) and higher divestment gains attributable to the Retail Portfolio
Management program ($11 million). Retail gasoline margins in the prior-year period benefited from the rapid
decrease in wholesale prices during the second half of 2008. During 2009, Sunoco sold its retail heating oil and
propane distribution business for $83 million and recognized a $26 million net after-tax gain in connection with
the transaction. This gain is shown separately in Corporate and Other in the Earnings Profile of Sunoco
Businesses.
Retail Marketing segment income increased $132 million in 2008 primarily due to higher retail gasoline
($159 million) and distillate ($19 million) margins, partially offset by lower retail gasoline ($18 million) and
distillate ($4 million) sales volumes and lower divestment gains attributable to the Retail Portfolio Management
program ($18 million).
38