Sunoco 2011 Annual Report Download - page 49

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Refining and Supply—Continuing Operations
The Refining and Supply business currently manufactures petroleum products and commodity
petrochemicals at its Philadelphia refinery and sells these products to other Sunoco businesses and to wholesale
and industrial customers. The Company completed the sale of its Toledo refinery in March 2011 and indefinitely
idled the main processing units at its Marcus Hook, PA refinery in December 2011. The Company expects to
complete its exit from the refining business no later than July 2012. In 2009, Sunoco sold its discontinued Tulsa
refining operations and permanently shut down all process units at the Eagle Point refinery (see below). The
financial and operating data presented in the table below excludes amounts attributable to the discontinued Tulsa
refining operations.
2011 2010 2009
Pretax loss (millions of dollars) ........................................... $ (316) $ (19) $ (513)
Wholesale margin* (per barrel) ........................................... $ 3.39 $ 5.04 $ 3.66
Throughputs** (thousands of barrels daily):
Crude oil ........................................................... 436.2 588.8 625.4
Other feedstocks ..................................................... 46.9 56.4 70.8
Total throughputs .................................................. 483.1 645.2 696.2
Products manufactured** (thousands of barrels daily):
Gasoline ........................................................... 245.8 337.0 357.9
Middle distillates .................................................... 173.5 230.6 225.3
Residual fuel ........................................................ 30.0 34.6 59.2
Petrochemicals ...................................................... 14.4 23.4 27.3
Other .............................................................. 38.1 48.5 54.7
Total production ................................................... 501.8 674.1 724.4
Less: Production used as fuel in refinery operations ......................... 23.9 31.3 34.5
Total production available for sale ..................................... 477.9 642.8 689.9
Crude unit capacity** (thousands of barrels daily) at December 31 ............... 505.0 675.0 675.0
Crude unit capacity utilized .............................................. 82% 87% 78%
Conversion capacity (thousands of barrels daily) at December 31 ................ 230.0 343.0 343.0
Conversion capacity utilized ............................................. 79% 87% 79%
*Wholesale sales revenue less related cost of crude oil, other feedstocks, product purchases and terminalling and transportation divided by
production available for sale.
**Includes 175 thousand barrels-per-day of capacity at the Marcus Hook refinery which has been indefinitely idled and reflects a 170 thousand
barrels-per-day reduction attributable to the sale of the Toledo refinery in March 2011.
Refining and Supply pretax segment results from continuing operations decreased $297 million in 2011
primarily due to lower realized margins ($386 million) and production volumes ($205 million). These negative
factors were partially offset by lower expenses ($298 million). Production volumes in 2011 were negatively
impacted by the sale of the Toledo refinery, significant unplanned maintenance activities at the Philadelphia and
Marcus Hook refineries in the early part of 2011, as well as the idling of the Marcus Hook facility in December
2011. Margins deteriorated significantly in 2011 and were impacted by high crude oil premiums.
Refining and Supply pretax segment results from continuing operations improved $494 million in 2010
primarily due to higher realized margins ($347 million) and lower expenses ($220 million), partially offset by
lower production volumes ($87 million). Lower expenses were largely the result of cost reductions related to
ongoing business improvement initiatives, the permanent shutdown of the Eagle Point refinery in the fourth
quarter of 2009 and lower costs for purchased fuel and utilities. Production volumes were negatively affected by
significant planned turnaround activities at the Marcus Hook and Toledo refineries in the first quarter of 2010
and unplanned maintenance in the fourth quarter of 2010.
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