Sunoco posts 154% quarterly profit gain

Sunoco Inc., citing improved profit margins as crude-oil prices fell, said yesterday that its third-quarter net income more than doubled to $549 million.

The quarterly profit came to $4.70 a share, easily beating analysts' consensus forecast of $2.10 a share.

But the Philadelphia oil refiner also said that, to save about $375 million, it would abandon plans to upgrade its Tulsa, Okla., refinery. Sunoco is trying to sell the plant, which is the company's smallest and can process about 90,000 barrels of oil daily.

Results for the quarter ended Sept. 30 compared with a profit of $216 million, or $1.81 a share, a year earlier.

"After an extremely challenging market environment in the first half of 2008, very strong margins in our refining and supply and retail-marketing business led to a record result in the third quarter," said Lynn Elsenhans, who became Sunoco's president and chief executive officer Aug. 8.

Refining and supply posted a $424 million profit in the quarter, helped by lower crude prices and reduced industry production after Hurricanes Gustav and Ike in September. Both factors improved profit margins. In last year's third quarter, this unit earned $171 million.

The company earned $72 million in its marketing business compared with $31 million a year earlier.

The chemicals business earned $19 million, $6 million more than a year earlier.

Sunoco's daily refining capacity is 910,000 barrels, and it has 4,700 retail sites.