Sunoco CEO: Gasoline Demand Remains Flat On Year
07 Maggio 2009 - 10:22PM
Dow Jones News
Independent refiner Sunoco Inc. (SUN) said gasoline demand has
been flat from year-earlier levels.
"Demand has been flat from last year at this time," Chief
Executive Lynn Elsenhans told industry analysts on a call following
the company's first-quarter earnings release.
When pressed by analysts, Sunoco executives didn't rule out the
possibility of gasoline demand gains during the normal summer
driving season. However, Elsenhans emphasized that such gains
haven't yet been seen.
Sunoco has profited despite current tepid demand for
gasoline.
The company's core refining and supply business swung to a
profit of $23 million from a year-earlier loss of $123 million, due
to lower oil costs and higher realized margins, which was partially
offset by lower production volumes. Profit at its retail operations
slumped 77% to $6 million.
The price savings reflected Sunoco's efforts to run the cheapest
grades of crude at its refineries.
Especially at times of weak demand, when refineries are running
at lower rates, Sunoco is increasingly able to run cheaper grades
of crude. Sunoco has shifted away from running larger volumes of
expensive Nigerian crude, instead favoring less expensive
mixes.
The company's plants aren't able to run the cheapest possible
grades of crude at full rates. However, Sunoco has more flexibility
when its units run at lower rates.
-By Jessica Resnick-Ault, Dow Jones Newswires; 201-938-4435;
jessica.resnick-ault@dowjones.com