(RTTNews) - Philadelphia, Pennsylvania-based Sunoco Logistics Partners L.P. (SXL: News ) posted a lower third-quarter profit, despite an increase in operating income offset by expenses.

Sunoco Logistics' third quarter net income declined to $48.5 million or $1.13 per limited partner unit from $50.3 million or $1.41 per limited partner unit a year ago.

On average, 13 analysts polled by Thomson Reuters expected the company to report a profit of $1.44 per share for the quarter. Analysts' estimates typically exclude special items.

The company said operating income for the third quarter increased to $59.88 million from $57.86 million for the prior year's third quarter.

Depreciation and amortization expense increased to $12.24 million from $10.01 million year-over-year, primarily due to the MagTex acquisition.

Total revenues for the quarter decreased to $1.43 billion from $2.84 billion last year. Eight analysts expected revenue of $1.28 billion for the quarter.

Chief Executive Deborah Fretz said quarterly net income was negatively impacted by timing of contango crude oil inventory positions and will reverse in the next two quarters.

For the third quarter, total shipments increased to 56.85 million barrel miles per day from 43.77 million barrel miles per day a year ago. Revenue per barrel mile decreased to $0.612 cents from $0.638 cents last year.
Crude oil pipeline throughput was 611,000 bpd compared with 649,274 bpd, while crude oil purchases at wellhead was even at 176,643 bpd compared with 176,739 bpd a year ago.

Third-quarter gross margin per barrel of pipeline throughput was 46.5 cents compared with 57.2 cents in 2008. Limited Partners' interest in net income was $35.09 million compared with $40.61 million last year.

Sunoco Partners LLC, the general partner of Sunoco Logistics Partners L.P., declared a cash distribution for the third quarter 2009 of $1.065 per common partnership unit, $4.26 annualized, which is a 10.4% increase year-over-year and a 2.4% increase sequentially. The distribution is payable November 13 to unit holders of record on November 6, the company said.

For the nine months ended September 30, 2009, net income increased 40.9% to $196.0 million or $5.19 per limited partner unit from $139.16 million or $3.92 per limited partner unit in the comparable period of 2008.

Operating income for the period increased 40.8% to $228.66 million from $162.45 million a year ago. Nine-month total revenues declined to $3.76 billion from $8.56 billion year-on-year. Nine-month Limited Partners' interest in net income was $157.12 million compared with $112.98 million a year ago.

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