(RTTNews) - Thursday, oil refiner Sunoco, Inc. (SUN: News ) reported a net loss for the third quarter, primarily due to a decline in demand for oil as well as an increase in oil prices, with revenues dropping significantly. Earnings for the quarter fell short of analysts' estimates, but revenues came in ahead of expectations.

The Philadelphia, Pennsylvania based company's GAAP net loss attributable to its shareholders for the quarter was $312 million or $2.67 per share, compared with a net income of $549 million or $4.70 per share for the third quarter year-ago.

On an adjusted basis, loss for the period was $34 million or $0.29 per share, compared with an income of $559 million or $4.78 per share in the prior year period.

On average, seventeen analysts polled by Thomson Reuters estimated a loss of 0.10 per share. Analysts' estimates typically exclude special items.

Sunoco recorded a $278 million after-tax provision for the quarter, related to indefinitely idling all process units at the Eagle Point refinery, of which $254 million represents non-cash charges. The refiner also recorded a $14 million after-tax charge in connection with the business improvement initiative, all of which was attributable to a non-cash provision for pension and postretirement settlement losses. The company also recorded a $12 million after-tax non-cash provision to write down to estimated fair value certain other assets in the Refining and Supply business, and recognized a $26 million after-tax gain on divestment of the retail heating oil and propane distribution business.
Sunoco's revenues for the third quarter declined to $8.69 billion from $15.15 billion in the year-ago period. Thirteen analysts' estimated revenues of $7.83 billion for the quarter.

Segment-wise, Refining and Supply incurred a loss from continuing operations totaling $118 million, compared to income of $398 million in the third quarter of 2008. The decline was attributed to lower realized margins and lower production volumes, partially offset by lower expenses. The company said that its realized margins and crude utilization rate were negatively affected by market weakness during the quarter.

Overall crude utilization rate was 74% for the quarter and included the impact of a planned turnaround at the company's Toledo refinery and a planned one-month maintenance outage at a fluid catalytic cracking unit in its Philadelphia refinery. Sunoco continues to idle the Eagle Point refinery.

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