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SUN REPORTS FOURTH CONSECUTIVE GAIN IN QUARTERLY OPERATING INCOME

 PHILADELPHIA, Jan. 28 /PRNewswire/ -- Sun Company, Inc. (NYSE: SUN) today reported net income of $37 million, or $.35 per share of common stock, for the fourth quarter of 1992.
 The results were up significantly from the fourth quarter of 1991, when Sun recorded a net loss of $35 million ($.33 per share), and also marked the fourth consecutive quarter in which Sun's operating income has increased.
 "Our new business direction is beginning to have a positive impact on our bottom line," said Robert H. Campbell, Sun chairman and CEO. "While fourth quarter results reflect improved earnings in all operating units compared to the 1991 fourth quarter, the major improvement came from the fact that we had no fourth quarter exploration expenses outside of Canada and from improved margins on U.S. sales of branded gasoline."
 Sun's strategy, announced last year, is to focus on its value-added domestic refining and marketing businesses -- branded marketing in the Northeastern United States, lubricants, chemicals, and logistics. At the same time, Sun is withdrawing from oil and gas exploration activities outside of Canada and seeking buyers for its coal operations.
 "One of our goals in refining and marketing is to reduce the impact on our bottom line of wholesale fuels margins, which have significantly depressed earnings for the past two years due to high refinery utilization rates and a continuing oversupply of product in the marketplace," Campbell noted.
 "During the fourth quarter of 1992, we took two major steps towards that goal. We reconfigured our Tulsa, Okla., refinery to produce lubricants as the principal product, and we also modified our Puerto Rico refinery to emphasize its lubricants manufacturing capability."
 Campbell said the company had exceeded its $100 million expense reduction goal for 1992 and that this also contributed to the improvement in fourth quarter earnings. Revenues for the quarter were $2.7 billion, versus $2.9 billion a year ago.
 FOURTH QUARTER RESULTS
 Domestic Refining and Marketing
 Quarterly income from domestic refining and marketing operations was $6 million, compared to a loss of $14 million in the 1991 fourth quarter. The increase was due primarily to higher margins on branded gasoline sales and to lower operating and administrative expenses, which more than compensated for slightly lower margins on wholesale fuels and petrochemicals compared to the 1991 fourth quarter. Total domestic refined product sales volumes in the 1992 fourth quarter were 653.6 thousand barrels a day, down slightly from the 1991 level of 657.5 thousand barrels a day.
 International Exploration and Production
 The international exploration and production business earned $30 million during the current quarter, compared to a loss of $11 million in the year-ago period. This $41 million increase in earnings was due principally to Sun's decision to withdraw from exploration activities outside of Canada. Campbell noted that costs incurred in honoring the company's remaining exploration commitments were excluded from the fourth quarter results, as they are being charged against an accrual established in the third quarter as part of the provision for write-down of assets and other matters.
 Although international crude oil production volumes were down by 16 percent from the 1991 fourth quarter and natural gas prices were 24 percent lower, income from international production activities increased due to lower depreciation and administrative expenses. The decline in crude oil volumes was largely due to operating problems at one of Sun's producing properties in the North Sea, while the decline in natural gas prices was caused by the weakening of the British pound.
 Also contributing to the improved international exploration and production quarterly earnings was an after-tax gain of $9 million from changes in foreign currency exchange rates, versus a foreign exchange rate loss of $6 million after-tax in the 1991 fourth quarter.
 Suncor
 Suncor, Sun's 68-percent-owned, fully integrated Canadian subsidiary, earned $10 million during the current quarter, an increase of $7 million from the 1991 fourth quarter. Higher income from Suncor's oil sands operations and conventional exploration and production activities was partially offset by lower income from its refining and marketing operations.
 Oil sands income was up by $6 million from the 1991 quarter due to a five percent increase in synthetic crude oil production volumes, partially offset by a four percent decrease in synthetic crude oil prices. Oil sands production averaged 59.6 thousand barrels a day during the 1992 fourth quarter, while synthetic crude oil prices averaged $19.59 a barrel.
 Canadian exploration and production income was also up by $6 million, largely due to increased gains from asset sales, lower operating and administrative expenses, and a 25-percent increase in natural gas sales volumes. Suncor's refining and marketing earnings were down by $6 million due to lower margins.
 Corporate and Discontinued Operations
 Corporate expenses for the quarter declined to $3 million from the year-ago level of $10 million due to the impact of Sun's restructuring and consolidation adjustments. Income from coal operations was $4 million for the quarter versus $5 million in the 1991 fourth quarter. The coal company results are now being reported as discontinued operations.
 FULL YEAR RESULTS
 For the full year 1992, Sun had a net loss of $559 million ($5.26 per share), compared with a net loss of $387 million ($3.65 per share) in 1991.
 However, excluding special items and the results of discontinued operations, Sun's income for the full year 1992 totalled $30 million ($.28 per share) versus comparable income of $51 million ($.48 per share) for 1991. The decline in earnings before special items was attributed to lower earnings from domestic refining and marketing operations and Suncor, and to higher net financing expenses.
 Domestic refining and marketing income was down for the year due to significantly lower wholesale fuels margins, partially offset by higher retail margins, a three percent increase in refined product sales volumes, lower administrative and operating expenses, and a $6 million after-tax gain on the sale of a pipeline terminal.
 The decline in Suncor's full year income was caused by lower synthetic crude oil prices and volumes, an increased Crown royalty on synthetic crude oil production, and lower margins on refined product sales, as well as by the fact that in 1991 Suncor recorded a $6 million after-tax gain in refining and marketing from the sale of an ocean-going vessel and also had a favorable consolidating adjustment. Partially offsetting these declines were lower operating and administrative expenses. Production of synthetic crude oil from the oil sands plant averaged 58.5 thousand barrels a day -- the second best annual production -- despite the impact of a fire at the plant in the second quarter.
 Corporate net financing expenses were higher due primarily to lower interest income and lower leasing results.
 Partially offsetting these reductions to 1992 income before special items were higher earnings in international exploration and production due to the absence of fourth-quarter 1992 exploration related expenses, higher foreign exchange gains, and lower depreciation and administrative expenses. Lower corporate administrative expenses resulting from the 1991 restructuring also partially offset the decline in 1992 operating earnings.
 Special charges to income in 1992 consisted of a $456 million after- tax loss for asset write-downs and other matters related to Sun's various restructuring moves, a $261 million after-tax charge from the adoption of the new accounting standard regarding post-retirement benefits other than pensions, and an $8 million after-tax loss from the sale of four million shares of Suncor common stock.
 Two substantial positive items were also excluded from 1992 operating income -- an after-tax gain of $117 million from a settlement with Iran relating to the expropriation of Sun's oil production interests in Iran following the 1979 Iranian Revolution, and income of $19 million from the discontinued coal operations.
 Special charges in 1991 consisted of $438 million after-tax attributable principally to employee terminations, an accrual for environmental remediation work at various domestic refining and marketing sites, and after-tax losses from discontinued coal and real estate operations.
 SUN COMPANY, INC.
 1992 Fourth Quarter and Full Year Financial Summary
 Fourth Quarter 1992 1991
 Revenues $2,667,000,000 $2,877,000,000
 Net Income (Loss) $37,000,000 $(35,000,000)
 Net Income (Loss) per Share
 of Common Stock $.35 $(.33)
 Weighted Average Number of
 Common Shares Outstanding
 (In Thousands) 106,344 106,059
 12 Months
 Revenues $10,682,000,000 $11,553,000,000
 Net Income (Loss) $(559,000,000) $(387,000,000)
 Net Income (Loss) per Share
 of Common Stock $(5.26) $(3.65)
 Weighted Average Number of
 Common Shares Outstanding
 (In Thousands) 106,212 106,070
 Earnings Profile of Sun Businesses (after tax)
 (Millions of Dollars)
 Three months ended Dec. 31 1992 1991(A) Variance
 REFINING AND MARKETING $ 6 $(14) $20
 INTERNATIONAL EXPLORATION AND
 PRODUCTION 30 (11) 41
 CANADA (SUNCOR)
 Exploration and Production 6 -- 6
 Oil Sands 9 3 6
 Refining and Marketing (2) 4 (6)
 Corporate Expenses(B) (3) (4) 1
 Net Financing Expenses -- -- --
 Total Canada (Suncor) 10 3 7
 CORPORATE
 Corporate Expenses(B) (3) (10) 7
 Net Financing Expenses (10) (8) (2)
 Total 33 (40) 73
 INCOME FROM
 DISCONTINUED OPERATIONS
 Coal 4 5 (1)
 Real Estate -- -- --
 CONSOLIDATED
 NET INCOME (LOSS) $ 37 $(35) $72
 NET INCOME (LOSS) PER SHARE
 OF COMMON STOCK $.35 $(.33)
 (A) Restated to conform to 1992 presentation.
 (B) Includes consolidation adjustments.
 Earnings Profile of Sun Businesses (after tax)
 (Millions of Dollars)
 12 Months Ended Dec. 31 1992 1991(A) Variance
 REFINING AND MARKETING $ 69 $ 105 $ (36)
 INTERNATIONAL EXPLORATION AND
 PRODUCTION 9 (38) 47
 CANADA (SUNCOR)
 Exploration and Production 7 1 6
 Oil Sands 9 30 (21)
 Refining and Marketing 2 19 (17)
 Corporate Expenses(B) (10) -- (10)
 Net Financing Expenses (3) (3) --
 Total Canada (Suncor) 5 47 (42)
 CORPORATE
 Corporate Expenses (19) (38) 19
 Net Financing Expenses (34) (25) (9)
 Total 30 51 (21)
 INCOME (LOSS) FROM DISCONTINUED
 OPERATIONS
 Coal(C) 19 (2) 21
 Real Estate -- (255)(D) 255
 LOSS ON SALE OF SUNCOR STOCK (8) -- (8)
 IRANIAN LITIGATION SETTLEMENT 117 -- 117
 PROVISION FOR WRITE-DOWN OF
 ASSETS AND OTHER MATTERS (456) (103) (353)
 ACCRUAL FOR ENVIRONMENTAL
 REMEDIATION -- (78)(E) 78
 CUMULATIVE EFFECT OF CHANGE
 IN ACCOUNTING PRINCIPLE (261) -- (261)
 CONSOLIDATED
 NET INCOME (LOSS) $(559) $(387) $(172)
 NET INCOME (LOSS) PER
 SHARE OF COMMON STOCK $(5.26) $(3.65)
 (A) Restated to conform to 1992 presentation.
 (B) Includes consolidation adjustments.
 (C) Includes $3 and $21 million after-tax provisions for write-down of assets in 1992 and 1991, respectively.
 (D) Includes a $223 million after-tax provision for write-down of assets and estimated loss on disposition.
 (E) Represents accrual for environmental remediation work at various domestic refining and marketing sites.
 Quarterly Financial and Operating Statistics (Preliminary)
 During October 1992, the Company adopted a new strategic direction which focuses on growth in Sun's value-added businesses which are comprised of branded gasoline marketing in the northeastern United States, lubricants, chemicals and logistics. The following table sets forth Sun's domestic refining and marketing results on a business line basis (in millions of dollars):
 Period ended Quarter 12 months
 Dec. 31 1992 1991 1992 1991
 Fuels (A) $(2) $(26) $(15) $ 10
 Lubricants (B) (1) (5) 9 14
 Chemicals -- 7 28 38
 Logistics (C) 9 10 47 43
 Total $ 6 $(14) $ 69 $105
 (A) Consists of fuels operations at Sun's Marcus Hook, Pa., Philadelphia and Toledo, Ohio, refineries and branded gasoline marketing.
 (B) Consists of lubricants and related wholesale fuels operations at Sun's Tulsa, Okla., and Yabucoa, Puerto Rico, lubricants refineries.
 (C) Consists of pipeline and petroleum terminalling operations.
 Periods ended Quarter 12 months
 Dec. 31 1992 1991 1992 1991
 REFINING AND MARKETING
 Input to Crude Units
 (Thousand Barrels Daily) 534.9 533.7 536.8 531.1
 Refining Input as Percent of
 Rated Capacity 89 89 89 89
 Sales of Refined Products
 (Thousand Barrels Daily):
 Gasoline 320.5 321.4 313.9 313.9
 Middle Distillates 172.5 174.3 169.0 161.7
 Residual Fuel 49.6 57.2 50.5 43.0
 Petrochemicals 27.5 26.7 28.9 25.3
 Lubricants 15.3 16.8 17.4 17.4
 Asphalt 30.6 22.0 29.3 25.2
 Propane 15.1 13.3 14.5 13.3
 Other 22.5 25.8 22.3 29.3
 Total 653.6 657.5 645.8 629.1
 INTERNATIONAL EXPLORATION AND
 PRODUCTION
 Net Production of Crude Oil
 and Condensate
 (Thousand Barrels Daily) 40.1 47.9 42.1 47.6
 Average Price (Per Barrel) $18.68 $19.63 $18.57 $18.58
 Natural Gas-North Sea
 (Million Cubic Feet Daily) 62 67 46 56
 Average Price
 (Per Thousand Cubic Feet) $2.76 $3.64 $3.21 $3.58
 Exploration Expenses
 (Millions of Dollars)(A) $-- $29 $42 $84
 (A) Reflects exploration expenses prior to the Company's decision to withdraw from oil and gas exploration activities outside of Canada, effective Sept. 30, 1992.
 CANADA (SUNCOR)
 Net Production of Crude Oil
 and Condensate
 (Thousand Barrels Daily) 8.5 8.0 9.3 8.6
 Average Price (Per Barrel) $17.14 $17.65 $17.12 $18.09
 Natural Gas
 (Million Cubic Feet Daily) 136 109 116 83
 Average Price
 (Per Thousand Cubic Feet) $1.26 $1.24 $1.08 $1.22
 Exploration Expenses
 (Millions of Dollars) $5 $5 $18 $18
 Synthetic Crude Oil Produced
 for Shipment
 (Thousand Barrels Daily) 59.6 56.7 58.5 60.6
 Average Price (Per Barrel) $19.59 $20.33 $19.03 $20.03
 Input to Crude Units
 (Thousand Barrels Daily) 74.3 76.6 71.3 72.1
 Refining Input as Percent of
 Rated Capacity 106 109 102 103
 Sales of Refined Products
 (Thousand Barrels Daily):
 Gasoline 44.9 45.7 43.8 43.3
 Middle Distillates 25.5 20.8 22.2 19.5
 Other 15.7 17.3 17.0 17.2
 Total 86.1 83.8 83.0 80.0
 DISCONTINUED COAL OPERATIONS
 Coal Production (Thousand Tons):
 Bituminous:
 Metallurgical 506 483 2,047 2,090
 Steam 1,689 1,992 7,265 7,969
 Subbituminous 3,128 3,530 13,338 13,743
 Total 5,323 6,005 22,650 23,802
 Coke Production (Thousand Tons) 158 159 640 622
 /delval/
 -0- 1/28/93
 /CONTACT: Bud Davis (media), 215-977-3485, or Katie Turner (investors), 215-977-6106, both of Sun Co./
 (SUN)


CO: Sun Company Incorporated ST: Pennsylvania IN: OIL SU:

CC -- PH003 -- 0041 01/28/93 08:11 EST
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