Sunoco Inc. is offering for sale, through NRC Realty Advisors, LLC, 165 retail properties consisting of 132 currently operating retail fuel outlets, 17 non-operating locations that are expected to re-open and 16 commercial sites.

The sale is part of Sunoco’s ongoing retail portfolio management program, with the Philadelphia, Pa.-based independent refiner, marketer saying in its fourth quarter 2008 earnings report that it expects its retail outlet sales to generate an estimated $180 million. The company said that, during the 2006 to 2008 period, Sunoco generated $133 million of divestment proceeds and $34 million of after-tax gains related to the sale of 181 sites.

The properties being offered in the latest sale are located in Florida, Maryland, Massachusetts, New Hampshire, New Jersey, New York, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, and Virginia.

Sunoco’s downstream marketing operations include 4,700 retail sites.

Sunoco also reported fourth quarter 2008 net income of $204 million compared with a $9 million net loss during the same period a year ago. For full year 2008, Sunoco reported net income of $776 million, down $115 million from 2007.

In releasing the earnings results, Lynn Elsenhans, Sunoco Chairman and CEO, said, “[d]espite periods of very challenging market conditions and significant volatility in commodity prices, 2008 highlighted the strength of our diversified business portfolio.”

Sunoco’s refining and supply operations earned $182 million in the fourth quarter 2008 versus $43 million during the same three months in 2007.

“The increase in earnings came as reduced industry production related to hurricane activity and falling crude oil prices led to higher realized margins early in the quarter,” said Sunoco. “Margin realization also benefited from continued efforts to optimize the economics of crude oil purchases by limiting purchases of higher-premium Nigeria-sourced crude oil grades.”

During the fourth quarter 2008, crude throughput volumes at its refineries were 785,700 bpd compared with 883,200 bpd during the comparable year-ago period. Total throughputs when including other feedstock were 875,000 bpd for the period compared with 966,200 bpd during the fourth quarter 2007.

Gasoline production by the Philadelphia refiner averaged 407,500 bpd in the fourth quarter 2008 and 399,900 bpd for all of 2008 compared with 459,600 bpd in the last three months of 2007 and 439,200 bpd for full year 2007. Output of middle distillates in the fourth quarter 2008 averaged 313,100 bpd at Sunoco refineries, down from 345,100 bpd in the comparable year-ago period, and was up slightly at 316,200 bpd for 2008 compared with 314,400 bpd in 2007.

Sunoco has a crude refining capacity of 910,000 bpd through five refineries in the Northeast and Midcontinent. In the Northeast, the refineries include the Philadelphia complex and Marcus Hook facilities in Pa., and the Eagle Point refinery in New Jersey. The company also owns and operates a refinery in Toledo, Ohio, and in Tulsa, Oklahoma.

The company’s Northeast 6-3-2-1 refinery margin for the fourth quarter 2008 was $7.52 bbl, down from $9.01 bbl during the last three months of 2007, and averaged $6.99 bbl for all of 2008, down from $9.43 bbl in 2007. In the Midcontinent, the 3-2-1 refining margin was $4.29 bbl in the fourth quarter 2008, down from $9.49 bbl during the fourth quarter 2007, and was $9.49 bbl for the full year 2008 compared with $16.03 bbl in 2007.

“We expect that demand for refined products will continue to be impacted during 2009 by weakness in the economy and we plan to operate our refining system to meet market requirements,” said Sunoco. “In January, overall crude utilization was approximately 76 percent versus 86 percent in the fourth quarter of 2008.”

Sunoco’s retail marketing division in the fourth quarter 2008 was up $102 million on the year to a record $103 million.

“The increase in earnings was primarily due to significantly higher average retail gasoline and distillate margins that resulted from the steep decline in wholesale gasoline prices during the quarter,” said Sunoco.

The Philadelphia-based company reported lower sales volume during the period due primarily from a decline in consumer demand.

“As we enter 2009, we expect a challenging market for petroleum and chemical products that reflects continued economic weakness and additional global supply,” said Elsenhans. “However, our non-refining businesses should continue to provide a solid base of earnings and operating cash flow. In addition, we will be focused on maintaining our financial flexibility through the disciplined execution of our capital program, improvement in our cost structure and the active pursuit of opportunities to create value within our portfolio of assets.”

Sunoco also owns and operates approximately 6,000 miles of crude oil and refined product pipelines and 43 product terminals, and is a manufacturer of petrochemicals.