Sunoco LP (SUN) Reports Q3 2023 Earnings: Net Income Rises to $272 Million
Net income for Q3 2023 was $272 million, a significant increase from $83 million in Q3 2022.
Adjusted EBITDA for Q3 2023 was $257 million, a slight decrease from $276 million in Q3 2022.
Distributable Cash Flow for Q3 2023 was $181 million, compared to $196 million in Q3 2022.
Fuel sales increased by 7% compared to Q3 2022, with a total of 2.1 billion gallons sold.
On November 1, 2023, Sunoco LP (NYSE:SUN) released its financial and operating results for the third quarter ended September 30, 2023. The company reported a significant increase in net income, reaching $272 million compared to $83 million in the same quarter of the previous year. However, Adjusted EBITDA and Distributable Cash Flow saw slight decreases compared to Q3 2022.
Financial Performance
Adjusted EBITDA for Q3 2023 was $257 million, compared to $276 million in Q3 2022. Distributable Cash Flow for the same period was $181 million, compared to $196 million in Q3 2022. Despite these slight decreases, the company reported an increase in fuel sales, selling approximately 2.1 billion gallons of fuel in Q3 2023, a 7% increase compared to Q3 2022.
Balance Sheet and Cash Flow
As of September 30, 2023, Sunoco LP (NYSE:SUN) had $647 million of borrowings against its revolving credit facility and other long-term debt of $3.2 billion. The company maintained liquidity of approximately $847 million at the end of the quarter under its $1.5 billion revolving credit facility. The leverage ratio of net debt to Adjusted EBITDA was 3.9 times at the end of Q3 2023.
Capital Spending and Distribution
Sunoco LP (NYSE:SUN) reported total capital expenditures of $45 million for Q3 2023, which included $31 million for growth capital and $14 million for maintenance capital. The Board of Directors declared a distribution for Q3 2023 of $0.8420 per unit, or $3.3680 per unit on an annualized basis, to be paid on November 20, 2023 to common unitholders of record on October 30, 2023.
Looking Forward
Despite the slight decreases in Adjusted EBITDA and Distributable Cash Flow, the significant increase in net income and the increase in fuel sales demonstrate Sunoco LP (NYSE:SUN)'s resilience and potential for growth. The company has also increased its full-year 2023 Adjusted EBITDA guidance to be above $935 million, indicating optimism for the future.
Explore the complete 8-K earnings release (here) from Sunoco LP for further details.
This article first appeared on GuruFocus.
