Sunoco LP (NYSE: SUN) recently announced operational reports for the second quarter of 2021. The partnership reported a net income of $166 million compared to $157 million in the same period last year.
Second-quarter financial summary
Adjusted EBITDA was $201 million in the second quarter was $201 million, an increase from the $ 182 million in the first three months of 2020. This increase is a reflection of higher reported fuel volume and non-motor fuel gross profit, sprang by slightly higher operating expenses and lower fuel margins.
The partnership’s distributable cash flow adjusted for the three months was $145 million, up from $122 million in a similar period last year.
Sunoco sold 1.9 billion gallons of fuel in 2Q2021. These volumes represent a 28% increase from a similar period in 2020 and a 6% decline from 2Q2019. The fuel margin for each gallon sold in 2Q2020 was 11.3 cents per gallon, down from 13.5 cents per gallon in2Q2020.
In July, the board of directors of Sunoco’s general partner declared $0.8255 per unit as the distribution for the second quarter. The distribution will be paid on August 19, 2021, to common unitholders of record on August 6, 2021. The company’s current quarter cash average was 1.67 times while the twelve months average was 1.41 times.
By June 30, 2021, the company’s borrowing against its revolving credit facility was $361 million, and other long-term debt amounted to $2.7 billion. In addition, SUN maintained abundant liquidity of an estimated $1.1 billion at the end of the second quarter under its $1.5 billion revolving credit facility that is expected to mature in two years. As a result, the partnership’s leverage ratio of debt and Adjusted EBITDA under its credit facility was 4.27 times at the end of 2Q2021.
Full-year expectations
The partnership’s total capital expenditures for 2Q2021 were $30 million, including $7 million for maintenance capital and $23 million in growth capital. It continues to expect growth capital expenditures of %=$150 million and $45 million in maintenance capital expenditures for the full year 2021.
