Financial Performance
We view the diversity of our portfolio as a key strength of the company. We are committed to improving our performance and enhancing shareholder value while at the same time maintaining our financial strength and flexibility by striving to:

• Increase reliability and realizing additional operational improvements from existing assets;
• Efficiently manage capital spending to minimize outlays during periods of weak profitability;
• Divest assets that do not meet our return-on-investment criteria;
• Grow, upgrade, and diversify our asset base through strategic acquisitions and investments;
• Reduce expenses; and
• Return cash to our shareholders through the payment of cash dividends.

At the end of a year of significant turbulence, Sunoco’s financial position remains strong.

2008 Financial Highlights
The volatility of the refining market was clearly evident in 2008. Our Refining & Supply business earned $515 million, demonstrating the improved flexibility of our refinery operations and commercial activities.

Our non-refining businesses contributed a record $427 million to the bottom line.

Highlights for 2008 include:

• Income before special items* was $874 million;
• Earnings per share before special items amounted to $7.46, up 7.5% from 2007; and
• Dividend was Increased to $.30 per share ($1.20 per year) beginning in the second quarter of 2008.

Sunoco also:

• Significantly reduced its crude oil acquisition costs compared to market benchmarks by expanding its ability to process lower-cost crude oil feedstocks;
• Optimized refinery operations to produce a mix of products that better reflected market demand;
• Earned a record $201 million in Retail Marketing reflecting retail margin expansion in the second half of the year;
• Benefitted from a record contribution from Sunoco Logistics Partners L.P., which continued to effectively execute its growth strategy; and
• Earned a record $105 million at SunCoke Energy. During 2008, our coke business began operations at a second cokemaking facility in Haverhill, OH and began construction on a new facility in Granite City, IL that is expected to be completed in 2009.

* Net income amounted to $776 million for 2008 and $891 million for 2007, which includes a net charge for special items of $98 million for 2008 and a net gain for special items of $58 million for 2007.

Stock Price Performance
Year–End	Price Per Share
2004	$40.86
2005	$78.38
2006	$62.36
2007	$72.44
2008	$43.46