Sunoco (NYSE:SUN) is set to report its earnings on Feb 5. Sunoco has remained in news for quite a lot of activities this quarter and has passed through several challenges too. The management has taken several initiatives in order to face the bleak economic situation and much more remains to maintain its balancing act. Just yesterday, S&P cut the company’s rating from BBB/Negative/A-3 from BBB/Stable/A-2.  S&P noted concerns that refining margins will remain weak in 2009 and possibly well beyond. Sunoco's limited ability to process disadvantaged crudes, its geographic concentration in the highly competitive PADD I region, and its significant near-term regulatory and required capital expenditures place the company at a relative disadvantage, the analyst commented.

In mid-January, the company decided to permanently close its polypropylene manufacturing facility located in Bayport, Texas. “The decision to close the facility was made after an extensive review which demonstrated that the plant is no longer financially viable,” said Bruce D. Rubin, Vice President of Sunoco Chemicals. Sunoco expects to record a non-cash after tax charge in the fourth quarter of 2008 totaling approximately $35 million in connection with the decision to close the facility.

In December, the company announced a slew of cost cutting measures which included a decision to shutter a refinery in Tulsa, Oklahoma - which has been on the block for more than a year - would be converted to a terminal if a buyer isn't found by the end of 2009. The 85,000 barrel per day refinery is currently operating under waivers as it is unable to make products that meet current environmental standards, such as low sulfur fuels, market sources said. The company has also lined up some job cuts along with “lifestyle” items such as corporate would take a beating too, indicated the management of the company. They are also considering selling its chemicals business and plans to reduce capital spending by more than $300 million in 2010 to $545 million, compared with $890 million in 2008.

Marking some insider trading in the company it was noted that the outgoing Chairman John Drosdick decided to pare down his stake in the company, selling 86,100 shares for $3.4Mn. Drosdick, 65, retired as president and chief executive officer of the oil refiner and marketer in August but agreed to continue on as chairman through the end of 2008.

In late January, the company announced that Dennis Zeleny has joined the company as Senior Vice President and Chief Human Resources Officer.

The market awaits full blown discussion by the management’s path ahead. The market is quite upbeat on the company’s subsidiary Sunoco Logistics which reported robust third-quarter results, reflecting growth in all its segments.