``Average margins for our refining and chemicals businesses were below break-even levels for the quarter,'' Chairman and Chief Executive John Drosdick said in a statement. “Unscheduled downtime at our Northeast refineries in December also hurt results.”

The company's refining and supply unit lost $16 million in the quarter, compared with earnings of $95 million a year earlier. Sunoco blamed lower margins, especially in its Northeast refining system. Earnings at the retail marketing unit fell to $12 million from $29 million a year earlier due to lower retail gasoline margins. The chemicals unit posted a $4 million loss, compared with income of $2 million in the fourth quarter of 2000, hurt by losses in its polypropylene business. The logistics unit reported net income of $9 million in the fourth quarter, down from $11 million a year earlier.

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