Polishing the Apple

Published in CSP Daily News

United Refining announces shiny operating results

WARREN, Pa. Regional refiner-marketer United Refining Co. has announced operating results for the third fiscal quarter and nine month period ended May 31, 2005.

Net sales for the three months ended May 31, 2005, versus May 31, 2004, were $479.5 million and $374.3 million, respectively. This was an increase of $105.2 million or 28.1% over the prior year quarter.

Net sales for the nine months ended May 31, 2005, versus May 31, 2004, were $1.2904 billion and $1.0321 billion, respectively, which was an increase of $258.3 million [image-nocss] or 25% over the prior year period. Increases in net sales for both the quarter and nine months ended May 31, 2005, were due primarily to increases in refined product selling prices attributed to increased worldwide crude oil prices.

Operating income for the three months ended May 31, 2005, was $19 million, or an increase of $5.5 million from operating income of $13.5 million for the quarter ended May 31, 2004. Operating income for the nine months ended May 31, 2005, was $15.6 million, a decrease of $14.7 million from the $30.3 million in operating income for the nine months ended May 31, 2004.

Earnings before interest, taxes, depreciation and amortization (EBITDA) for the three months ended May 31, 2005. increased $5 million to $22.5 million from $17.5 million as of May 31, 2004. EBITDA decreased $14.8 million for the nine months ended May 31, 2005, to $27.3 million from $42.1 million for the nine months ended May 31, 2004.

United operates a 65,000 bpd refinery in Warren, Penn., where it is headquartered. In addition to its wholesale markets, the company also operates 373 Kwik Fill/Red Apple and Country Fair retail gas stations and convenience stores located primarily in western New York and western Pennsylvania.