United Refining Announces Record 3Q Sales

Net sales increased by double-digits in quarter, nine-month period

Published in CSP Daily News

WARREN, Pa. -- United Refining Co., a major regional refiner and marketer of petroleum products, has announced results for the third fiscal quarter and nine-month period ended May 31, 2011. United announced record third-quarter sales of $808.1 million, which resulted in adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $73.6 million for the fiscal quarter ended May 31, 2011.

Adjusted EBITDA for the three months ended May 31, 2011, and 2010, were $73.6 million and a loss of $5.3 million, respectively. This was an increase in adjusted EBITDA [image-nocss] of $78.9 million from the prior year quarter. Adjusted EBITDA for the nine months ended May 31, 2011, and 2010, was $105.3 million and a loss of $22.2 million, respectively, an increase in adjusted EBITDA of $127.5 million from the prior-year nine-month period.

The increase for the quarter and nine months was primarily attributed to robust refining crackspreads.

After recording a $40.9 million LIFO inventory adjustment for the quarter, EBITDA was $32.7 million and a loss of $6.8 for the quarters ended May 31, 2011, and 2010, respectively, an increase for quarter on quarter of $39.5 million. For the nine months ended May 31, 2011, and 2010, respectively, EBITDA was $49.8 million and loss of $53.8 million, an improvement of $103.6 million.

Net sales for the three months ended May 31, 2011, were $808.1 million compared to $705.3 million for the prior-year quarter. This was an increase of $102.8 million or 14.6% from the prior year quarter. Net sales for the nine months ended May 31, 2011, and 2010, were $2,119.5 million and $1.921 billion, respectively, which was an increase of $198.5 million or 10.3% from the prior-year period.

Net income attributed to United Refining Co.'s stockholder for the three months ended May 31, 2011, was $9.1 million as compared to a net loss of $16.9 million for the three months ended May 31, 2010; which was an increase in net income of $26 million from the prior-year quarter.

Net income attributed to United Refining Co.'s stockholder for the nine months ended May 31, 2011, was $1.3 million versus a net loss of $61.5 million for the nine months ended May 31, 2010, an increase of $62.8 million in net income from the prior nine-month period.

Warren, Pa.-based United operates a 70,000-barrels-per day (bpd) refinery in Warren. In addition to its wholesale markets, the company operates 366 Kwik Fill/Red Apple and Country Fair retail gasoline and convenience stores located primarily in western New York and western Pennsylvania.