United Refining Sees First Fiscal Quarter 2013 Retail Sales Increases

Offset by decreases in retail volume, merchandise sales

Published in CSP Daily News

WARREN, Pa. -- United Refining Co., a leading regional refiner and marketer of petroleum products, has announced operating results for the first fiscal quarter ended Nov. 30, 2012. Net sales for the quarter increased $13.1 million or 1.4% to $957.1 million from $944 million for the fiscal quarter ended Nov. 30, 2011.

Earnings before interest, taxes, depreciation and amortization (EBITDA) on a FIFO basis for the three months ended Nov. 30, 2012, was $132.8 million, an increase of $7 million from $125.8 million for the three months ended Nov. 30, 2011.

EBITDA on a LIFO basis for the three months ended Nov. 30, 2012, was $114.3 million, a decrease of $7.5 million from $121.8 million for the three months ended Nov. 30, 2011.

Net income for the fiscal quarter ended Nov. 30, 2012 was $59.6 million, a decrease of $2.4 million from net income of $62 million for the first quarter ended Nov. 30, 2011.

Net income and EBITDA includes $2.7 million of noncash losses on derivative contracts in the first-quarter fiscal year 2013 and $51.3 million noncash gains on derivative contracts in the first-quarter fiscal year 2012.

Retail sales increased by $16 million or 3.8% compared to the comparable period in fiscal 2012 from $420.3 million to $436.3 million reflecting increases in petroleum selling prices, offset by slight decreases in retail petroleum volume and merchandise sales.

Wholesale sales decreased during the fiscal quarter by $3 million or 0.6% compared to the comparable prior period from $523.7 million to $520.7 million reflecting a decrease in wholesale volume offset by an increase in wholesale selling prices.

As of Nov. 30, the company's liquidity position included $183.8 million of cash and there were no borrowings against the $175 million Revolving Credit Facility.

Warren, Pa.-based United Refining operates a 70,000-barrels-per-day refinery in Warren, Pa. In addition to its wholesale markets, the company also operates 360 Kwik Fill/Red Apple and Country Fair retail gasoline and convenience stores, as well as more than 30 independently owned locations operated under its Keystone brand, all located primarily in western New York and western Pennsylvania.

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