United Refining Sees Improvement

Second-quarter income up $25.6 million from previous year's period

Published in CSP Daily News

WARREN, Pa. -- United Refining Co., a leading regional refiner and marketer of petroleum products has announced improved operating results for the second fiscal quarter and six-month period ended February 28, 2011.

Net income for the second quarter ended February 28, 2011, increased $25.6 million to net income of $300,000, from a net loss of $25.3 million for the quarter ended February 28, 2010.

Net loss for the six months ended February 28, 2011, improved $36.8 million to a net loss of $7.8 million, from a net loss of $44.7 million for the six months ended February 28, 2010.[image-nocss]

Adjusted earnings before interest, taxes, depreciation and amortization (which is EBITDA calculated on a FIFO basis before the LIFO inventory adjustment), for the three months ended February 28, 2011, increased $43.2 million to $28.5 million, compared to a loss of $14.6 million for the three months ended February 28, 2010. Adjusted EBITDA increased $45.4 million for the six months ended February 28, 2011 to $31.2 million from a loss of $14.3 million for the six months ended February 28, 2010.

Net sales for the three months ended February 28, 2011 and 2010 were $692.3 million and $594.7 million, respectively. This was an increase of $97.6 million or 16.4% over the prior year period. Retail petroleum sales volume and merchandise sales dollars both continued to increase on a comparable quarter basis resulting in 21 consecutive comparable quarter increases.

Net sales for the six months ended February 28, 2011 and 2010 were $1.31 billion and $1.22 billion, respectively. This was an increase of $95.7 million or 7.9% over the prior year period.

Operating income for the second quarter ended February 28, 2011, increased $44.3 million to operating income of $10.3 million, from an operating loss of $34 million for the quarter ended February 28, 2010.

Operating income for the six months ended February 28, 2011, increased $64.9 million to operating income of $7.2 million, from an operating loss of $57.7 million for the six months ended February 28, 2010.

United Refining operates a 70,000-barrel-per-day refinery in Warren, Pa., where it is headquartered. In addition to its wholesale markets, the company also operates 367 Kwik Fill/Red Apple and Country Fair retail gasoline and convenience stores located primarily in western New York and western Pennsylvania.