WARREN, Pa. -- Regional refiner and marketer United Refining Co. has announced operating results for the second fiscal quarter and six-month period ended Feb. 28, 2007. Operating income for the second quarter increased $5.4 million from a loss of $100,000 for the quarter ended Feb. 28, 2006, to income of $5.3 million. Operating income for the six months decreased $11.9 million from income of $17.3 million for the six months ended Feb. 28, 2006 to operating income of $5.4 million for the previous year's six-month period.
Net sales for the three months [image-nocss] ended Feb. 28, 2007, and Feb. 28, 2006, were $492.8 million and $506.5 million, respectively. This was a decrease of $13.7 million or 2.7% over the prior-year period. Retail merchandise sales increased $2.5 million and retail petroleum sales increased $11.9 million for the period, primarily due to increased sales volume. Wholesale sales volumes declined $28 million; however, they would have increased during the second fiscal quarter had these volumes not been used to build inventories for our scheduled maintenance turnaround, thereby deferring sales to the third fiscal quarter.
Earnings before interest, taxes, depreciation and amortization (EBITDA) for the current period increased $5 million to $9.2 million compared to $4.2 million for the same quarter from 2006. EBITDA decreased $13.1 million for the six months ended Feb. 28, 2007, to $14.2 million from $27.3 million for the six months ended Feb. 28, 2007. This decrease was primarily related to the precipitous fall in NYMEX crude oil pricing during the first fiscal quarter, the company said.
Crude oil declined more than $21 per barrel during the first quarter from a high of $76.98 per barrel in August to a low of $55.81 per barrel in November.
United operates a 65,000 barrels-per-day (bpd) refinery in its home base of Warren, Pa. In addition to its wholesale markets, the company also operates 371 Kwik Fill/Red Apple and Country Fair retail gasoline and convenience stores located primarily in western New York and western Pennsylvania.
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