WARREN, Pa. -- United Refining Co., a leading regional refiner and marketer of petroleum products, has reported results for the company's fiscal year ended August 31, 2010. Net sales for the year ended August 31, 2010, and August 31, 2009, were $2.7 billion and $2.4 billion, respectively, an increase of $0.3 billion.
Increases in net sales for the year ended August 31, 2010, were due primarily to a 10.4% increase in wholesale prices, a 12.1% increase in retail prices, a three-million-gallon increase in retail petroleum volume, and a $19.5-million increase in merchandise [image-nocss] sales.
Reflecting an industry-wide tightening of profit margins at East Coast (PADD 1) refineries, operating income for the year ended August 31, 2010, was $(78.1) million, a decrease of $169.6 million from $91.5 million for the year ended August 31, 2009. The operating income of the company was negatively impacted by among other factors, the increased cost of purchased crude oil driven by a 19.1% increase in NYMEX crude prices for fiscal 2010 compared to fiscal 2009, and lower retail petroleum margins.Earnings before interest, taxes, depreciation and amortization (EBITDA) for the fiscal year ended August 31, 2010, were $(56.7) million, a decrease of $170.8 million from $114.1 million for the year ended August 31, 2009.
United operates a 70,000-bpd refinery in Warren, Pa. In addition to its wholesale markets, the company also operates 366 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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