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United Refining Announces Third Fiscal Quarter Results

Net sales up more than 40% from previous year's third quarter
WARREN, Pa. -- United Refining Co., a leading regional refiner and marketer of petroleum products, has reported results for the third fiscal quarter and nine month period ended May 31, 2010. Net sales for the three months ended May 31, 2010 were $705.3 million compared to $498.3 million for the prior-year quarter. This was an increase of $207 million or 41.5% from the prior-year quarter.

Net sales for the nine months ended May 31, 2010 and 2009 were $1.921 billion and $1.704 billion, respectively, which was an increase of $217.4 million or 12.8% from the prior year period. [image-nocss] The increase for the quarter and nine months was primarily attributed to the increase in selling prices of petroleum products, which generally reflected the increase in worldwide petroleum prices from period to period.

Net loss for the three months ended May 31, 2010, was $16.9 million and net income for the three months ended May 31, 2009 was $17.3 million, a decrease in net income of $34.2 million from the prior-year quarter. Net loss for the nine months ended May 31, 2010, was $61.5 million, and for the nine months ended May 31, 2009, net income was $17.3 million, a decrease of $78.8 million in net income from the prior nine-month period.

Earnings before interest, taxes, depreciation and amortization (EBITDA) for the three months ended May 31, 2010 and 2009 were ($6.8) million and $35 million respectively. This was a decrease in EBITDA of $41.8 million from the prior year quarter. EBITDA for the quarter was negatively impacted by the sharp decline in crude oil and product prices over a three week period during the month of May when NYMEX crude fell from $86 to $68 per barrel. Additionally, the quarter was negatively impacted by a scheduled maintenance turnaround which occurred in March.

EBITDA for the nine months ended May 31, 2010 and 2009 was ($53.8) million and $65.6 million respectively, a decrease in EBITDA of $119.4 million from the prior year nine month period.

Warren, Pa.-based United Refining operates a 70,000-barrel-per-day refinery located in Warren. 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.

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