United Refining Company announces third quarter results

United Refining Company has announced operating results for the third fiscal quarter and nine month period ended 31 May 2015. United operates a 70 000 bpd refinery in Warren, Pennsylvania. In addition to its wholesale markets, the company also operates 357 Kwik Fill^®/Red Apple^® and Country Fair^® retail gasoline and convenience stores, located primarily in western New York and western Pennsylvania.

Net income for the third fiscal quarter ended 31 May 2015 was US$34.7 million, an increase of US$31.5 million from net income of US$3.2 million for the same period a year earlier. Net income for the nine months ended 31 May 2015 was US$53.9 million, a decrease of US$5.9 million from net income of US$59.8 million for the nine months ended 31 May 2014.

Earnings before interest, taxes, depreciation and amortisation (EBITDA)1 on a FIFO basis for the third quarter was US$73.7 million, an increase of US$18.6 million from US$55.1 million for the three months ended 31 May 2014. EBITDA on a FIFO basis for the nine months ended 31 May 2015 was US$29.1 million, a decrease of US$95.5 million from US$124.6 million for the nine months ended 31 May 2014.

EBITDA on a LIFO basis for the third quarter was US$74.3 million, an increase of US$54.8 million from US$19.5 million for the three months ended 31 May 2014. EBITDA on a LIFO basis for the nine months ended 31 May 2015 was US$140.7 million, an increase of US$0.4 million from $140.3 million for the nine months ended 31 May 2014.

Net sales for the third quarter decreased US$181.4 million, or 23.1%, to US$602.9 million from US$784.3 million for the same period a year earlier. Net sales for the nine months ended 31 May 2015 decreased US$441.2 million, or 18.0%, to US$2,008.5 million from US$2,449.7 million for the nine months ended 31 May 2014. Net sales decreased for the three month and nine month periods ended 31 May 2015, primarily due to a decrease in selling prices of 35% and 24% for each period, respectively.

As of 31 May 2015, the company's liquidity position included US$146.3 million of cash and cash equivalents and there were no borrowings against the US$175.0 million Revolving Credit Facility.

Adapted from press release by Rosalie Starling

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