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United Refining Company releases end of fiscal year 2015 report

Hydrocarbon Engineering,

United Refining Company (URC), a leading regional refiner and marketer of petroleum products announces results for the company's fiscal year ending 31 August 2015.

Net income for the fiscal year was US$82.1 million. This is an increase of US$11.0 million from net income of US$71.1 million for the year ended 31 August 2014.

Earnings before interest, income taxes, depreciation and amortisation (EBITDA1) was US$197.1 million for the fiscal year ending 31 August 2015, an increase of US$22.5 million from US$174.6 million from the fiscal year ending 31 August 2014. Adjusted EBITDA on a FIFO basis during fiscal years 2015 and 2014 was US$93.6 million and US$175.4 million, respectively.

Net sales for the fiscal year ended 31 August 2015 were US$2,716.7 million, a decrease of US$722.5 million from US$3439.2 million for 2014. The decrease in company sales was primarily attributed to a drop in NYMEX crude oil prices, which averaged US$101.05 /bbl for fiscal 2014 versus US$64.93 /bbl for fiscal 2015. This 36% decrease per bbl was also reflected in a decrease in wholesale and retail selling prices.

On 20 October 2015, URC consummated a new 5 year US$475 million credit facility consisting of a US$250 million term loan and a US$225 million revolving credit facility. The proceeds from the revolving credit facility will be used for working capital needs and general corporate purposes. The proceeds of the term loan, along with cash balances, were used to finance URC's redemption of any and all of its US$237.5 million aggregate principal amount of outstanding 10.5% First Priority Senior Secured Notes due 2018. Interest on the term loan is at libor plus an applicable margin and is expected to save the company approximately US$17 million/y in interest expense at current interest rates.

Adapted from press release by Francesca Brindle

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