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    United Refining Q3 Sees Net Loss

    Income drops more than $30 million, despite 41.5 percent rise in net sales.

    WARREN, Pa. -- United Refining Co., a petroleum marketer, refiner and operator of the Kwik Fill/Red Apple and Country Fair convenience store chains, saw a net loss of $16.9 million for the third fiscal quarter ended May 31, 2010, a $34.2 million decrease from the $17.3 million in net income earned in the comparable quarter last year.

    The loss is despite a 41.5-percent rise in net sales, to $705.3 million in the third quarter 2010. The company primarily attributed the gain to the increase in selling prices of petroleum products, which reflected the increase in worldwide petroleum prices from period to period.

    Operating loss for the third quarter 2010 was $11.977 million, compared to operating income of $29.566 million in the prior year period.

    The company's earnings before interest, taxes, depreciation and amortization (EBITDA) for the most recent quarter were a loss of $6.8 million, compared to EBITDA of $35.0 million in the prior year quarter. This figure was negatively impacted by scheduled maintenance, along with the sharp decline in crude oil and product prices over a three-week period in May the prices on the NYMEX fell from $86 to $68 per barrel, according to the company.

    For the nine months ended May 31, 2010, United Refining saw net sales increase 12.8 percent to $1.921 billion. Net loss for the nine months ended May 31, 2010, was $61.5 million, compared to net income of $17.3 million in the comparable time period.

    EBITDA for the nine months ended May 31, 2010, was a loss of $53.8 million, compared to a positive $65.6 million a year ago.

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