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United Refining Reports 1Q Loss

WARREN, Pa. -- United Refining Co., a leading regional refiner and marketer of petroleum products, and operator of the Kwik Fill, Red Apple and Country Fair c-store chains, reported net sales for the first fiscal quarter ended Nov. 30, 2009, declined 19.4 percent to $620.9 million.

The company attributed the decline in sales primarily to decreases in retail and wholesale selling prices of petroleum products, reflecting the worldwide drop in petroleum prices during this period.

Operating loss for the period was $23.7 million, a decrease of $38.7 million from operating income of $15 million in the year-ago quarter. Again, the loss was pinned on declining prices for crude and petroleum products which resulted in reduced crack spreads throughout the refining sector.

The net loss for the quarter was $19.3 million, a decline from a net profit of $3.1 million in 2008's first quarter.
United did note the company's liquidity remains strong. As of Nov. 30, 2009, United's working capital was $209.5 million and the current ratio was 2.8. At Nov. 30, there was $113.6 million unused availability on its bank revolving credit facility.

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