United Refining's Sales Rise, But Records Net Loss

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United Refining's Sales Rise, But Records Net Loss

12/04/2008
WARREN, Pa. -- United Refining Co., a leading regional refiner and marketer of petroleum products, and operator of Kwik/Fill Red Apple and Country Fair stores, reported net sales for its fiscal year ended Aug. 31, of $3.2 billion, an increase of 33.3 percent from the year prior.

Increases in net sales for the fiscal year were due primarily to a 39-percent increase in wholesale gasoline prices and a corresponding 32-percent increase in retail selling prices. Also contributing to the increase in net sales was an $11.8 million increase in retail merchandise sales.

However, gross profit for the year ended Aug. 31, was $108.9 million, a decrease of $210.4 million from $319.3 million the year before. The company’s gross profit was hurt by gasoline and asphalt margin erosion, the company said.

Earnings before interest, taxes, depreciation and amortization (EBITDA) including year-end inventory adjustments of $90.1 million, was a net loss of $25.5 million compared to earnings of $191.7 million for the prior year.

United Refining operates a 70,000 barrel per day refinery in Warren, Pa. In addition to its wholesale markets, the company operates 369 Kwik Fill/Red Apple and Country Fair convenience stores, located primarily in western New York and western Pennsylvania.