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United Refining Company Announces Third Fiscal Quarter 2014 Results

July 17, 2014



ENP Newswire - 17 July 2014

Release date- 16072014 - Warren, PA. - United Refining Company, a leading regional refiner and marketer of petroleum products announces operating results for the third fiscal quarter and nine month period and ended May 31, 2014.

During the third fiscal quarter ended May 31, 2014, a scheduled maintenance turnaround was successfully completed. The turnaround was for approximately 33 days. This affected refinery production, sales and profits for the third quarter. Crude throughput for the quarter averaged 39,700 barrels per day (bpd) versus crude throughput averaging 61,900 bpd for the same period a year ago.

Net income for the third fiscal quarter ended May 31, 2014 was $3.2 million, a decrease of $41.4 million from a net income of $44.6 million for the third quarter ended May 31, 2013. Net income for the nine months ended May 31, 2014 was $59.8 million, a decrease of $108.0 million from net income of $167.8 million for the nine months ended May 31, 2013.

Earnings before interest, taxes, depreciation and amortization (EBITDA)1on a FIFO basis for the three months ended May 31, 2014 was $55.1 million, a decrease of $50.6 million from $105.7 million for the three months ended May 31, 2013. EBITDA on a FIFO basis for the nine months ended May 31, 2014 was $124.6 million, a decrease of $201.7 million from $326.3 million for the nine months ended May 31, 2013.

EBITDA on a LIFO basis for the three months ended May 31, 2014 was $19.5 million, a decrease of $70.5 million from $90.0 million for the three months ended May 31, 2013. This decrease is primarily attributable to the effect of a $35.6 million LIFO charge in the May 2014 quarter and a $15.7 million LIFO charge in the May 2013 quarter. EBITDA on a LIFO basis for the nine months ended May 31, 2014 was $140.3 million, a decrease of $185.2 million from $325.5 million for the nine months ended May 31, 2013.

Net sales for the fiscal quarter ended May 31, 2014 decreased $99.2 million, or 11.2%, to $784.3 million from $883.5 million for the quarter ended May 31, 2013. Net sales for the nine months ended May 31, 2014 decreased $261.0 million, or 9.6%, to $2,449.7 million from $2,710.7 million for the nine months ended May 31, 2013.

As of May 31, 2014, the Company's liquidity position included $46.0 million of cash and cash equivalents and there were no borrowings against the $175.0 million Revolving Credit Facility.

United operates a 70,000 bpd refinery in Warren, Pennsylvania. In addition to its wholesale markets, the Company also operates 359 Kwik Fill / Red Apple and Country Fair retail gasoline and convenience stores located primarily in western New York and western Pennsylvania.

Certain statements contained in this release are forward looking, such as statements regarding the Company's plans and strategies or future financial performance. Although the Company believes that its expectations are based on reasonable assumptions within the bounds of its knowledge, investors and prospective investors are cautioned that such statements are only projections and that actual events or results may differ materially from those expressed in any such forward-looking statements.

In addition, the Company's actual consolidated quarterly or annual operating results have been affected in the past, or could be affected in the future, by additional factors, including, without limitation, general economic, business and market conditions; environmental, tax and tobacco legislation or regulation; volatility of gasoline prices, margins and supplies; merchandising margins; customer traffic, weather conditions; labor costs and the level of capital expenditures.

Contact:

United Refining Company

John A. Catsimatidis

Chairman and CEO

Tel: (212) 956-5803

James E. Murphy

Chief Financial Officer

Tel: (814) 723-1500


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Source: ENP Newswire


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