U.S. Refined Fuels Distribution
U.S. refined fuels distribution gross profit for the fourth quarter was $37.3 million, a decrease of $0.6 million from the prior year quarter. The decrease in gross profit is due to lower sales volumes offset in part by slightly higher gross margins. Sales volumes of 428 million litres, decreased by 12 million litres or 3% from the prior year quarter. The decrease was primarily due to higher in-tank customer volumes due to the unseasonably warm weather experienced during the majority of 2012 which has negatively impacted the timing of residential customers first tank fill of the heating season, lower customer aggregation and competitive pressures. Weather as measured by heating degree days for the fourth quarter was 9% higher than the prior year quarter although lower year to date degree days reduced the impact of the colder weather. Average U.S. refined fuels sales margins of 8.7 cents per litre increased slightly from 8.6 cents per litre in the prior year quarter. Sales margins were positively impacted by reduced cost for propane supply, and a higher contribution from residential propane sales volumes, which was offset by a higher proportion of lower margin automotive volumes and higher distillate supply costs.
U.S. Refined Fuels Distribution Sales Volumes
Volumes by End-Use Application(1) Volumes by Region (2)---------------------------------------------------------------------------- Three months ended December 31, Three months ended December 31,(millions of (millions oflitres) 2012 2011 litres) 2012 2011----------------------------------------------------------------------------Residential Northeast 88 90 United States 428 440Commercial 200 218Automotive 140 131---------------------------------------------------------------------------- 428 440 428 440--------------------------------------------------------------------------------------------------------------------------------------------------------Volumes by End-Use Application(1) Volumes by Region (2)---------------------------------------------------------------------------- Twelve months ended December 31, Twelve months ended December 31,(millions of (millions oflitres) 2012 2011 litres) 2012 2011----------------------------------------------------------------------------Residential Northeast 274 336 United States 1,599 1,741Commercial 764 892Automotive 561 513---------------------------------------------------------------------------- 1,599 1,741 1,599 1,741--------------------------------------------------------------------------------------------------------------------------------------------------------(1) Volume: Volume of heating oil, propane, diesel and gasoline sold (millions of litres).(2) Regions: Northeast United States region consists of Pennsylvania, Connecticut, New York, and Rhode Island.
Other Services
Other services gross profit was $11.4 million in the fourth quarter, a decrease of $1.5 million from the prior year quarter due to reduced service calls and active customer service contracts.
