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Energy Services
Energy Services' condensed operating results for 2013 and 2012;
---------------------------------------------------------------------------- Three months ended March 31,(millions of dollars) 2013 2012 (2)----------------------------------------------------------------------------Revenue(1) 719.7 747.6Cost of sales(1) (566.2) (604.9)----------------------------------------------------------------------------Gross profit 153.5 142.7Less: Cash operating and administrative costs(1) (85.9) (84.6)----------------------------------------------------------------------------EBITDA from operations 67.6 58.1--------------------------------------------------------------------------------------------------------------------------------------------------------(1) In order to better reflect the results of its operations, Superior has reclassified certain amounts for purposes of this MD&A to present its results as if it had accounted for various transactions as accounting hedges. See "Reconciliation of Divisional Segmented Revenue, Cost of Sales and Cash Operating and Administrative Costs Included in this MD&A" for detailed amounts.(2) The prior year quarter has been restated for the impact of adopting IAS 19 Employee Benefits on January 1, 2013. The prior year quarter cash operating and administrative costs were increased by $0.3 million due to the accounting standard change.
Revenues for the first quarter of 2013 were $719.7 million, a decrease of $27.9 million from revenues of $747.6 million in 2012. The decrease in revenues is primarily due to lower commodity prices offset in part by higher sales volumes as compared to the prior year quarter. Total gross profit for the first quarter of 2013 was $153.5 million, an increase of $10.8 million or 8% over the prior year quarter. The increase in gross profit was primarily due to higher Canadian propane distribution and U.S. refined fuels distribution gross profits due to higher gross margins and sale volumes. A summary and detailed review of gross profit is provided below.
Gross Profit Detail
---------------------------------------------------------------------------- Three months ended March 31,(millions of dollars) 2013 2012----------------------------------------------------------------------------Canadian propane distribution 77.1 72.8U.S. refined fuels distribution 52.9 45.7Other services 10.9 10.5Supply portfolio management 7.9 6.2Fixed-price energy services 4.7 7.5----------------------------------------------------------------------------Total gross profit 153.5 142.7--------------------------------------------------------------------------------------------------------------------------------------------------------
