The Company’s refining and marketing operations generated income from continuing operations of $80.5 million in the second quarter 2012 compared to $60.1 million in the same quarter of 2011. The R&M earnings improvement in the 2012 second quarter occurred primarily in the United Kingdom, where the quarterly profit was $7.2 million in 2012 compared to a quarterly loss of $15.8 million in 2011.
U.S. income of $73.3 million in the 2012 quarter was slightly below the 2011 quarterly income of $75.9 million, primarily due to weaker results for ethanol production facilities in the current period. The ethanol production facilities incurred losses in the 2012 quarter resulting from lower margins as the average sales prices for ethanol fell more than the average decline in the price of corn compared to the second quarter of 2011. U.S. retail marketing margins averaged $0.197 per gallon in the 2012 quarter compared to $0.199 per gallon in 2011. Fuel sales volume per store in the 2012 quarter was 2.6% below 2011 levels, while merchandise sales per store were down 1.9% in the 2012 quarter compared to the prior year.
The favorable result in the U.K. in 2012 compared to 2011 was primarily due to improved refining margins at the Milford Haven, Wales refinery. In addition, marketing operations had better average product margins in the 2012 quarter. Total U.K. unit margins averaged a positive $1.26 per barrel in the 2012 quarter, compared to a negative margin of $1.76 per barrel a year ago. Milford Haven processed 130,059 barrels of crude oil per day in the 2012 quarter, down from a record quarterly crude oil throughput volume of 136,428 barrels per day during the 2011 quarter.
|Three Mos. Ended||Six Mos. Ended|
|June 30||June 30|
|U.S. Retail Fuel Margin – Per gallon||$||0.197||0.199||0.137||0.146|
|U.S. Retail Merchandise Sales – Per store month||$||158,626||161,722||155,783||155,072|
|U.K. Refinery Inputs – Bbls. per day||133,158||139,886||131,954||132,468|
|U.K. R&M Unit Margin – Per Bbl.||$||1.26||(1.76||)||1.03||(1.22||)|
|Total Petroleum Product Sales – Bbls. per day*||483,561||601,498||467,049||583,019|
*Includes 166,249 bbls. per day in the 2011 three-month period and 160,032 bbls. per day in the 2011 six-month period related to discontinued operations.
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