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Superior Plus Corp
Symbol SPB
Shares Issued 126,676,145
Close 2015-07-30 C$ 10.93
Market Cap C$ 1,384,570,265
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ORIGINAL: Superior Plus Corp. Confirms 2015 Second Quarter Results

2015-07-30 13:58 ET - News Release

CALGARY, ALBERTA -- (Marketwired) -- 07/30/15

Superior Plus Corp. (TSX:SPB)

Highlights


--  For the quarter ended June 30, 2015, Superior generated adjusted
    operating cash flow (AOCF) per share of $0.18 compared to the prior year
    quarter of $0.26 per share before restructuring costs and $0.18 per
    share after restructuring costs. Second quarter results are consistent
    with the preliminary second quarter results issued on July 23, 2015.
    Superior does not anticipate any restructuring costs in 2015. 
--  As previously communicated on July 23, 2015, Superior's 2015 financial
    outlook of AOCF per share has been reduced to $1.65 to $1.85 from $1.80
    to $2.10 per share as provided in the first quarter of 2015. The
    reduction in the 2015 financial outlook is due to a reduced outlook for
    the Specialty Chemicals business for the second half of 2015 in addition
    to lower than expected results for the second quarter of 2015. See the
    financial outlook section of the Specialty Chemicals review and "2015
    Financial Outlook" for additional details on the reduction in the 2015
    financial outlook. 
--  Superior's total debt to EBITDA at June 30, 2015 was 3.4X. Superior's
    forecasted December 31, 2015 total debt to EBITDA ratio is 3.4X to 3.8X,
    compared to the range of 3.0X to 3.4X provided in the first quarter of
    2015. The increase in the forecasted range is a result of the reduced
    financial outlook for 2015 as noted above. See "Debt Management Update"
    for additional details. 
--  Energy Services results for the second quarter were consistent with the
    prior year quarter and management's expectations as improved gross
    profits were offset by higher operating costs, both of which were
    impacted by a stronger U.S. dollar on the translation of U.S.
    denominated gross profits and expenses. Retail propane and heating oil
    gross profits benefited from a lower wholesale cost of propane and
    heating oil in the current year quarter compared to the prior year
    quarter. In addition, results in the prior year quarter benefitted from
    the recognition of a $3.7 million one-time insurance and litigation
    settlement. Business improvement and cost reduction initiatives
    throughout the Energy Services business continue to track consistent
    with management's expectations. 
--  Specialty Chemicals results for the second quarter were lower than the
    prior year quarter and below management's expectations. Sodium chlorate
    gross profits were lower than the prior year quarter as a result of
    reduced sales volumes and higher average electricity costs. Sales
    volumes were negatively impacted by higher than average customer
    maintenance in the second quarter and a reduction in the nomination of
    volume under the Tronox LLC (Tronox) supply agreement. Chloralkali gross
    profits were lower than the prior year quarter due primarily to reduced
    hydrochloric acid pricing. 
--  The Construction Products Distribution ("CPD") business results were
    higher than the prior year quarter and consistent with management's
    expectations. Second quarter results were impacted by ongoing volume and
    margin improvements in U.S. markets, the impact of a stronger U.S.
    dollar and modestly higher Canadian results. 

                                                                            
Second Quarter Financial Summary                                            
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                                     Three months ended    Six months ended 
                                                June 30             June 30 
(millions of dollars except per                                             
 share amounts)                          2015      2014      2015      2014 
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Revenue                                 743.9     895.4   1,750.5   2,177.7 
Gross profit                            192.8     196.0     482.5     486.2 
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EBITDA from operations (1)(2)            37.2      50.6     155.0     166.4 
Interest expense                        (11.1)    (11.6)    (25.4)    (24.5)
Corporate costs                          (2.2)     (6.0)     (9.8)    (10.8)
Cash income tax expense                  (0.6)     (0.5)     (1.3)     (0.9)
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Adjusted operating cash flow before                                         
 restructuring costs                     23.3      32.5     118.5     130.2 
Restructuring costs                         -      (9.3)        -     (11.1)
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Adjusted operating cash flow             23.3      23.2     118.5     119.1 
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Adjusted operating cash flow per                                            
 share before restructuring costs,                                          
 basic (1)(2)(3)(4)                     $0.18     $0.26     $0.94     $1.03 
Adjusted operating cash flow per                                            
 share before restructuring costs,                                          
 diluted (1)(2)(3)(4)                   $0.18     $0.26     $0.91     $1.00 
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Adjusted operating cash flow per                                            
 share, basic (1)(2)(3)(4)              $0.18     $0.18     $0.94     $0.94 
Adjusted operating cash flow per                                            
 share, diluted (1)(2)(3)(4)            $0.18     $0.18     $0.91     $0.92 
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Dividends paid per share                $0.18     $0.15     $0.36     $0.30 
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(1) EBITDA from operations and adjusted operating cash flow are key         
    performance measures used by management to evaluate the performance of  
    Superior. These measures are defined under "Non-GAAP Financial Measures"
    in Superior's 2015 second quarter Management's Discussion and Analysis  
    (MD&A).                                                                 
(2) Superior has reclassified its 2014 second quarter results for the impact
    of accounting adjustments as disclosed in Superior's 2014 third quarter 
    earnings release dated October 30, 2014. The impact of the adjustment   
    results in an increase in 2014 second quarter EBITDA from operations for
    the Energy Services segment of $0.7 million ($17.9 million on a total   
    basis compared to the previously reported $17.2 million). There is no   
    impact on operating cash flow per share of $0.18 for the comparative    
    quarter period. See Superior's 2015 second quarter MD&A for additional  
    details.                                                                
(3) The weighted average number of shares outstanding for the three months  
    ended June 30, 2015 is 126.7 million (2014 - 126.2 million) and for the 
    six months ended June 30, 2015 is 126.4 million (2014 - 126.2 million). 
(4) See "Supplemental Financial Information" for additional details on      
    diluted per share amounts.                                              
                                                                            
Segmented Information                                                       
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                                      Three months ended    Six months ended
                                                 June 30             June 30
(millions of dollars)                     2015      2014      2015      2014
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EBITDA from operations:                                                     
  Energy Services                         14.5      17.9      97.8      99.6
  Specialty Chemicals                     10.0      24.7      40.5      54.3
  Construction Products Distribution      12.7       8.0      16.7      12.5
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                                          37.2      50.6     155.0     166.4
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Comparable GAAP Financial Information (1)                                   
----------------------------------------------------------------------------
                                     Three months ended     Six months ended
                                                June 30              June 30
(millions of dollars except per                                             
 share amounts)                           2015     2014       2015      2014
----------------------------------------------------------------------------
Net earnings                              40.9      5.9       31.1      56.0
Net earnings per share basic             $0.32    $0.05      $0.25     $0.44
Net earnings (loss) per share                                               
 diluted                                 $0.25   $(0.02)     $0.24     $0.44
Net cash flows from operating                                               
 activities                               68.1    121.5      200.0     172.6
Net cash flows from operating                                               
 activities per share basic              $0.54    $0.96      $1.58     $1.37
Net cash flows from operating                                               
 activities per share diluted            $0.53    $0.93      $1.53     $1.32
----------------------------------------------------------------------------
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(1) See "Non-GAAP Financial Measures" in Superior's 2015 second quarter MD&A
    for additional details.                                                 

Energy Services


--  EBITDA from operations for the second quarter was $14.5 million compared
    to $17.9 million in the prior year quarter. Results were consistent with
    the prior year after normalizing the prior year quarter results which
    included a one-time litigation and insurance settlement of $3.7 million.
    Results in the current year quarter benefited from lower operating costs
    and higher average retail margins which more than offset reduced sales
    volumes. 
--  The Canadian propane business generated gross profit of $47.7 million in
    the second quarter compared to $47.5 million in the prior year quarter,
    as higher average sales margins, were offset by a reduction in sales
    volumes. 
--  Canadian propane average sales margins were 20.9 cents per litre in the
    second quarter compared to 18.6 cents per litre in the prior year
    quarter. Average sales margins in the second quarter of 2015 benefitted
    from a low price environment for the wholesale cost of propane, improved
    sales mix and the impact of ongoing pricing management initiatives. The
    low wholesale cost of propane is due largely to the reduced price of
    crude oil as compared to the prior year period and higher than
    historical propane inventory levels. Historically, a low price
    environment is conducive to higher margins. Superior anticipates that
    propane margins will moderate throughout the second half of 2015 as the
    spread between retail pricing and the wholesale cost of propane
    normalize. 
--  Canadian propane distribution sales volumes were 11% lower than the
    prior year quarter due primarily to reduced industrial and commercial
    sales volumes. Industrial sales volumes were impacted by weaker oil
    field sales volumes due to reduced customer activity as a result of the
    decline in crude oil prices. Commercial sales volumes were negatively
    impacted by warmer than average temperatures relative to the prior year
    quarter. Residential, agricultural and automotive sales volumes were
    consistent with the prior. 
--  Average weather across Canada, as measured by degree days, for the
    second quarter was 12% warmer than the prior year and 8% warmer than the
    5-year average. Due to the seasonal nature of heating related volumes,
    weather in the second quarter does not typically have a material impact
    on the majority of end-use sales volumes. 
--  The U.S. refined fuels business generated gross profits of $30.7 million
    in the second quarter compared to $26.4 million in the prior year
    quarter. Gross profits benefited from improved average sales margins
    offset by modestly lower sales volumes. 
--  U.S. refined fuels average sales margin of 9.1 cents per litre in the
    second quarter was higher than the prior year quarter of 7.6 cents per
    litre. Similar to the Canadian propane business, average sales margins
    benefitted from the low price environment for both wholesale propane and
    heating oil. In addition, residential margins benefitted from ongoing
    margin management initiatives and strategic supply initiatives. 
--  Sales volumes within the U.S. refined fuels business were lower than the
    prior year quarter due to modest reductions in residential and
    commercial sales volumes due to ongoing heating oil customer attrition
    and warmer than average temperatures. Additionally, commercial sales
    volumes were negatively impacted by reduced agricultural volumes as a
    result of unfavourable weather conditions.  
--  Average weather for the U.S. refined fuel business, as measured by
    degree days, for the second quarter was 10% warmer than the prior year
    and 4% warmer than the 5-year average. Similar to the Canadian propane
    business, the impact of weather on the second quarter results is
    typically not material due to the seasonal nature of heating related
    volumes. 
--  The supply portfolio management business generated gross profits of $6.7
    million in the second quarter compared to $7.0 million in the prior year
    quarter. Results in the current year quarter benefitted from the reduced
    wholesale cost of propane compared to the prior year quarter. Market
    trading opportunities were consistent with the prior year quarter.
    Superior anticipates that annual profitability for the supply portfolio
    management business in 2015 will be consistent with 2014. 
--  The fixed-price energy services business generated gross profits of $3.6
    million compared to $3.1 million in the prior year quarter. Natural gas
    and electricity gross profits were consistent with the prior year
    quarter. 
--  Operating expenses were $81.4 million in the second quarter compared to
    $74.3 million in the prior year quarter. Operating expenses compared to
    the prior year quarter were impacted by a stronger U.S. dollar on the
    translation of U.S. denominated expenses and the inclusion of a $3.7
    million one-time litigation and insurance settlement recognized in the
    prior year quarter. Operating costs continue to be positively impacted
    by the implementation of The Superior Way business process initiatives
    and reduced headcount. Net of the impact of foreign currency translation
    and the one-time settlement in the prior year quarter, operating costs
    were modestly lower than the prior year quarter. 
--  Superior continues to make excellent progress on sustainably reducing
    the cost structure of its Energy Services business as part of its
    ongoing expense reduction initiatives, including the implementation of
    The Superior Way project, which was successfully implemented across all
    operating regions in the second half of 2014. Superior anticipates
    seeing ongoing improvements in the cost structure relative to the prior
    year quarter, in particular the Canadian propane business throughout
    2015. 
--  EBITDA from operations for 2015 for the Energy Services business is
    anticipated to be consistent to modestly higher than in 2014, consistent
    with the forecast provided in the first quarter 2015. EBITDA from the
    Canadian propane and U.S. refined fuels businesses will benefit from
    ongoing operational improvements. Operating costs as a percentage of
    gross profits are anticipated to benefit from a full year run rate of
    business initiatives and The Superior Way project, offset in part, by
    the impact of reduced oil field gross profits. Gross profits in the
    Canadian Propane and U.S. refined fuels business are anticipated to be
    consistent with 2014 with the exception of industrial related gross
    profits in the Canadian propane business. Superior is forecasting a
    modest reduction in gross profits related to oil and gas sales volumes
    within the Canadian propane business as a result of ongoing volatility
    in crude oil. Gross profit from the supply portfolio management business
    is anticipated to be similar to 2014 whereas gross profit from the
    fixed-price energy business will be higher in 2015 than in 2014 due to
    the absence of losses that resulted from the temperatures experienced in
    the first quarter of 2014. Average weather, as measured by degree days,
    for the remainder of 2015 is anticipated to be consistent with the 5-
    year average period. Operating conditions for 2015 are anticipated to be
    similar to 2014 with the exception of the decline in the wholesale cost
    of propane which Superior anticipates will persist throughout 2015. 

Specialty Chemicals


--  EBITDA from operations for the second quarter was $10.0 million compared
    to $24.7 million in the prior year quarter. 
--  Sodium chlorate gross profits were lower than the prior year quarter due
    to a reduction in sales volumes and average gross margins. 
--  Sodium chlorate sales volumes were 22% lower than the prior year quarter
    due to a reduction in the nomination of volumes under the agreement with
    Tronox and reduced customer demand as a result of extended pulp producer
    maintenance downtime in the second quarter relative to maintenance in
    prior years. Historically, pulp producers complete normal course
    maintenance throughout the second quarter. During the second quarter of
    2015, the maintenance downtime was on average two to two and a half
    times longer than historical averages for a majority of Superior's
    customer base. It appears that pulp producers who have been operating at
    very high utilization rates due to strong market conditions for pulp
    were required to undertake more significant maintenance relative to
    prior years. The pulp producer downtime has resulted in a tightening of
    pulp inventories with a corresponding tightening of sodium chlorate
    inventories as production levels were reduced in light of reduced
    customer demand. Tighter pulp and sodium chlorate inventory levels
    should be supportive to pricing over the next several quarters. 
--  Gross margin per tonne was modestly lower than the prior year due to
    higher electricity costs and a reduction in average realized selling
    prices. Realized average selling prices include the impact of existing
    foreign currency hedge contracts. Selling prices excluding the impact of
    foreign currency hedging contracts were higher than the prior year.
    Gross margin per tonne was also negatively impacted by a higher mix of
    international sales volumes. 
--  Superior's foreign currency hedge contracts for the 2015 fiscal year
    were entered into in prior years when the Canadian dollar was stronger
    relative to the U.S. dollar. As a result, Superior's effective U.S.
    exchange rate for 2015 is approximately 1.04 per Canadian dollar for
    1.00 U.S. dollar. Beginning in 2016, lower value foreign currency
    contracts roll-off and Superior's effective U.S. exchange rate will
    significantly improve which is expected to result in incremental
    consolidated earnings of $15 to $20 million in 2016 relative to 2015.
    See "Financial Instruments - Risk Management" in Superior's 2015 second
    quarter MD&A for a summary of Superior's foreign currency hedge
    contracts.  
--  As previously disclosed, Specialty Chemicals has provided notification
    that it will not be nominating any volume for fiscal 2016 related to its
    130,000MT sodium chlorate supply agreement with Tronox. During the
    second quarter, Tronox provided formal notification to Superior that it
    will be commencing with a decommissioning of the facility upon
    completion of Superior's 2015 supply requirements. The decommissioning
    of the facility will result in the acceleration of certain fees,
    requiring Superior to make a payment to Tronox of approximately US $3.3
    million in the first quarter of 2016. 
--  With Tronox determining that it will cease sodium chlorate manufacturing
    at the Hamilton, Mississippi facility, the supply and demand
    fundamentals for North American sodium chlorate would largely be
    balanced when current exports are taken into consideration. The
    potential for an improved supply and demand balance beginning in 2016
    provides an improved environment for Superior to recover production cost
    increases, particularly electricity cost increases, that Superior has
    had to absorb over the last several years. 
--  Chloralkali gross profits were lower than the prior year quarter due to
    lower average realized sales prices including the impact of foreign
    currency hedge contracts; sales volumes were consistent with the prior
    year quarter. Sales prices, before the impact of foreign currency
    hedging contracts, for chlorine were higher than the prior year, for
    caustic were consistent to modestly higher than the prior year, and for
    hydrochloric acid were materially lower than the prior year.
    Hydrochloric acid pricing has been negatively impacted by reduced demand
    from the oil and gas industry. In addition to the impact of selling
    prices, chloralkali gross margins were negatively impacted by higher
    electricity costs and a higher proportion of lower margin hydrochloric
    acid sales volumes compared to higher margin caustic sales volumes in
    the prior year quarter. 
--  Operating expenses of $41.2 million were $38.9 million higher than the
    prior year quarter due to the impact of a stronger U.S. dollar on the
    translation of U.S. denominated expenses and general inflationary
    increases. 
--  Superior expects EBITDA from operations for 2015 to be approximately $30
    million lower than in 2014. Superior's forecast for its Specialty
    Chemicals business at the end of the first quarter of 2015 was for
    results in 2015 to be modestly lower than in 2014. The reduction in the
    2015 forecast is a result of lower than anticipated actual results in
    the second quarter of 2015, in addition to a reduction in the
    anticipated contribution for the third and fourth quarters of 2015. The
    reduction in the forecast for the second half of 2015 is due in part to
    lower than previously anticipated sodium chlorate gross profits as a
    result of a reduction in sales volumes. The reduction in sodium chlorate
    sales volumes is due largely to the impact of a stronger U.S. dollar
    which has resulted in a higher effective price of pulp, resulting in
    upwards pressure on the price of paper and other pulp derivatives which
    is causing reduced demand and therefore reduced demand for pulp and
    sodium chlorate. Chloralkali gross profits are now anticipated to be
    weaker than previously disclosed due to additional weakness in
    hydrochloric acid sales volumes and pricing. Since the first quarter of
    2015, there has been intense pressure on both pricing and sales volumes.
    Although pricing has generally been consistent with management's
    expectations, there have been greater than anticipated volume declines
    as inventories from other geographic and end-use markets are being sold
    into Superior's markets. Sales prices and sales volumes of caustic and
    chlorine are consistent with the previously provided forecast and are
    anticipated to be modestly higher than the prior year. Supply and demand
    fundamentals in the chloralkali markets in which Superior operates are
    anticipated to remain similar to 2014 with the exception of hydrochloric
    acid as noted above. 

Construction Products Distribution


--  EBITDA from operations for the second quarter was $12.7 million compared
    to $8.0 million in the prior year quarter. Results in the second quarter
    benefitted from ongoing improvements in U.S. markets in addition to
    normal weather and operating conditions in the current year quarter
    which positively impacted sales volumes and operating costs compared to
    the prior year quarter. Prior year quarter results were negatively
    impacted by difficult weather conditions.  
--  Total gross profit of $59.5 million was $8.9 million higher than the
    prior year quarter due to improved sales volumes, higher average selling
    prices, higher average sales margins and the impact of a stronger U.S.
    dollar. 
--  Gypsum revenues were higher than the prior year quarter due to improved
    U.S. sales volumes as a result of ongoing improvements in the U.S.
    residential construction sector, higher average selling prices and the
    impact of a stronger U.S. dollar on the translation of U.S. denominated
    revenues. Average sales margins in the U.S. were higher than the prior
    year quarter due to ongoing pricing and procurement initiatives,
    improved market conditions and the timing of the recognition of rebates
    in 2015 compared to 2014, which more than offset the impact of a higher
    mix of large industrial projects. Canadian revenues were higher than the
    prior year quarter due to improved weather and operating conditions
    compared to the prior quarter which was partially offset by a modest
    decline in gross margins due to competitive pressures. 
--  Commercial and industrial insulation (C&I) revenues increased over the
    prior year quarter due to higher industrial market activity,
    improvements in U.S. end-use markets, an increase in market share due to
    investments in sales and marketing and the impact of a stronger U.S.
    dollar on the translation of U.S. denominated revenues. C&I gross
    margins were consistent with the prior year quarter. 
--  Operating expenses for the second quarter were $46.8 million compared to
    $42.6 million in the prior year quarter. Operating costs were impacted
    by higher sales volumes and the impact of a stronger U.S. dollar on the
    translation of U.S. denominated expenses. Operating expenses as a
    percentage of sales were lower than the prior year. 
--  CPD has approved and begun a systems integration project that will
    replace two legacy ERP systems with a single, standardized solution. The
    updated system will provide enhanced procurement, pricing and
    operational effectiveness, enabling CPD to further improve margins and
    operating costs once complete. CPD anticipates that the project will be
    completed over the next two years at a total cost of approximately US$22
    million which is split between capital investment of US$12 million and
    one-time operating costs of US$10 million (US$3 million 2015 and US$7
    million 2016). Superior anticipates that approximately 60% of these
    costs will be incurred in 2015 with the remainder in 2016. Total costs
    incurred to date are US$2.7 million consisting of US$2.1 million in
    capital and US$0.6 million in operating expense. 
--  Superior anticipates that EBITDA from operations in 2015 will be higher
    than in 2014 due to continued improvements in the U.S. residential
    market, the product expansion of drywall into ceiling-only branches and
    benefits resulting from ongoing pricing and procurement initiatives.
    Superior anticipates that the U.S. commercial market will be modestly
    improved in 2015 compared to 2014 and that the Canadian residential
    market will continue to be challenging. 

Corporate Related


--  Interest expense for the second quarter was $11.1 million compared to
    $11.6 million in the prior year quarter. Interest expense was lower than
    the prior year quarter due to lower average interest rates and lower
    average debt levels. Superior's average interest rate was positively
    impacted by settlements on interest rate swaps which more than offset
    the impact of higher rates due to Superior's 7-year, $200 million, 6.50%
    senior unsecured note offering which closed on December 9, 2014.
    Superior anticipates that interest costs will be consistent with the
    prior year for the remaining two quarters of 2015 due to reduced debt
    levels and lower effective interest rates. 
--  On June 30, 2015, Superior completed the redemption of the entire $172.5
    million outstanding principal amount of its 5.75% convertible debentures
    utilizing funds from its existing credit facility to fund the
    redemption. 
--  Corporate costs were $2.2 million in the second quarter which was $3.8
    million lower than the prior year quarter. The decrease in corporate
    costs is due to reduced long-term incentive plan costs relative to the
    prior year quarter as a result of fluctuations in Superior's share
    price. Additionally, corporate costs in the prior year quarter included
    one-time costs associated with the potential CPD sales process. 
--  Superior's total debt (including convertible debentures) to Compliance
    EBITDA before restructuring costs was 3.4X as at June 30, 2015 (3.4X
    after restructuring costs) compared to 3.5X as at December 31, 2014
    (3.6X after restructuring costs). The reduction in leverage is due to
    lower debt levels as a result of reduced working capital requirements.
    See "Debt Management Update" for additional details. 
--  As disclosed on June 17, 2015, Mr. Wayne Bingham, Chief Financial
    Officer (CFO) is expected to retire no later than February 2016. Mr.
    Bingham joined Superior in the capacity of CFO in October 2006. Mr.
    Bingham will remain with Superior until February 2016 or until his
    retirement date to assist in the transition of the new CFO as well as
    the corporate office relocation to Toronto which is anticipated in the
    fourth quarter of 2015. Superior has commenced a search for a successor
    to Mr. Bingham. 
--  On June 29, 2015, Standard & Poor's confirmed Superior Plus Corp.'s
    corporate credit rating as BB and Superior Plus LP's senior secured debt
    rating as BBB- and Superior Plus LP's senior unsecured debt rating as
    BB. The outlook for the long-term corporate rating remains stable. 
--  On June 26, 2015, DBRS confirmed Superior Plus Corp.'s corporate credit
    rating as BB high (stable), Superior Plus LP's senior secured rating as
    BB high (stable) and Superior Plus LP's senior unsecured debt rating as
    BB low (stable). 

CRA Income Tax Update

As previously disclosed, On April 2, 2013, Superior received, from the CRA, Notices of Reassessment for Superior's 2009 and 2010 taxation years reflecting the CRA's intent to challenge the tax consequences of the Conversion. On November 7, 2014, Superior received the Notices of Reassessment for the 2011 to 2013 taxation years. The CRA's position is based on the acquisition of control rules and the general anti-avoidance rules in the Income Tax Act (Canada).

The table below summarizes Superior's estimated tax liabilities and payment requirements associated with the received and anticipated Notices of Reassessment. Upon receipt of the Notices of Reassessment, 50% of the taxes payable pursuant to such Notices of Reassessment, must be remitted to the CRA.


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                            Taxes Payable   50% of the Taxes    Month/year -
Taxation Year                      (1)(2)       Payable(1)(2)   paid/payable
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2009/2010                       $13.0                    $6.5     April 2013
2011                            $12.8                    $6.4  February 2015
2012                             $8.8                    $4.4  February 2015
2013                             $9.4                    $4.7  February 2015
2014                            $13.0(3)                 $6.5           2015
2015                            $12.0(3)                 $6.0           2016
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Total                           $69.0                   $34.5               
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(1) In millions of dollars.                                                 
(2) Includes estimated interest and penalties.                              
(3) Estimated based on Superior's previously filed tax returns, 2014        
    financial results and the midpoint of Superior's 2015 financial outlook.

On May 8, 2013 and August 7, 2013, respectively, Superior filed a Notice of Objection and a Notice of Appeal with respect to the Notice of Reassessments received on April 2, 2013. On February 4, 2015, Superior filed a Notice of Objection with respect to the Notice of Reassessments received on November 7, 2014. Superior anticipates that if the case proceeds in the Tax Court of Canada, the case could be heard within two years, with a decision rendered six to twelve months after completion of the court hearings. If a decision of the Tax Court of Canada were to be appealed, the appeal process could reasonably be expected to take an additional two years. If Superior receives a positive decision then any taxes, interest and penalties paid to the CRA will be refunded plus interest. If Superior is unsuccessful, then any remaining taxes payable plus interest and penalties will have to be remitted to the CRA.

Superior remains confident in the appropriateness of its tax filing position and the expected tax consequences of the Conversion and intends to vigorously defend such position and to file its future tax returns on a basis consistent with its view of the outcome of the Conversion.

Interim tax payments made by Superior will be recorded to the balance sheet and will not materially impact either adjusted operating cash flow or net earnings.

Based on the midpoint of Superior's 2015 financial outlook of AOCF per share of $1.75, if the tax pools from the Conversion were not available to Superior, the impact would be an increase to cash income taxes of approximately $12.0 million or $0.09 per share for 2015. As previously stated, Superior intends to file its future income tax returns on a basis consistent with its view of the outcome of the Conversion.

2015 Financial Outlook

As previously disclosed on July 23, 2015, Superior's 2015 financial outlook of AOCF per share has been reduced to $1.65 to $1.85 from $1.80 to $2.10 per share as provided in the first quarter of 2015. The reduction in the 2015 financial outlook is due to a reduced outlook for the Specialty Chemicals business for the second half of 2015 in addition to lower than expected results for the second quarter of 2015. The reduction in the outlook and second quarter results for the Specialty Chemicals business is due to weaker than anticipated hydrochloric acid pricing and sales volumes and a reduction in second quarter sodium chlorate sales volumes due to longer than anticipated pulp mill plant maintenance closures.

For additional details on the assumptions underlying the 2015 financial outlook, see Superior's 2015 second quarter MD&A.

Debt Management Update

Superior remains focused on managing both its total debt and its total debt to EBITDA. Superior is currently forecasting a total debt to EBITDA ratio at December 31, 2015 of 3.4 X to 3.8X compared to the previously provided range of 3.0X to 3.4X forecast at the first quarter of 2015. The change to Superior's forecasted debt and leverage levels is due to a reduction in Superior's 2015 financial outlook. See "2015 Financial Outlook" for additional details.

Superior's anticipated debt repayment for 2015 and total debt to EBITDA leverage ratio as at December 31, 2015, based on Superior's 2015 financial outlook is detailed in the chart below.


----------------------------------------------------------------------------
                                                  Dollar Per    Millions of 
                                                       Share        Dollars 
----------------------------------------------------------------------------
2015 financial outlook AOCF per share -                                     
 midpoint (1)                                           1.75          222.0 
Maintenance capital expenditures, net                  (0.39)         (50.0)
Capital lease obligation repayments                    (0.20)         (25.0)
----------------------------------------------------------------------------
Cash flow available for dividends and debt                                  
 repayment before growth capital                        1.16          147.0 
Growth capital expenditures                            (0.21)         (27.0)
CPD system integration costs                           (0.11)         (14.0)
Tax payments to CRA (50%)                              (0.17)         (22.0)
----------------------------------------------------------------------------
Estimated 2015 free cash flow available for                                 
 dividends and debt repayment                           0.67           84.0 
Conversion of 7.50% convertible debentures to                               
 equity-callable no earlier than October 31,                                
 2015                                                   0.59           75.0 
Dividends                                              (0.72)         (92.0)
----------------------------------------------------------------------------
Total estimated reduction in debt                       0.54           67.0 
Estimated total debt to EBTIDA as at December                               
 31, 2015                                        3.4X - 3.8X    3.4X - 3.8X 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Dividends                                               0.72           92.0 
Calculated payout ratio after maintenance                                   
 capital and capital lease repayments                     62%            62%
Calculated payout ratio after all capital                                   
 (excluding tax payments to CRA)                          86%            86%
----------------------------------------------------------------------------
----------------------------------------------------------------------------


(1) See "Financial Outlook" in Superior's 2015 second quarter MD&A for      
    additional details including assumptions, definitions and risk factors. 

Superior's total debt (including convertible debentures) to Compliance EBITDA before restructuring costs was 3.4X as at June 30, 2015 (3.4X after restructuring costs), lower than the 3.5X as at December 31, 2014 (3.6X after restructuring costs). Debt levels and the total leverage ratio as at June 30, 2015 were lower than December 31, 2014 levels due debt repayment as a result of free cash flow generation in the first and second quarters of 2015. Superior continues to focus on reducing its total leverage through ongoing debt reduction, including reducing working capital requirements and improving business operations.

2015 Detailed Second Quarter Results

Superior's 2015 Second Quarter Management's Discussion and Analysis is attached and is also available on Superior's website at www.superiorplus.com under the Investor Relations section.

2015 Second Quarter Conference Call

Superior will be conducting a conference call and webcast for investors, analysts, brokers and media representatives to discuss the 2015 Second Quarter Results at 8:30 a.m. MDT on Friday, July 31, 2015. To participate in the call, dial:1-800-396-7098. An archived recording of the call will be available for replay until midnight, September 30, 2015. To access the recording, dial: 1-800-408-3053 and enter pass code 7316441 followed by the # key. Internet users can listen to the call live, or as an archived call, on Superior's website at www.superiorplus.com.

Supplemental Financial Information

Diluted AOCF Per Share

There were no dilutive instruments for the three months ended June 30, 2015 and 2014. For the six months ended June 30, 2015, the dilutive impact of the 7.50%, October 31, 2016 convertible debentures was 6.1 million shares (132.5 million total shares on a dilutive basis) with a resulting impact on AOCF of $2.6 million ($121.1 million total on a dilutive basis). For the six months ended June 30, 2014, the dilutive impact of the 7.50%, October 31, 2016 convertible debentures was 6.6 million shares (132.8 million total shares on a dilutive basis) with a resulting impact on AOCF of $2.8 million ($121.9 million total on a dilutive basis).

Forward Looking Information

Certain information included herein is forward-looking information within the meaning of applicable Canadian securities laws. Forward-looking information may include statements regarding the objectives, business strategies to achieve those objectives, expected financial results (including those in the area of risk management), economic or market conditions, and the outlook of or involving Superior, Superior LP and its businesses. Such information is typically identified by words such as "anticipate", "believe", "continue", "could", "estimate", "expect", "plan", "intend", "forecast", "future", "guidance", "may", "predict", "project", "should", "strategy", "target", "will" or similar expressions suggesting future outcomes.

Forward-looking information in this document includes: future financial position, consolidated and business segment outlooks, expected EBITDA from operations, expected adjusted operating cash flow (AOCF) and adjusted operating cash flow per share, expected leverage ratios and debt repayment, debt management summary, expectations in terms of the cost of operations, capital spend and maintenance and the variability of these costs, timing, costs and benefits of restructuring activities, nomination of sodium chlorate volumes under supply agreements and the related costs and potential benefits, future supply and demand fundamentals for North American sodium chlorate, business strategy and objectives, development plans and programs, business expansion and cost structure and other improvement projects, expected product margins and sales volumes, expected timing of commercial production and the costs and benefits associated therewith, anticipated timing and impact of Tronox zero nomination for 2016, market conditions in Canada and the U.S., expected tax consequences of the Conversion, the challenge by the CRA of the tax consequences of the Conversion (and the expected timing and impact of such process including any payment of taxes and the quantum of such payments), future income taxes, the impact of proposed changes to Canadian tax legislation or U.S. tax legislation, future economic conditions, future exchange rates, exposure to such rates and incremental earnings associated with such rates, dividend strategy, payout ratio, expected weather, expectations in respect to the global economic environment, our trading strategy and the risk involved in these strategies, the impact of certain hedges on future reported earnings and cash flows, commodity prices and costs, the impact of contracts for commodities, demand for propane, heating oil and similar products, demand for chemicals including sodium chlorate and chloralkali, effect of operational and technological improvements, anticipated costs and benefits of business enterprise system upgrade plans, future working capital levels, expected governmental regulatory regimes and legislation and their expected impact on regulatory and legislative compliance costs, expectations for the outcome of existing or potential legal and contractual claims, our ability to obtain financing on acceptable terms, anticipated relocation costs, expected life of facilities and statements regarding net working capital and capital expenditure requirements of Superior or Superior Plus LP.

Forward-looking information is provided for the purpose of providing information about management's expectations and plans about the future and may not be appropriate for other purposes. Forward-looking information herein is based on various assumptions and expectations that Superior believes are reasonable in the circumstances. No assurance can be given that these assumptions and expectations will prove to be correct. Those assumptions and expectations are based on information currently available to Superior, including information obtained from third party industry analysts and other third party sources, and the historic performance of Superior's businesses. Such assumptions include anticipated financial performance, current business and economic trends, the amount of future dividends paid by Superior, business prospects, availability and utilization of tax basis, regulatory developments, currency, exchange and interest rates, trading data, cost estimates, our ability to obtain financing on acceptable terms, the assumptions set forth under the "Financial Outlook" sections of our second quarter management's discussion and analysis ("MD&A") and are subject to the risks and uncertainties set forth below.

By its very nature, forward-looking information involves numerous assumptions, risks and uncertainties, both general and specific. Should one or more of these risks and uncertainties materialize or should underlying assumptions prove incorrect, as many important factors are beyond our control, Superior's or Superior LP's actual performance and financial results may vary materially from those estimates and intentions contemplated, expressed or implied in the forward-looking information. These risks and uncertainties include incorrect assessments of value when making acquisitions, increases in debt service charges, the loss of key personnel, fluctuations in foreign currency and exchange rates, inadequate insurance coverage, liability for cash taxes, counterparty risk, compliance with environmental laws and regulations, reduced customer demand, operational risks involving our facilities, force majeure, labour relations matters, our ability to access external sources of debt and equity capital, and the risks identified in (i) our MD&A under the heading "Risk Factors" and (ii) Superior's most recent Annual Information Form. The preceding list of assumptions, risks and uncertainties is not exhaustive.

When relying on our forward-looking information to make decisions with respect to Superior, investors and others should carefully consider the preceding factors, other uncertainties and potential events. Any forward-looking information is provided as of the date of this document and, except as required by law, neither Superior nor Superior LP undertakes to update or revise such information to reflect new information, subsequent or otherwise. For the reasons set forth above, investors should not place undue reliance on forward-looking information.

Management's Discussion and Analysis of 2015 Second Quarter Results

July 30, 2015

The following Management Discussion & Analysis (MD&A) is a review of the financial performance and position of Superior Plus Corp. (Superior) as at and for the three months ended June 30, 2015 and 2014. The information in this MD&A is current to July 30, 2015. This MD&A should be read in conjunction with Superior's audited consolidated financial statements and notes to those statements as at and for the twelve months ended December 31, 2014 and its December 31, 2014 MD&A. Additional information regarding Superior, including the Annual Information Form, is available on SEDAR at www.sedar.com, and on Superior's website, www.superiorplus.com.

The accompanying unaudited condensed consolidated financial statements of Superior were prepared by and are the responsibility of Superior's management. Superior's unaudited condensed consolidated financial statements were prepared in accordance with International Accounting Standard 34 Interim Financial Reporting as issued by the International Accounting Standards Board (IASB). Dollar amounts in this MD&A are expressed in Canadian dollars and millions except where otherwise noted.

Overview of Superior

Superior is a diversified business corporation. Superior holds 99.9% of Superior Plus LP (Superior LP), a limited partnership formed between Superior General Partner Inc. (Superior GP) as general partner and Superior as limited partner. Superior owns 100% of the shares of Superior GP and Superior GP holds 0.1% of Superior LP. The cash flow of Superior is solely dependent on the results of Superior LP and is derived from the allocation of Superior LP's income to Superior by means of partnership allocations. Superior, through its ownership of Superior LP and Superior GP, has three operating segments: the Energy Services segment, which includes a Canadian propane distribution business, a U.S. refined fuels distribution business, a fixed-price energy services business and a supply portfolio management business; the Specialty Chemicals segment; and the Construction Products Distribution segment.


FINANCIAL OVERVIEW                                                          
Summary of Adjusted Operating Cash Flow                                     
----------------------------------------------------------------------------
                                     Three months ended    Six months ended 
                                                June 30             June 30 
(millions of dollars except per                                             
 share amounts)                          2015   2014(5)      2015   2014(5) 
----------------------------------------------------------------------------
Revenue                                 743.9     895.4   1,750.5   2,177.7 
Gross profit                            192.8     196.0     482.5     486.2 
----------------------------------------------------------------------------
EBITDA from operations:(1)               37.2      50.6     155.0     166.4 
Interest expense                        (11.1)    (11.6)    (25.4)    (24.5)
Corporate costs                          (2.2)     (6.0)     (9.8)    (10.8)
Cash income tax expense                  (0.6)     (0.5)     (1.3)     (0.9)
----------------------------------------------------------------------------
Adjusted operating cash flow(1)                                             
 before restructuring costs              23.3      32.5     118.5     130.2 
Restructuring costs(2)                      -      (9.3)        -     (11.1)
----------------------------------------------------------------------------
Adjusted operating cash flow(1)          23.3      23.2     118.5     119.1 
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
Adjusted operating cash flow per                                            
 share before restructuring costs,                                          
 basic(1)(2)(3)                         $0.18     $0.26     $0.94     $1.03 
Adjusted operating cash flow per                                            
 share before restructuring costs,                                          
 diluted(1)(2)(3)(4)                    $0.18     $0.26     $0.91     $1.00 
----------------------------------------------------------------------------
Adjusted operating cash flow per                                            
 share, basic(1)(2)(3)                  $0.18     $0.18     $0.94     $0.94 
Adjusted operating cash flow per                                            
 share, diluted(1)(2)(3)(4)             $0.18     $0.18     $0.91     $0.92 
----------------------------------------------------------------------------
(1) Earnings before interest, taxes, depreciation and amortization (EBITDA) 
    and adjusted operating cash flow (AOCF) are not GAAP measures. See "Non-
    GAAP Financial Measures".                                               
(2) Superior has presented its 2014 financial results on a before and after 
    restructuring cost basis due to the one-time nature of these items. See 
    "Non-GAAP Restructuring Costs" for further details.                     
(3) The weighted average number of shares outstanding for the three and six 
    months ended June 30, 2015, is 126.7 million and 126.4 million,         
    respectively (three and six months ended June 30, 2014 - 126.2 million).
(4) There were no dilutive instruments for the three months ended June 30,  
    2015 and 2014. For the six months ended June 30, 2015, the dilutive     
    impact of the 7.50%, October 31, 2016 convertible debentures was 6.1    
    million shares (132.5 million total shares on a dilutive basis) with a  
    resulting impact on AOCF of $2.6 million ($121.1 million total on a     
    dilutive basis). For the six months ended June 30, 2014, the dilutive   
    impact of the 7.50%, October 31, 2016 convertible debentures was 6.6    
    million shares (132.8 million total shares on a dilutive basis) with a  
    resulting impact on AOCF of $2.8 million ($121.9 million total on a     
    dilutive basis).                                                        
(5) June 30, 2014 amounts have been adjusted. See "Prior Period Adjustments 
    Details".                                                               
                                                                            
Comparable GAAP Financial Information (1)                                   
----------------------------------------------------------------------------
                                     Three months ended     Six months ended
                                                June 30              June 30
(millions of dollars except per                                             
 share amounts)                           2015  2014(2)       2015   2014(2)
----------------------------------------------------------------------------
Net earnings (loss)                       40.9      5.9       31.1      56.0
Net earnings (loss) per share basic      $0.32    $0.05      $0.25     $0.44
Net earnings (loss) per share                                               
 diluted                                 $0.25   $(0.02)     $0.24     $0.44
Net cash flows from (used in)                                               
 operating activities                     68.1    121.5      200.0     172.6
Net cash flows from (used in)                                               
 operating activities per share                                             
 basic                                   $0.54    $0.96      $1.58     $1.37
Net cash flows from (used in)                                               
 operating activities per share                                             
 diluted                                 $0.53    $0.93      $1.53     $1.32
----------------------------------------------------------------------------
(1) See "Non-GAAP Financial Measures".                                      
(2) June 30, 2014 amounts have been adjusted. See "Prior Period Adjustments 
    Details".                                                               
                                                                            
Segmented Information                                                       
----------------------------------------------------------------------------
                                      Three months ended    Six months ended
                                                 June 30             June 30
(millions of dollars)                     2015   2014(2)      2015   2014(2)
----------------------------------------------------------------------------
EBITDA from operations:(1)                                                  
  Energy Services                         14.5      17.9      97.8      99.6
  Specialty Chemicals                     10.0      24.7      40.5      54.3
  Construction Products Distribution      12.7       8.0      16.7      12.5
----------------------------------------------------------------------------
                                          37.2      50.6     155.0     166.4
----------------------------------------------------------------------------
(1) See "Non-GAAP Financial Measures".                                      
(2) June 30, 2014 amounts have been adjusted. See "Prior Period Adjustments 
    Details".                                                               
                                                                            
AOCF Reconciled to Net Cash Flow from Operating Activities (1)              
----------------------------------------------------------------------------
                                     Three months ended    Six months ended 
                                                June 30             June 30 
(millions of dollars)                    2015   2014(3)      2015   2014(3) 
----------------------------------------------------------------------------
Net cash flow from operating                                                
 activities                              68.1     121.5     200.0     172.6 
Add: Non-cash interest expense            3.9       1.7       5.6       3.2 
     Increase (decrease) in non-cash                                        
      working capital                   (33.1)    (86.2)    (54.8)    (28.1)
     Loss on debenture redemption        (0.1)        -      (0.1)        - 
     Cash income tax expense             (0.6)     (0.5)     (1.3)     (0.9)
     Finance expense recognized in                                          
      net earnings                      (14.9)    (13.3)    (30.9)    (27.7)
----------------------------------------------------------------------------
AOCF(2)                                  23.3      23.2     118.5     119.1 
----------------------------------------------------------------------------
(1) See the unaudited condensed consolidated financial statements for net   
    cash flow from operating activities and changes in non-cash working     
    capital.                                                                
(2) See "Non-GAAP Financial Measures".                                      
(3) June 30, 2014 amounts have been adjusted. See "Prior Period Adjustments 
    Details".                                                               

Second quarter AOCF was $23.3 million, a decrease of $9.2 million or 28% from the prior year quarter AOCF of $32.5 million (before restructuring costs of $9.3 million). The decrease in AOCF was primarily due to lower operating results at Specialty Chemicals and Energy Services, partially offset by higher operating results at Construction Products Distribution (CPD), lower interest and corporate costs. AOCF per share of $0.18 per share was $0.08 or 31% lower than the prior year quarter of $0.26 per share (before restructuring costs) due to the decrease in AOCF and modestly higher weighted average share outstanding. The weighted average shares outstanding increased 0.5 million due to the conversion of $5.3 million of debentures.

Adjusted operating cash flow for the six months ended June 30, 2015 was $118.5 million, a decrease of $11.7 million or 9% from the prior year AOCF of $130.2 million (before restructuring costs of $11.1 million). The decrease in AOCF was primarily due to lower operating results at Specialty Chemicals and Energy Services, higher interest costs and higher cash taxes, partially offset by higher operating results at Construction Products Distribution (CPD), lower corporate costs. AOCF per share of $0.94 per share was $0.09 or 9% lower than the prior year quarter of $1.03 per share (before restructuring costs) due to the decrease in AOCF and a modest increase in weighted average shares outstanding as noted above.

Second Quarter Comparison to Prior Year Quarter

Net earnings for the second quarter were $40.9 million, an increase of $35.0 million or 593% from the prior year quarter. The increase in net earnings was due primarily to higher unrealized gains on derivative financial instruments and a recovery on income taxes, offset in part by lower revenue and gross profit, and higher operating costs and finance expenses. Unrealized gains on derivative financial instruments were higher due primarily to unrealized gains recorded on Superior's embedded debenture derivatives as a result of the decrease in Superior's share price, compared to unrealized losses in the prior year quarter. Total income tax recovery for the second quarter was $3.2 million compared to income tax expense of $3.0 million in the prior year quarter. The income tax recovery was due primarily to the impact of the change in the statutory tax rates in Alberta on deferred tax.

Revenue of $743.9 million was $151.5 million lower than in the prior year's quarter due primarily to decreased Energy Services and Specialty Chemicals revenue, partially offset by increased Construction Products Distribution (CPD) revenue. Energy Services revenue decreased due to lower propane, heating oil, natural gas, and refined fuels commodity prices. Specialty Chemicals revenue decreased due to lower volumes. CPD revenues increased due to higher volumes and the impact of foreign exchange on U.S. denominated revenues. Gross profit of $192.8 million was $3.2 million lower than the prior year quarter gross profit of $196.0 million due primarily to decreased revenues. See "Prior Period Adjustment Details" for discussion of the adjustments impacting Q2 2014 gross profit.

Operating expenses of $187.4 million in the second quarter were $8.1 million higher than operating expenses in the prior year quarter primarily due to the impact of the weaker Canadian dollar on the translation of U.S. denominated operating expenses, offset in part by decreased operating expenses associated with head count reduction at Energy Services. Finance expenses were higher due primarily to the interest on the high-yield debenture issuance.

Year-to-Date Comparison to Prior Year-to-Date

The net earnings for the six months ended June 30, 2015 was $31.1 million, a $24.9 million or 44% decrease from the prior year. The decrease was due primarily to lower revenue, higher operating expenses and interest costs, unrealized losses on derivative financial instruments and modestly higher income tax expense.

Revenue for the six months ended June 30, 2015 of $1,750.5 million was $427.2 million or 20% lower than the prior year due primarily to decreased Energy Services revenue, decreased Specialty Chemicals revenue, partially offset by increased CPD revenue. Energy Services revenue was lower due to the decrease in the wholesale cost of propane, natural gas, and refined fuels. Specialty Chemicals revenue decreased due to lower volumes, offset in part by the favourable impact of foreign exchange. CPD revenue increased due primarily to the favourable impact of foreign exchange and higher volumes. Gross profit of $482.5 million was $3.7 million lower than the adjusted prior year quarter gross profit of $486.2 million. See "Prior Period Adjustment Details" for discussion of the adjustments impacting the six months ended June 30, 2014 gross profit.

Operating expenses for the six months ended June 30, 2015 of $395.3 million were $11.2 million higher than operating expenses in the prior year quarter primarily due to the negative impact of weaker Canadian dollar on the translation of U.S. denominated operating expenses, offset in part by the decreased operating expenses associated with head count reduction at Energy Services. Finance expenses were higher due to the interest on high-yield debentures.

Prior Period Adjustments Details

During the first and second quarters of 2014, Superior recognized $9.5 million and $0.7 million, respectively ($0.08 and $0.01 per share, respectively) in adjustments related to its supply portfolio management business and its U.S. refined fuels business. The adjustment in the supply portfolio management business was primarily due to the over-accrual of freight charges during the fourth quarter of 2013 and throughout the first quarter of 2014. The adjustment in the U.S. refined fuels business was due to inaccurate inventory costing in prior periods as a result of not properly recognizing book to physical inventory adjustments.

Superior has recognized an adjustment, as detailed below, of $0.7 million in its second quarter 2014 results, and $10.2 million for the six months ended June 30, 2014 within the Energy Services business.

A summary of the adjustments related to the first and second quarters of 2014 is as follows:


----------------------------------------------------------------------------
                                                 Three months    Six months 
                                                        ended         ended 
(millions of dollars)                           June 30, 2014 June 30, 2014 
----------------------------------------------------------------------------
Supply portfolio management freight accrual                                 
 and other adjustments related to 2013                      -           8.1 
Supply portfolio management freight accrual                                 
 and other adjustments related to 2014                    0.7           9.9 
----------------------------------------------------------------------------
Total supply portfolio management freight                                   
 accrual and other adjustments                            0.7          18.0 
U.S. refined fuels inventory costing                                        
 adjustment related to 2013                                 -          (7.8)
----------------------------------------------------------------------------
Total                                                     0.7          10.2 
Energy services EBITDA from operations as                                   
 reported                                                17.2          89.4 
----------------------------------------------------------------------------
Energy services EBITDA from operations                                      
 adjusted for above items                                17.9          99.6 
----------------------------------------------------------------------------

OPERATING RESULTS

Energy Services

Energy Services' condensed operating results for 2015 and 2014:


----------------------------------------------------------------------------
                                     Three months ended    Six months ended 
                                                June 30             June 30 
(millions of dollars)                    2015   2014(4)      2015   2014(4) 
----------------------------------------------------------------------------
Revenue(1)                              361.5     518.4     979.4   1,457.9 
Cost of sales(1)                       (265.6)   (426.2)   (700.9) (1,177.0)
----------------------------------------------------------------------------
Gross profit                             95.9      92.2     278.5     280.9 
Less: Cash operating and                                                    
 administrative costs(1)                (81.4)    (74.3)   (180.7)   (181.3)
----------------------------------------------------------------------------
EBITDA from operations(2)(3)             14.5      17.9      97.8      99.6 
Net earnings(2)(3)                        7.4       1.2      94.6      82.0 
----------------------------------------------------------------------------
(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) For the three and six months ended June 30, 2014, Energy Services       
    restructuring cost of $9.3 million and $11.1 million, respectively, have
    been excluded from EBITDA from operations. See "Non-GAAP Restructuring  
    Costs" for further details.                                             
(3) EBITDA from operations is a Non-GAAP financial measure. See "Non-GAAP   
    Financial Measures" and "Reconciliation of Net Earnings to EBITDA from  
    Operations".                                                            
(4) June 30, 2014 amounts have been adjusted. See "Prior Period Adjustments 
    Details".                                                               

Revenues for the second quarter of 2015 were $361.5 million, a decrease of $156.9 million or 30% from revenues of $518.4 million in 2014. The decrease in revenues was primarily due to lower commodity prices as compared to the prior year quarter. The average wholesale cost of propane in the second quarter of 2015 was 62% lower than the prior year quarter. Total gross profit for the second quarter of 2015 was $95.9 million, an increase of $3.7 million or 4% as compared to the prior year quarter. The increase in gross profit was primarily due to higher U.S. refined fuels distribution gross profits, offset in part by lower contribution from other services. A summary and detailed review of gross profit is provided below.


Gross Profit Detail                                                         
----------------------------------------------------------------------------
                                      Three months ended   Six months ended 
                                                 June 30            June 30 
(millions of dollars)                     2015   2014(1)      2015  2014(1) 
----------------------------------------------------------------------------
Canadian propane distribution             47.7      47.5     136.1    137.8 
U.S. refined fuels distribution           30.7      26.4     105.0     87.4 
Other services                             7.2       8.2      14.1     17.3 
Supply portfolio management                6.7       7.0      18.0     39.6 
Fixed-price energy services                3.6       3.1       5.3     (1.2)
----------------------------------------------------------------------------
Total gross profit                        95.9      92.2     278.5    280.9 
----------------------------------------------------------------------------
(1) June 30, 2014 amounts have been adjusted. See "Prior Period Adjustments 
    Details".                                                               

Canadian Propane Distribution

Canadian propane distribution gross profit for the second quarter was $47.7 million, consistent with the prior year quarter. Average weather across Canada for the second quarter, as measured by degree days, was 12% warmer than the prior year and 8% warmer than the five-year average. Due to the seasonal nature of heating related volumes, weather in the second quarter did not have a material impact on sales volumes.

Residential sales volumes were consistent with the prior year as colder than average temperatures experienced in Eastern Canada more than offset the impact of warmer than average temperatures in Western Canada. Industrial sales volumes decreased by 18 million litres or 12% due to lower oil field demand due to reduced customer activity as a result of the decline in crude oil prices and warmer than average temperatures in Western Canada. Commercial sales volumes decreased 9 million litres or 17% due to warmer than average temperatures in Western Canada relative to the record or near record low average temperatures experienced through the majority of Canada in the prior year quarter, which more than offset the benefit of colder temperatures in Eastern Canada.

Average propane sales margins for the second quarter increased to 20.9 cents per litre from 18.6 cents per litre in the prior year quarter. Average sales margins in the second quarter of 2015 benefitted from a low price environment for the wholesale cost of propane, improved sales mix and the impact of ongoing pricing management initiatives.


Canadian Propane Distribution Sales Volumes                                 
Volumes by End-Use Application         Volumes by Region(1)                 
----------------------------------------------------------------------------
           Three months ended June 30             Three months ended June 30
(millions of                           (millions of                         
 litres)               2015      2014   litres)               2015      2014
----------------------------------------------------------------------------
Residential              18        19  Western Canada          115       140
Commercial               43        52  Eastern Canada           89        92
Agricultural              7         7  Atlantic Canada          24        23
Industrial              137       155                                       
Automotive               23        22                                       
----------------------------------------------------------------------------
                        228       255                          228       255
----------------------------------------------------------------------------
Volumes by End-                                                             
 Use Application                       Volumes by Region(1)                 
----------------------------------------------------------------------------
             Six months ended June 30               Six months ended June 30
(millions of                           (millions of                         
 litres)               2015      2014   litres)               2015      2014
----------------------------------------------------------------------------
Residential              75        79  Western Canada          337       400
Commercial              153       170  Eastern Canada          254       251
Agricultural             25        25  Atlantic Canada          61        58
Industrial              359       398                                       
Automotive               40        37                                       
----------------------------------------------------------------------------
                        652       709                          652       709
----------------------------------------------------------------------------
(1) Regions: Western Canada region consists of British Columbia, Alberta,   
    Saskatchewan, Manitoba, Northwest Ontario, Yukon and Northwest          
    Territories; Eastern Canada region consists of Ontario (except for      
    Northwest Ontario) and Quebec; and Atlantic Canada region consists of   
    New Brunswick, Newfoundland & Labrador, Nova Scotia and Prince Edward   
    Island.                                                                 

U.S. Refined Fuels Distribution

U.S. refined fuels distribution gross profit for the second quarter was $30.7 million, an increase of $4.3 million or 16% from the prior year quarter. The increase in gross profit was due primarily to higher average sales margins, offset in part by lower volumes. Average weather in the Northeastern U.S., as measured by heating degree days, for the second quarter was 10% warmer than the prior year quarter and 4% warmer than the 5-year average. Similar to the Canadian propane business, the impact of weather on the second quarter results is typically not material due to the seasonal nature of heating related volumes.

Sales volumes of 338 million litres were 9 million litres or 3% lower than the prior year quarter due primarily to decreased commercial volumes. Commercial sales volumes were lower due to warmer weather and decreased agricultural volumes as a result of unfavourable weather conditions.

Average U.S. refined fuels sales margins of 9.1 cents per litre increased from 7.6 cents per litre in the prior year quarter. Sales margins were positively impacted by the lower wholesale cost of propane and heating oil, ongoing price and supply management initiatives, the implementation of a standardized delivery charge for residential propane customers, and favourable foreign exchange translation contribution.


U.S. Refined Fuels Distribution Sales Volumes                               
Volumes by End-Use Application(1)      Volumes by Region(2)                 
-------------------------------------  -------------------------------------
           Three months ended June 30             Three months ended June 30
(millions of                           (millions of                         
 litres)               2015      2014   litres)               2015      2014
-------------------------------------  -------------------------------------
                                       Northeast United                     
Residential              38        40   States                 338       347
Commercial              167       177                                       
Wholesale               133       130                                       
-------------------------------------  -------------------------------------
                        338       347                          338       347
-------------------------------------  -------------------------------------
Volumes by End-Use Application(1)      Volumes by Region(2)                 
-------------------------------------  -------------------------------------
             Six months ended June 30               Six months ended June 30
(millions of           2015      2014  (millions of                         
 litres)                                litres)               2015      2014
-------------------------------------  -------------------------------------
Residential             193       204  Northeast United                     
                                        States                 831       839
Commercial              389       388                                       
Wholesale               249       247                                       
-------------------------------------  -------------------------------------
                        831       839                          831       839
-------------------------------------  -------------------------------------
(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 $7.2 million in the second quarter, a decrease of $1.0 million from the prior year quarter due primarily to a significant reduction in service technicians in the U.S. refined fuels business as part of the restructuring activities in 2013 and 2014.

Supply Portfolio Management

Supply portfolio management gross profits were $6.7 million in the second quarter, a decrease of $0.3 million from the prior year quarter. Results in the current year quarter benefitted from the reduced wholesale cost of propane compared to the prior year quarter. Market trading opportunities were consistent with the prior year quarter. Superior anticipates that annual profitability for the supply portfolio management business in 2015 will be consistent with 2014.


Fixed-Price Energy Services                                                 
Fixed-Price Energy Services Gross Profit                                    
----------------------------------------------------------------------------
(millions of                Three months ended            Three months ended
 dollars except                  June 30, 2015                 June 30, 2014
volume and per      Gross                        Gross                      
 unit amounts)     Profit    Volume   Per Unit  Profit     Volume   Per Unit
----------------------------------------------------------------------------
Natural gas(1)        2.4    4.7 GJ       51.1     2.1     4.7 GJ       44.7
                                      cents/GJ                      cents/GJ
Electricity(2)        1.2 145.1 KWh       0.83     1.0   156.5KWh       0.64
                                     cents/KWh                     cents/KWh
----------------------------------------------------------------------------
Total                 3.6                          3.1                      
----------------------------------------------------------------------------
(millions of                                                                
 dollars except                                                             
 volume and per               Six months ended              Six months ended
 unit amounts)                   June 30, 2015                 June 30, 2014
                                                                            
                    Gross                        Gross                      
                   Profit    Volume   Per Unit  Profit     Volume   Per Unit
----------------------------------------------------------------------------
Natural gas(1)        3.3    9.4 GJ       35.1    (0.5)    9.3 GJ       (5.4
                                      cents/GJ                     cents)/GJ
Electricity(2)        2.0 288.0 KWh       0.69    (0.7)  400.9KWh      (0.17
                                     cents/KWh                    cents)/KWh
----------------------------------------------------------------------------
Total                 5.3                         (1.2)                     
----------------------------------------------------------------------------
(1) Natural gas volumes are expressed in thousands of gigajoules (GJ).      
(2) Electricity volumes are expressed in thousands of kilowatt hours (KWh). 

Fixed-price energy services gross profit was $3.6 million in the second quarter, an increase of $0.5 million from the prior year quarter. Natural gas gross profit was $2.4 million, an increase of $0.3 million from the prior year quarter due to higher margins. Natural gas gross profit per unit was 51.1 cents per gigajoule (GJ), an increase of 6.4 cents per GJ from the prior year quarter due to positive balancing gains related to favourable supply prices in the current quarter. Sales volumes of natural gas were 4.7 million GJ, consistent with the prior year quarter. Electricity gross profit in the second quarter of 2015 was $1.2 million, modestly higher than the prior year quarter.

Operating Costs - Energy Services

Energy Services cash operating and administrative costs were $81.4 million in the second quarter of 2015, an increase of $7.1 million or 10% from the prior year quarter. The increase in expenses was primarily due to the impact from a stronger U.S. dollar on the translation of U.S. denominated expenses and the inclusion of a $3.7 million one-time litigation and insurance settlement recognized in the prior year quarter, offset in part by the reduced headcount and operational improvements from The Superior Way initiatives.

Financial Outlook

EBITDA from operations for 2015 for the Energy Services business is anticipated to be consistent to modestly higher than in 2014, consistent with the forecast provided in the first quarter 2015. EBITDA from the Canadian propane and U.S. refined fuels businesses will benefit from ongoing operational improvements. Operating costs as a percentage of gross profits are anticipated to continue to improve in 2015 due to a full year run rate of business initiatives and The Superior Way project. Gross profits in the Canadian Propane and U.S. refined fuels business are anticipated to be consistent with 2014 with the exception of industrial related gross profits in the Canadian propane business.

Superior is forecasting a modest reduction in gross profits related to oil and gas sales volumes within the Canadian propane business as a result of ongoing volatility in crude oil. Gross profit from the supply portfolio management business is anticipated to be similar to 2014 whereas gross profit from the fixed-price energy business will be higher in 2015 than in 2014 due to the absence of losses that resulted from the temperatures experienced in the first quarter of 2014. Average weather, as measured by degree days, for the remainder of 2015 is anticipated to be consistent with the 5-year average period. Operating conditions for 2015 are anticipated to be similar to 2014 with the exception of the decline in the wholesale cost of propane which Superior anticipates will persist throughout 2015.

Specialty Chemicals

Specialty Chemicals' condensed operating results for 2015 and 2014:


----------------------------------------------------------------------------
(millions of                                                                
 dollars            Three months ended June 30     Six months ended June 30 
except per metric                                                           
 tonne (MT)                                                                 
 amounts)                   2015          2014           2015          2014 
----------------------------------------------------------------------------
                        $ per MT      $ per MT       $ per MT      $ per MT 
Chemical                                                                    
 revenue(1)         142.0    729  166.3    716   319.9    766  325.4    716 
Chemical cost of                                                            
 sales(1)           (90.8)  (466)(102.7)  (442) (195.3)  (468)(193.8)  (426)
----------------------------------------------------------------------------
Chemical gross                                                              
 profit              51.2    263   63.6    274   124.6    298  131.6    290 
Less: Cash                                                                  
 operating and                                                              
 administrative                                                             
 costs(1)           (41.2)  (211) (38.9)  (168)  (84.1)  (201) (77.3)  (170)
----------------------------------------------------------------------------
EBITDA from                                                                 
 operations(2)       10.0     52   24.7    106    40.5     97   54.3    120 
Chemical volumes                                                            
sold (thousands of                                                          
MTs)                         195           232            418           454 
----------------------------------------------------------------------------
(1) In order to better reflect the results of its operations, Superior has  
    reclassified certain amounts for purposes of this MD&A related to       
    derivative financial instruments, non-cash amortization and foreign     
    currency translation losses or gains related to U.S.-denominated working
    capital. See "Reconciliation of Divisional Segmented Revenue, Cost of   
    Sales and Cash Operating and Administrative Costs Included in this MD&A"
    for detailed amounts.                                                   
(2) EBITDA from operations is a Non-GAAP financial measure. See "Non-GAAP   
    Financial Measures" and "Reconciliation of Net Earnings to EBITDA from  
    Operations".                                                            

Chemical revenue for the second quarter of $142.0 million was $24.3 million or 15% lower than in the prior year quarter due primarily to a decrease in sodium chlorate sales volumes and average gross margins and a decrease in chloralkali average realized sales prices including the impact of foreign currency hedge contracts. Sodium chlorate sales volumes were 22% lower than the prior year quarter due to reduced customer demand as a result of extended pulp producer maintenance downtime in the second quarter relative to maintenance in prior years. Chloralkali sales prices, before the impact of foreign currency hedging contracts, for chlorine were higher than the prior year, for caustic were consistent to modestly higher than the prior year, and for hydrochloric acid were materially lower than the prior year.

Second quarter gross profit of $51.2 million was $12.4 million lower than in the prior year quarter due primarily to lower sodium chlorate and chloralkali gross profits. Sodium chlorate gross profits decreased due to higher electricity costs and a reduction in average realized selling prices. Realized average selling prices include the impact of existing foreign currency hedge contracts. Selling prices excluding the impact of foreign currency hedging contracts were higher than the prior year. Gross margin per tonne was also negatively impacted by a higher mix of international sales volumes. Chloralkali gross profits were lower than the prior year quarter due to higher electricity costs and a higher proportion of lower margin hydrochloric acid sales volumes compared to higher margin caustic sales volumes in the prior year quarter.

Cash operating and administrative costs of $41.2 million were $2.3 million or 6% higher than in the prior year quarter due to impact of a weaker Canadian dollar on the translation of U.S. dollar denominated expenses and general inflationary increases.

Superior's foreign currency hedge contracts for the 2015 fiscal year were entered into in prior years when the Canadian dollar was stronger relative to the U.S. dollar. As a result, Superior's effective U.S. exchange rate for 2015 is approximately 1.04 per Canadian dollar for 1.00 U.S. dollar. Beginning in 2016, lower value foreign currency contracts roll-off and Superior's effective U.S. exchange rate will significantly improve which is expected to result in incremental consolidated earnings of $15 to $20 million in 2016 relative to 2015. See "Financial Instruments - Risk Management" in Superior's 2015 second quarter MD&A for a summary of Superior's foreign currency hedge contracts.

Strategic Supply Agreement

As previously disclosed, Specialty Chemicals has provided notification that it will not be nominating any volume for fiscal 2016 related to its 130,000MT sodium chlorate supply agreement with Tronox. During the second quarter, Tronox provided formal notification to Superior that it will be commencing with a decommissioning of the facility upon completion of Superior's 2015 supply requirements. The decommissioning of the facility will result in the acceleration of certain fees, requiring Superior to make a payment to Tronox of approximately US $3.3 million in the first quarter of 2016.

With Tronox determining that it will cease sodium chlorate manufacturing at the Hamilton, Mississippi facility, the supply and demand fundamentals for North American sodium chlorate would largely be balanced when current exports are taken into consideration. The potential for an improved supply and demand balance beginning in 2016 provides an improved environment for Superior to recover production cost increases, particularly electricity cost increases, that Superior has had to absorb over the last several years.

Financial Outlook

Superior expects EBITDA from operations for 2015 to be approximately $30 million lower than in 2014. Superior's forecast for its Specialty Chemicals business at the end of the first quarter of 2015 was for results in 2015 to be modestly lower than in 2014. The reduction in the 2015 forecast is a result of lower than anticipated actual results in the second quarter of 2015, in addition to a reduction in the anticipated contribution for the third and fourth quarters of 2015. The reduction in the forecast for the second half of 2015 is due in part to lower than previously anticipated sodium chlorate gross profits as a result of a modest reduction in sales volumes and lower chloralkali gross profits as a result of a decrease in hydrochloric acid contribution.

The reduction in sodium chlorate sales volumes is due largely to the impact of a stronger U.S. dollar which has increased the selling price of pulp, resulting in upwards pressure on the price of paper and other pulp derivatives which is causing reduced demand and therefore reduced demand for pulp and sodium chlorate.

Chloralkali gross profits are now anticipated to be weaker than previously disclosed due to additional weakness in hydrochloric acid sales volumes and pricing. Superior has determined that its previous forecast for hydrochloric acid selling prices and volumes was not conservative enough. Since the first quarter of 2015, there has been intense pressure on both pricing and sales volumes. Although pricing has generally been consistent with management's expectations, there have been greater than anticipated volume declines as inventories from other geographies are being sold into Superior's markets.

Sales prices and sales volumes of caustic and chlorine are consistent with the previously provided forecast and are anticipated to be modestly higher than the prior year. Supply and demand fundamentals in the chloralkali markets in which Superior operates are anticipated to remain similar to 2014 with the exception of hydrochloric acid as noted above.

In addition to the significant assumptions detailed above, refer to "Risk Factors to Superior" for a detailed review of the significant business risks affecting Superior's Specialty Chemicals' segment.

Construction Products Distribution

Construction Products Distribution's condensed operating results for 2015 and 2014:


----------------------------------------------------------------------------
                                     Three months ended    Six months ended 
                                                June 30             June 30 
(millions of dollars)                    2015      2014      2015      2014 
----------------------------------------------------------------------------
Revenue(1)                              238.9     209.0     456.1     394.8 
Cost of sales(1)                       (179.4)   (158.4)   (343.0)   (296.7)
----------------------------------------------------------------------------
Gross profit                             59.5      50.6     113.1      98.1 
Less: Cash operating and                                                    
 administrative costs                   (46.8)    (42.6)    (96.4)    (85.6)
----------------------------------------------------------------------------
EBITDA from operations(2)                12.7       8.0      16.7      12.5 
Net earnings(2)                          10.8       7.2      12.8       9.9 
----------------------------------------------------------------------------
(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) EBITDA from operations is a Non-GAAP financial measure. See "Non-GAAP   
    Financial Measures" and "Reconciliation of Net Earnings to EBITDA from  
    Operations".                                                            

Revenues of $238.9 million for the second quarter of 2015 were $29.9 million or 14% higher than in the prior year quarter due to increased gypsum and commercial and industrial insulation (C&I) revenues. Gypsum revenues were higher than the prior year quarter due to improved U.S. sales volumes as a result of ongoing improvements in the U.S. residential construction sector, higher average selling prices and the impact of a stronger U.S. dollar on the translation of U.S. denominated revenues. Canadian revenues were higher than the prior year quarter due to improved weather and operating conditions compared to the prior quarter which was partially offset by a modestly decline in gross margins due to competitive pressures. Commercial and industrial insulation (C&I) revenues increased over the prior year quarter due to higher industrial market activity, improvements in U.S. end-use markets, an increase in market share due to investments in sales and marketing and the impact of a stronger U.S. dollar on the translation of U.S. denominated revenues.

Gross profits of $59.5 million in the second quarter were $8.9 million or 18% higher than in the prior year quarter primarily due to improved sales volumes, higher average selling prices and the impact of the stronger U.S. dollar. Average sales margins were higher than the prior year quarter due to ongoing pricing and procurement initiatives, improved market conditions and the timing of the recognition of rebates in 2015 compared to 2014, which more than offset the impact of a higher mix of large industrial projects.

Cash operating and administrative costs were $46.8 million in the second quarter, an increase of $4.2 million or 10% from the prior year quarter. The increase was primarily due to higher sales volumes and the impact of the stronger U.S. dollar on the translation of U.S. denominated operating costs.

System Integration

CPD has approved and begun a systems integration project that will replace two legacy ERP systems with a single, standardized solution. The updated system will provide enhanced procurement, pricing and operational effectiveness, enabling CPD to further improve margins and operating costs once complete. CPD anticipates that the project will be completed over the next two years at a total cost of approximately US$22 million which is split between capital investment of US$12 million and one-time operating costs of US$10 million (US$3 million 2015 and US$7 million 2016). Operating Superior anticipates that approximately 60% of these costs will be incurred in 2015 with the remainder in 2016. Total costs incurred to date are US$2.7 million consisting of US$2.1 million in capital and US$0.6 million in operating expense.

Financial Outlook

Superior anticipates that EBITDA from operations in 2015 will be higher than in 2014 due to continued improvements in the U.S. residential market, the product expansion of drywall into ceiling-only branches and benefits resulting from ongoing pricing and procurement initiatives. Superior anticipates that the U.S. commercial market will be modestly improved in 2015 compared to 2014 and that the Canadian residential market will continue to be challenging.

In addition to the Construction Products Distribution segment's significant assumptions detailed above, refer to "Risk Factors to Superior" for a detailed review of the significant business risks affecting Superior's Construction Products Distribution segment.


Consolidated Capital Expenditure Summary                                    
----------------------------------------------------------------------------
                                     Three months ended    Six months ended 
                                                June 30             June 30 
(millions of dollars)                    2015      2014      2015      2014 
----------------------------------------------------------------------------
Efficiency, process improvement and                                         
 growth-related                          12.4      14.8      17.3      25.3 
Other capital                             5.1      10.5      14.0      16.8 
----------------------------------------------------------------------------
                                         17.5      25.3      31.3      42.1 
Proceeds on disposition of capital                                          
 and intangible assets                   (0.6)     (4.2)     (1.1)     (4.6)
Proceeds from finance lease                                                 
 arrangement termination                    -      (8.2)        -      (8.2)
Acquisitions                              1.6         -       1.6         - 
----------------------------------------------------------------------------
Total net capital expenditures           18.5      12.9      31.8      29.3 
Investment in finance leases              9.6       5.6      10.2       6.5 
----------------------------------------------------------------------------
Total expenditures including finance                                        
 leases                                  28.1      18.5      42.0      35.8 
----------------------------------------------------------------------------

Efficiency, process improvement and growth related expenditures were $12.4 million in the second quarter compared to $14.8 million in the prior year quarter. The decrease compared to prior year is due primarily to the completion of expansion projects at Specialty Chemicals in late 2014. Efficiency, process improvement and growth-related expenditures in 2015 are primarily related to Energy Services' purchases of rental assets and truck related expenditures. Other capital expenditures were $5.1 million in the second quarter compared to $10.5 million in the prior year quarter, consisting primarily of required maintenance and general capital across all of Superior's segments. Proceeds on the disposition of capital were $0.6 million in the second quarter and consisted of Superior's disposition of surplus tanks, cylinders and property. During the second quarter Superior entered into new leases with a capital equivalent value of $9.6 million primarily related to delivery vehicles for the Energy Services and Construction Products Distribution segments. Expenditures related to the acquisition of Warner's Gas Service Inc. in the second quarter of 2015 amounted to $1.6 million. See Note 4 to the unaudited condensed consolidated financial statements for further details.

Corporate and Interest Costs

Corporate costs for the second quarter were $2.2 million, compared to $6.0 million in the prior year quarter. The $3.8 million decrease was primarily due to reduced long-term incentive plan costs relative to the prior year quarter as a result of fluctuations in Superior's share price. Additionally, corporate costs in the prior year quarter included one-time costs associated with the potential CPD sales process.

Interest expense on borrowing and finance lease obligations for the second quarter was $11.1 million, compared to $11.6 million in the prior year quarter. The modest decrease was due to lower average interest rates and lower average debt levels. Superior's average interest rate was positively impacted by settlements on interest rate swaps which more than offset the impact of higher rates due to Superior's 7-year, $200 million, 6.50% senior unsecured note offering which closed on December 9, 2014. Superior anticipates that interest costs will be consistent with the prior year for the remaining two quarters of 2015 due to reduced debt levels and lower effective interest rates.

Superior Plus Office Relocation

As previously disclosed, Superior will be relocating its corporate office to Toronto, Ontario from the current location of Calgary, Alberta during the second half of 2015. The relocation of the corporate office will provide closer proximity for Superior's corporate executive team to Superior's operating businesses. Superior's President and Chief Executive Officer and Chief Legal Officer, along with other members of Superior's corporate team will be relocating to Toronto as part of the corporate office relocation.

Retirement of Wayne Bingham

As disclosed on June 17, 2015, Mr. Wayne Bingham, Chief Financial Officer (CFO), is expected to retire no later than February 2016. Mr. Bingham joined Superior in the capacity of CFO in October 2006. Mr. Bingham will remain with Superior until February 2016 or until his retirement date to assist in the transition of the new CFO as well as the corporate office relocation to Toronto which is anticipated in the fourth quarter of 2015. Superior has commenced a search for a successor to Mr. Bingham.

Non-GAAP Restructuring Costs

Superior's restructuring costs incurred during 2014 were categorized together and excluded from segmented results. Below is a table summarizing these costs for comparative purposes:


----------------------------------------------------------------------------
                                      Three months ended    Six months ended
                                                 June 30             June 30
(millions of dollars)                     2015      2014      2015      2014
----------------------------------------------------------------------------
Severance costs                              -       4.8         -       5.2
Branch closure costs and lease                                              
 termination costs                           -       2.0         -       2.0
Consulting costs                             -       2.5         -       3.9
----------------------------------------------------------------------------
Total restructuring costs                    -       9.3         -      11.1
----------------------------------------------------------------------------

Restructuring costs incurred during 2014 and 2013 consisted of both costs included in, and excluded from, the restructuring provision. Superior incurred $9.3 million of restructuring costs during the second quarter 2014 related to employee severance costs and consulting costs at Energy Services. Total restructuring costs incurred during 2014 and 2013 in order to complete the restructuring projects were $26.6 million.

Income Taxes

Total income tax recovery for the second quarter was $3.2 million and consists of $0.6 million in cash income tax expense and $3.7 million in deferred income tax recovery, compared to a total income tax expense of $3.0 million in the prior year quarter, which consisted of $0.5 million in cash income tax expense and a $2.5 million deferred income tax expense.

Cash income tax expense for the second quarter was $0.6 million and consisted of income tax expense in the U.S. of $0.6 million (2014 Q2 - $0.5 million of U.S. cash tax expense). Deferred income tax recovery for the second quarter was $3.7 million (2014 Q2 - $3.0 million deferred income tax expense), resulting in a corresponding net deferred income tax asset of $257.6 million as at June 30, 2015. The deferred income tax recovery was due to the impact of the increase in statutory rates in Alberta on deferred tax.

Canada Revenue Agency (CRA) Income Tax Update

As previously disclosed, on April 2, 2013, Superior received, from the CRA, Notices of Reassessment for Superior's 2009 and 2010 taxation years reflecting the CRA's intent to challenge the tax consequences of Superior's corporate conversion transaction ("Conversion") which occurred on December 31, 2008. Subsequently on November 7, 2014, Superior received the Notices of Reassessment for the 2011 to 2013 taxation years. The CRA's position is based on the acquisition of control rules and the general anti-avoidance rules in the Income Tax Act (Canada).

The table below summarizes Superior's estimated tax liabilities and payment requirements associated with the received and anticipated Notices of Reassessment. Upon receipt of the Notices of Reassessment, 50% of the taxes payable pursuant to such Notice of Reassessment must be remitted to the CRA.


----------------------------------------------------------------------------
                            Taxes Payable   50% of the Taxes     Month/Year 
Taxation Year                      (1)(2)       Payable(1)(2)   Paid/Payable
----------------------------------------------------------------------------
2009/2010                       $13.0                    $6.5     April 2013
2011                            $12.8                    $6.4  February 2015
2012                             $8.8                    $4.4  February 2015
2013                             $9.4                    $4.7  February 2015
2014                            $13.0(3)                 $6.5           2015
2015                            $12.0(3)                 $6.0           2016
----------------------------------------------------------------------------
Total                           $69.0                   $34.5               
----------------------------------------------------------------------------
(1) In millions of dollars.                                                 
(2) Includes estimated interest and penalties.                              
(3) Estimated based on Superior's previously filed tax returns, 2014        
    financial results and the midpoint of Superior's 2015 outlook.          

On May 8, 2013 and August 7, 2013, respectively, Superior filed a Notice of Objection and a Notice of Appeal with respect to the Notice of Reassessments received on April 2, 2013. On February 4, 2015, Superior filed a Notice of Objection with respect to the Notice of Reassessments received on November 7, 2014. Superior anticipates that if the case proceeds in the Tax Court of Canada, the case could be heard within two years, with a decision rendered six to twelve months after completion of the court hearings. If a decision of the Tax Court of Canada were to be appealed, the appeal process could reasonably be expected to take an additional two years. If Superior receives a positive decision then any taxes, interest and penalties paid to the CRA will be refunded plus interest. If Superior is unsuccessful, then any remaining taxes payable plus interest and penalties will have to be remitted to the CRA.

Superior remains confident in the appropriateness of its tax filing position and the expected tax consequences of the Conversion and intends to vigorously defend such position and to file its future tax returns on a basis consistent with its view of the outcome of the Conversion.

Interim tax payments made by Superior will be recorded to the balance sheet and will not materially impact either AOCF or net earnings.

Based on the midpoint of Superior's 2015 financial outlook of AOCF per share of $1.75, if the tax pools from the Conversion were not available to Superior, the impact would be an increase to cash income taxes of approximately $12.0 million or $0.09 per share for 2015. As previously stated, Superior intends to file its future income tax returns on a basis consistent with its view of the outcome of the Conversion.

Financial Outlook

As previously disclosed on July 23, 2015, Superior's 2015 financial outlook of AOCF per share has been reduced to $1.65 to $1.85 from $1.80 to $2.10 per share as provided in the first quarter of 2015. The reduction in the 2015 financial outlook is due to a reduced outlook for the Specialty Chemicals business for the second half of 2015 in addition to lower than expected results for the second quarter of 2015. The reduction in the outlook and second quarter results for the Specialty Chemicals business is due to weaker than anticipated hydrochloric acid pricing and sales volumes and a reduction in second quarter sodium chlorate sales volumes due to longer than anticipated pulp mill plant maintenance closures.

Achieving Superior's adjusted operating cash flow depends on the operating results of its three operating segments.

In addition to the operating results of Superior's three operating segments, significant assumptions underlying Superior's 2015 outlook are:


--  Economic growth in the U.S. is expected to be similar to or modestly
    higher than in 2014 and growth in Canada is anticipated to be similar to
    modestly lower than in 2014; 
--  Superior is expected to continue to attract capital and obtain financing
    on acceptable terms; 
--  Superior's estimated total debt to EBITDA ratio is based on maintenance
    and growth related expenditures of $91.0 million in 2015 and working
    capital funding requirements which do not contemplate any significant
    commodity price changes; 
--  As at July 31, 2015, Superior is substantively hedged for its estimated
    U.S. dollar exposure for 2015, and due to the hedge position, a change
    in the Canadian to U.S, dollar exchange rate for 2015 would not have a
    material impact to Superior. The foreign currency exchange rate between
    the Canadian dollar and US dollar is expected to average 0.80 in 2015 on
    all unhedged foreign currency transactions; 
--  Financial and physical counterparties are expected to continue
    fulfilling their obligations to Superior; 
--  Regulatory authorities are not expected to impose any new regulations
    impacting Superior; 
--  Superior's average interest rate on floating-rate debt is expected to
    remain consistent with 2014 levels; and 
--  Canadian and U.S. based cash taxes are expected to be minimal for 2015
    based on existing statutory income tax rates and the ability to use
    available tax basis. 

Energy Services


--  Average weather across Canada and the Northeast U.S, as measured by
    degree days, for 2015 is anticipated to be consistent with the 5-year
    average period; 
--  Total propane and U.S. refined fuels-related sales volumes are expected
    to decrease modestly in 2015 due primarily to lower oilfield customer
    demand related to the decline in the price of oil and lower residential
    volumes as weather is expected to be consistent with the five-year
    average, partially offset by customer growth initiatives and retention
    programs; 
--  Wholesale propane and U.S. refined fuels-related prices are not
    anticipated to significantly affect demand for propane and refined fuels
    and related services; 
--  Supply portfolio management gross profit for 2015 is expected to be
    consistent with normalized 2014 gross profit; 
--  Fixed-price energy services results for 2015 are expected to increase
    from 2014 due to assumptions weather will be consistent with the five-
    year average, and the absence of market challenges experienced during
    the first quarter of 2014; and 
--  Operating costs are expected to decrease in 2015 from 2014 due to
    improvements in operational efficiencies from the completion of
    restructuring activities. 

Specialty Chemicals


--  Sodium chlorate contribution will decrease from 2014 due to lower sales
    volumes, higher electricity and plant operating costs; 
--  Chloralkali contribution will decrease from 2014 due to lower sales
    prices for hydrochloric acid and caustic. The chloralkali segment will
    have higher sales volumes associated with the completion of the Port
    Edwards and Saskatoon HCl burner expansions. Sales volumes of caustic
    soda, potassium caustic and hydrochloric acid are anticipated to be
    modestly higher than in 2014. Supply and demand fundamentals in the
    chloralkali markets in which Superior operates are anticipated to remain
    similar to 2014 with the exception of hydrochloric acid as noted above;
    and 
--  Average plant utilization will approximate 90%-95% in 2015. 

Construction Products Distribution


--  Revenues will increase over 2014 due to continued growth in U.S.-based
    GSD sales as the U.S. residential market continues to improve, higher
    C&I sales revenue due to improvement in the U.S. industrial construction
    segment, a stronger U.S. dollar, and the product expansion of drywall
    into ceiling-only branches. Canada revenue will grow modestly as the
    Canadian residential market remains challenging; 
--  Sales margins will increase from 2014 due to the continued focus on
    price management, customer profitability and procurement. Gross profit
    for 2015 will increase due to higher revenue and higher gross margins;
    and 
--  Operating costs as a percentage of revenue will be comparable to 2014
    due to anticipated savings from restructuring efforts and other cost
    management activities, offset in part by investments in sales and supply
    chain capability and system integration costs. Operating costs will
    increase modestly from 2014 due to higher sales volumes and activity,
    partially offset by further improvements in operational efficiency
    related to restructuring in 2013 and 2014. 

Debt Management Update

Superior remains focused on managing both its total debt and its total debt to EBITDA. Superior is currently forecasting a total debt to EBITDA ratio at December 31, 2015 of 3.4 X to 3.8X compared to the previously provided range of 3.0X to 3.4X forecast at the first quarter of 2015.

Superior's anticipated debt repayment for 2015 and total debt to EBITDA leverage ratio as at December 31, 2015, based on Superior's 2015 financial outlook is detailed in the chart below.


----------------------------------------------------------------------------
                                                  Dollar Per    Millions of 
                                                       Share        Dollars 
----------------------------------------------------------------------------
2015 financial outlook AOCF per share -                                     
 midpoint (1)                                           1.75          222.0 
Maintenance capital expenditures, net                  (0.39)         (50.0)
Capital lease obligation repayments                    (0.20)         (25.0)
----------------------------------------------------------------------------
Cash flow available for dividends and debt                                  
 repayment before growth capital                        1.16          147.0 
Growth capital expenditures                            (0.21)         (27.0)
CPD system integration costs                           (0.11)         (14.0)
Tax payments to CRA (50%)                              (0.17)         (22.0)
----------------------------------------------------------------------------
Estimated 2015 free cash flow available for                                 
 dividends and debt repayment                           0.67           84.0 
Conversion of 7.50% convertible debentures to                               
 equity-callable no earlier than October 31,                                
 2015                                                   0.59           75.0 
Dividends                                              (0.72)         (92.0)
----------------------------------------------------------------------------
Total estimated reduction in debt                       0.54           67.0 
Estimated total debt to EBTIDA as at December                               
 31, 2015                                        3.4X - 3.8X    3.4X - 3.8X 
----------------------------------------------------------------------------
                                                                            
Dividends                                               0.72           92.0 
Calculated payout ratio after maintenance                                   
 capital and capital lease repayments                     62%            62%
Calculated payout ratio after all capital                                   
 (excluding tax payments to CRA)                          86%            86%
----------------------------------------------------------------------------
(1) See "Financial Outlook" for additional details including assumptions,   
    definitions and risk factors.                                           

In addition to Superior's significant assumptions detailed above, refer to "Risk Factors to Superior" for a detailed review of Superior's significant business risks.

Liquidity and Capital Resources

Superior's revolving syndicated bank facility (credit facility), term loans and finance lease obligations (collectively borrowing) before deferred financing fees totaled $656.1 million as at June 30, 2015, an increase of $122.9 million from December 31, 2014 .The increase in borrowing was primarily due to the redemption of the $172.5 million 5.75% debentures, offset in part by cash flow from operating activities.

On June 20, 2014, and November 26, 2014 Superior extended the maturity date of its credit facility to June 27, 2018. Financial covenant ratios were unchanged with a consolidated secured debt to consolidated EBITDA ratio and a consolidated debt to consolidated EBITDA ratio of 3.0x and 5.0x, respectively. Superior maintains the flexibility to expand the facility up to $750.0 million. See "Summary of Cash Flow" for details on Superior's sources and uses of cash.

On December 9, 2014, Superior completed an offering of $200.0 million 6.50% senior unsecured notes (senior notes). The senior notes were issued at par value and mature on December 9, 2021. The senior notes contain certain early redemption options under which Superior has the option to redeem all or a portion of the senior notes at various redemption prices, which include the principal amount plus accrued and unpaid interest, if any, to the applicable redemption date. Interest is payable semi-annually on June 9 and December 9, commencing June 9, 2015. Under the terms of the agreement, Superior must maintain a fixed-charge coverage ratio of no less than 2.0 to 1.0. As at June 30, 2015, the fixed-charge coverage ratio for purposes of this agreement was 4.5 to 1.0.

As at June 30, 2015, debentures (before deferred issuance fees and discount values) issued by Superior totaled $316.3 million, $177.9 million lower than December 31, 2014 due to the $172.5 million redemption of the 5.75% debentures plus costs and interest. See Note 13 to the unaudited condensed consolidated financial statements for additional details on Superior's debentures.

Consolidated net working capital was $247.9 million as at June 30, 2015, a decrease of $16.9 million from net working capital of $264.8 million as at December 31, 2014. The decrease was due primarily to the seasonal decline in net working capital requirements at Energy Services, offset in part by higher net working capital requirements at CPD related to the pickup in U.S. construction activity. Superior's net working capital requirements are financed from its credit facility.

As at June 30, 2015, when calculated in accordance with the credit facility, the consolidated secured debt to compliance EBITDA ratio was 1.6 to 1.0 (December 31, 2014 - 1.2 to 1.0) and the consolidated debt to compliance EBITDA ratio was 2.3 to 1.0 (December 31, 2014 - 1.9 to 1.0). For both of these covenants, debentures are excluded. These ratios are within the requirements of Superior's debt covenants. In accordance with the credit facility, Superior must maintain a consolidated secured debt to compliance EBITDA ratio of not more than 3.0 to 1.0 and not more than 3.5 to 1.0 as a result of acquisitions.

In addition, Superior must maintain a consolidated debt to compliance EBITDA ratio of not more than 5.0 to 1.0, excluding debentures. Superior's total debt to compliance EBITDA ratio was 3.4 to 1.0 as at June 30, 2015. Also, Superior is subject to several distribution tests and the most restrictive stipulates that distributions (including debenture holders and related payments) cannot exceed compliance EBITDA less cash income taxes, plus $35.0 million on a trailing 12-month rolling basis. On a 12-month rolling basis as at June 30, 2015, Superior's available distribution amount was $150.0 million under the above noted distribution test.

As of June 30, 2015, US$30 million of U.S. notes, issued October 29, 2003 by way of private placement, were outstanding. On March 30, 2010, certain financial covenant ratios of the U.S. Note Agreement were amended to make them consistent with the financial covenant ratios under the amended credit facility other than the exclusion of any obligations owing under an accounts receivable securitization program from the calculation of consolidated secured debt for purposes of the consolidated secured debt to compliance EBITDA ratio calculation.

On June 29, 2015, Standard & Poor's confirmed Superior and Superior LP's long-term corporate credit rating of BB and the senior secured debt rating of BBB-. The outlook rating for Superior remains stable. On June 26, 2015, Dominion Bond Rating Service confirmed Superior LP's senior secured rating of BB (high) and Superior LP's senior unsecured rating of BB (low). The trend for both ratings is stable.

As at June 30, 2015, Superior had an estimated defined benefit pension solvency deficiency of approximately $9.0 million (December 31, 2014 - $12.3 million) and a going concern surplus of approximately $28.0 million (December 31, 2014 - surplus of $22.6 million). Funding requirements required by applicable pension legislation are based upon going concern and solvency actuarial assumptions. These assumptions differ from the going concern actuarial assumptions used in Superior's financial statements. Superior has sufficient liquidity through its existing credit facility and anticipated future operating cash flow to fund this deficiency over the prescribed period.

In the normal course of business, Superior is subject to lawsuits and claims. Superior believes the resolution of these matters will not have a material adverse effect, individually or in the aggregate, on Superior's liquidity, consolidated financial position or results of operations. Superior records costs as they are incurred or when they become determinable.

Shareholders' Capital

The weighted average number of common shares issued and outstanding at the end of the second quarter was 126.4 million shares, which was a 0.2 million increase from the prior year quarter related to conversions of the 7.50% debentures in 2015.

As at July 30, 2015, June 30, 2015 and December 31, 2014, the following common shares and securities convertible into common shares were issued and outstanding:


----------------------------------------------------------------------------
                         July 30, 2015     June 30, 2015   December 31, 2014
                      Convertible       Convertible       Convertible       
(millions of dollars)  Securities Shares Securities Shares Securities Shares
----------------------------------------------------------------------------
Common shares                                                               
 outstanding                       126.4             126.4             126.2
5.75% Debentures(1)             -      -          -      -     $172.5    9.1
6.00% Debentures(2)        $150.0    9.9     $150.0    9.9     $150.0    9.9
7.50% Debentures(3)         $69.3    6.1      $69.3    6.1      $74.7    6.6
6.00% Debentures(4)         $97.0    5.8      $97.0    5.8      $97.0    5.8
----------------------------------------------------------------------------
Shares outstanding and                                                      
 issuable upon                                                              
 conversion of                                                              
 debentures                        148.2             148.2             157.6
----------------------------------------------------------------------------
(1) Convertible at $19.00 per share.                                        
(2) Convertible at $15.10 per share.                                        
(3) Convertible at $11.35 per share.                                        
(4) Convertible at $16.75 per share.                                        

Dividends Paid to Shareholders

Dividends paid to Superior's shareholders depend on its cash flow from operating activities with consideration for Superior's changes in working capital requirements, investing activities and financing activities. See "Summary of Adjusted Operating Cash Flow" and "Summary of Cash Flow" for additional details.

On October 30, 2014, Superior announced that its monthly dividend would be increased by 20% to $0.06 per share or $0.72 per share on an annualized basis from the previous dividend of $0.05 or $0.60 per share on an annualized basis. Dividends paid to shareholders for 2015 were $45.5 million or $0.36 per share compared to $37.9 million or $0.30 per share in 2014. The increase of $7.6 million was due to the higher dividend rate. See "Debt Management Update" for further details. Dividends to shareholders are declared at the discretion of Superior's Board of Directors.

Summary of Cash Flows

Superior's primary sources and uses of cash are detailed below(1):


----------------------------------------------------------------------------
                                     Three months ended    Six months ended 
                                                June 30             June 30 
(millions of dollars)                    2015      2014      2015      2014 
----------------------------------------------------------------------------
                                                                            
Cash flow from operating activities      42.2      98.1     154.4     144.3 
Investing activities(2):                                                    
  Purchase of property, plant and                                           
   equipment                            (17.5)    (25.3)    (31.3)    (42.1)
  Proceeds from finance lease                                               
   arrangement termination                  -       8.2         -       8.2 
  Proceeds from disposal of                                                 
   property, plant and equipment and                                        
   intangible assets                      0.6       4.2       1.1       4.6 
  Acquisitions                           (1.6)        -      (1.6)        - 
----------------------------------------------------------------------------
Cash flow used in investing                                                 
 activities                             (18.5)    (12.9)    (31.8)    (29.3)
----------------------------------------------------------------------------
                                                                            
Financing activities:                                                       
  Net provision from (repayment of)                                         
   revolving term bank credits and                                          
   other debt                           161.7     (65.0)    106.6     (65.0)
  Redemption of 5.75% convertible                                           
   debentures                          (172.5)        -    (172.5)        - 
  Repayment of finance lease                                                
   obligation                            (5.3)     (5.0)    (10.3)     (9.7)
  Dividends paid to shareholders        (22.8)    (19.0)    (45.5)    (37.9)
----------------------------------------------------------------------------
Cash flow used in financing                                                 
 activities                             (38.9)    (89.0)   (121.7)   (112.6)
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
Net (decrease) increase in cash and                                         
 cash equivalents                       (15.2)     (3.8)      0.9       2.4 
Cash and cash equivalents, beginning                                        
 of period                               20.0      14.6       3.1       8.3 
Effect of translation of foreign                                            
 currency-denominated cash and cash                                         
 equivalents                             (0.2)     (0.3)      0.6      (0.2)
----------------------------------------------------------------------------
Cash and cash equivalents, end of                                           
 period                                   4.6      10.5       4.6      10.5 
----------------------------------------------------------------------------
(1) See the consolidated statement of cash flow for additional details.     
(2) See "Consolidated Capital Expenditure Summary" for additional details.  

Financial Instruments - Risk Management

Derivative and non-financial derivatives are used by Superior to manage its exposure to fluctuations in foreign currency exchange rates, interest rates, share-based compensation and commodity prices. Superior assesses the inherent risks of these instruments by grouping derivative and non-financial derivatives related to the exposures these instruments mitigate. Superior's policy is not to use derivative or non-financial derivative instruments for speculative purposes. Superior does not formally designate its derivatives as hedges and, as a result, Superior does not apply hedge accounting and is required to designate its derivatives and non-financial derivatives as held for trading. Refer to Superior's 2014 Annual MD&A for further details on financial instrument risk management.

As at June 30, 2015, Superior has substantively hedged its estimated U.S. dollar exposure for 2015 and 78% for 2016. Due to the hedge position, a change in the Canadian to U.S, dollar exchange rate for 2015 would not have a material impact to Superior. A summary of Superior's U.S. dollar forward contracts for 2015 and beyond is provided in the table below.


----------------------------------------------------------------------------
                                                                            
(US$ millions except exchange                                2020 and       
 rates)                         2015  2016   2017  2018  2019   later Total 
----------------------------------------------------------------------------
Energy Services - US$ forward                                               
 sales                          11.0     -      -     -     -       -  11.0 
Construction Products                                                       
 Distribution - US$ forward                                                 
 sales                          14.0  33.0   24.0     -     -       -  71.0 
Specialty Chemicals - US$                                                   
 forward sales                  86.0 164.4  123.0  96.0  48.0       - 517.4 
Energy Services - US$ forward                                               
 purchases                      (4.0) (4.9)     -     -     -       -  (8.9)
----------------------------------------------------------------------------
Net US$ forward sales          107.0 192.5  147.0  96.0  48.0       - 590.5 
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
Energy Services - Average US$                                               
 forward sales rate             1.08     -      -     -     -       -  1.08 
Construction Products                                                       
 Distribution - Average US$                                                 
 forward sales rate             1.11  1.14   1.20     -     -       -  1.16 
Specialty Chemicals - Average                                               
 US$ forward sales rate         1.03  1.10   1.13  1.20  1.20       -  1.12 
Energy Services - US$ forward                                               
 purchases rate                 1.23  1.23      -     -     -       -  1.23 
----------------------------------------------------------------------------
Net average external US$/CDN$                                               
 exchange rate                  1.04  1.10   1.15  1.20  1.20       -  1.13 
----------------------------------------------------------------------------

For additional details on Superior's financial instruments, including the amount and classification of gains and losses recorded in Superior's second quarter condensed consolidated financial statements, summary of fair values, notional balances, effective rates and terms, and significant assumptions used in the calculation of the fair value of Superior's financial instruments, see Note 14 to the unaudited condensed consolidated financial statements.

Changes in Internal Controls over Financial Reporting

Superior's Management is responsible for establishing and maintaining disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as those terms are defined in National Instrument 52-109 "Certification of Disclosure in Issuers' Annual and Interim Filings". The objective of this instrument is to improve the quality, reliability and transparency of information that is filed or submitted under securities legislation.

Superior's President and Chief Executive Officer (CEO) and the Executive Vice President and Chief Financial Officer (CFO), with the assistance of Superior employees, have designed DC&P and ICFR to provide reasonable assurance that material information relating to Superior's business is communicated to them, reported on a timely basis, financial reporting is reliable, and the financial statements for external purposes are in accordance with IFRS.

During the second quarter of 2015, there were no changes made to Superior's ICFR that materially affected, or are reasonably likely to materially affect, Superior's ICFR.

Critical Accounting Policies and Estimates

Superior's unaudited condensed consolidated financial statements have been prepared in accordance with IFRS. The significant accounting policies are described in the unaudited condensed consolidated financial statements for the period ended June 30, 2015. Certain of these accounting policies, as well as estimates made by management in applying such policies, are recognized as critical because they require management to make subjective or complex judgments about matters that are inherently uncertain. Our critical accounting estimates relate to the allowance for doubtful accounts, employee future benefits, future income tax assets and liabilities, the valuation of derivatives and non-financial derivatives and asset impairments and the assessment of potential provision retirement obligations.

Recent Accounting Pronouncements

Certain new standards, interpretations, amendments or improvements to existing standards were issued by the IASB or the International Financial Reporting Interpretations Committee (IFRIC) that are mandatory for accounting periods beginning on January 1, 2015 or later. The affected standards are consistent with those disclosed in Superior's 2014 annual consolidated financial statements.

New and revised IFRS standards issued but not yet effective

IFRS 9 - Financial Instruments: Classification and Measurement

IFRS 9 was issued in November 2009 and is intended to replace IAS 39 - Financial Instruments: Recognition and Measurement. IFRS 9 uses a single approach to determine whether a financial asset is measured at amortized cost or fair value, replacing the multiple rules in IAS 39. The approach in IFRS 9 is based on how an entity manages its financial instruments in the context of its business model and the contractual cash flow characteristics of the financial assets. The new standard also requires a single impairment method to be used, replacing the multiple impairment methods in IAS 39. Requirements for financial liabilities were added in October 2010 and they largely carried forward existing requirements in IAS 39 except that fair value changes due to credit risk for liabilities designated at fair value through profit and loss would generally be recorded in other comprehensive income. Another revised version of IFRS 9 was issued in July 2014 to include impairment requirements for financial assets and limited amendments to the classification and measurement requirements by introducing the fair value through other comprehensive income measurement category for certain simple debt instruments. This standard must be applied for accounting periods beginning on or after January 1, 2018, with earlier adoption permitted. Superior is assessing the effect of IFRS 9 on its financial results and financial position; changes, if any, are not expected to be material.

IFRS 15 - Revenue from Contracts with Customers

In May 2014, IFRS 15 was issued, establishing a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. IFRS 15 supersedes the current revenue recognition guidance including IAS 18 - Revenue, IAS 11 - Construction Contracts and the related interpretation when it becomes effective. Under IFRS 15, an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. An entity is required to recognize revenue when the performance obligation is satisfied. Either a full or modified retrospective application is required for annual periods beginning on or after January 1, 2018 with early adoption permitted. Superior is currently assessing the impact of IFRS 15 and plans to adopt the new standard on the required effective date.

IAS 16 and IAS 38 - Property, Plant and Equipment and Intangible Assets

The amendments to IAS 16 prohibit entities from using a revenue-based depreciation method for items of property, plant, and equipment. The amendments to IAS 38 introduce a rebuttable presumption that revenue is not an appropriate basis for amortization of an intangible asset. This presumption can only be rebutted in the event when the intangible asset is expressed as a measure of revenue or, when it can be demonstrated that revenue and consumption of the economic benefits of the intangible assets are highly correlated. This standard must be applied for accounting periods beginning on or after January 1, 2016, with earlier adoption permitted. Superior currently amortizes property, plant and equipment and intangible assets using the straight-line method and therefore, does not anticipate the application of these amendments to IAS 16 and IAS 18 having a material impact on Superior's consolidated financial statements.

Non-GAAP Financial Measures

Throughout the MD&A, Superior has used the following terms that are not defined by GAAP, but are used by management to evaluate performance of Superior and its business. Since Non-GAAP financial measures do not have standardized meaning prescribed by GAAP and are therefore unlikely to be comparable to similar measures presented by other companies, securities regulations require that Non-GAAP financial measures are clearly defined, qualified and reconciled to their nearest GAAP financial measures. Except as otherwise indicated, these Non-GAAP financial measures are calculated and disclosed on a consistent basis from period to period. Specific adjusting items may only be relevant in certain periods.

The intent of Non-GAAP financial measures is to provide additional useful information to investors and analysts and the measures do not have any standardized meaning under IFRS. The measures should not, therefore, be considered in isolation or used in substitute for measures of performance prepared in accordance with IFRS. Other issuers may calculate Non-GAAP financial measures differently.

Investors should be cautioned that EBITDA and AOCF should not be construed as alternatives to net earnings, cash flow from operating activities or other measures of financial results determined in accordance with GAAP as an indicator of Superior's performance.

Non-GAAP financial measures are identified and defined as follows:

Adjusted Operating Cash Flow

AOCF is equal to cash flow from operating activities as defined by IFRS, adjusted for changes in non-cash working capital, other expenses, non-cash interest expense, current income taxes and finance costs. Superior may deduct or include additional items in its calculation of AOCF; these items would generally, but not necessarily, be items of a non-recurring nature. AOCF is the main performance measure used by management and investors to evaluate Superior's performance. AOCF represents cash flow generated by Superior that is available for, but not necessarily limited to, changes in working capital requirements, investing activities and financing activities of Superior.

The seasonality of Superior's individual quarterly results must be assessed in the context of annualized AOCF. Adjustments recorded by Superior as part of its calculation of AOCF include, but are not limited to, the impact of the seasonality of Superior's businesses, principally the Energy Services segment, by adjusting for non-cash working capital items, thereby eliminating the impact of the timing between the recognition and collection/payment of Superior's revenues and expenses, which can differ significantly from quarter to quarter. Adjustments are also made to reclassify the cash flow related to natural gas and electricity customer contract-related costs in a manner consistent with the income statement's recognition of these costs. AOCF is reconciled to net cash flow from operating activities on page 13.

EBITDA

EBITDA represents earnings before taxes, depreciation, amortization, finance expense and certain other non-cash expenses, and is used by Superior to assess its consolidated results and those of its operating segments. The EBITDA of Superior's operating segments may be referred to as EBITDA from operations. Net earnings before income taxes are reconciled to EBITDA from operations on page 34.

Compliance EBITDA

Compliance EBITDA represents earnings before interest, taxes, depreciation, amortization and certain other non-cash expenses calculated on a 12-month trailing basis, giving pro forma effect to acquisitions and divestitures, and is used by Superior to calculate compliance with its debt covenants and other credit information. See Note 16 to the audited consolidated financial statements for a reconciliation of net earnings to compliance EBITDA.

Payout Ratio

Payout ratio represents dividends as a percentage of AOCF less other capital expenditures, and is used by Superior to assess its financial results and leverage. Payout ratio is not a defined performance measure under GAAP. Superior's calculation of payout ratio may differ from similar calculations used by comparable entities. See page 26 "Debt Management Summary" for Superior's anticipated payout ratio for 2015.


Quarterly Financial and Operating Information                               
GAAP Measures                                                               
----------------------------------------------------------------------------
(millions of                                                                
 dollars except                                                             
 per share and                                                              
 volume amounts) 2015 Quarters         2014 Quarters(2)        2013 Quarters
                ------------------------------------------------------------
                Second   First  Fourth   Third  Second   First  Fourth Third
----------------------------------------------------------------------------
Canadian propane                                                            
 sales volumes                                                              
 (millions of                                                               
 litres)           228     424     377     230     255     454     405   232
U.S. refined                                                                
 fuels sales                                                                
 volumes                                                                    
 (millions of                                                               
 litres)           338     494     407     335     347     492     411   326
Natural gas                                                                 
 sales volumes                                                              
 (millions of                                                               
 GJs)                5       5       4       4       5       5       5     5
Electricity                                                                 
 sales volumes                                                              
 (millions of                                                               
 KwH)              145     143     137     139     157     244     228   249
Chemical sales                                                              
 volumes                                                                    
 (thousands of                                                              
 MT)               195     223     231     224     232     223     220   204
Revenues         743.9 1,006.6   956.8   841.4   895.4 1,282.3 1,034.7 813.8
Gross profit     192.8   289.7   244.9   188.4   196.0   290.2   240.8 184.9
Net (loss)                                                                  
 earnings         40.9    (9.8)   36.5   (42.4)    5.9    50.1    10.9  35.9
Per share, basic $0.32  $(0.08)  $0.34  $(0.34)  $0.05   $0.40   $0.09 $0.28
Per share,                                                                  
 diluted         $0.25  $(0.08) $(0.03) $(0.34) ($0.02)  $0.34   $0.05 $0.12
Net working                                                                 
 capital(1)      247.9   273.6   264.1   225.1   248.9   345.8   293.1 202.0
----------------------------------------------------------------------------
(1) Net working capital reflects amounts as at the quarter-end and is       
    comprised of trade and other receivables, prepaid expenses and          
    inventories, less trade and other payables, deferred revenue, and       
    dividends and interest payable.                                         
(2) The first and second quarters of 2014 have been adjusted and include the
    impact of the first and second quarter 2014 adjustments. See "Prior     
    Period Adjustment Details".                                             


                                                                            
Non-GAAP Measures                                                           
----------------------------------------------------------------------------
(millions of dollars                                                        
 except per share                                                           
 amounts)             2015 Quarters      2014 Quarters(1)      2013 Quarters
                     -------------------------------------------------------
                      Second  First Fourth  Third Second  First Fourth Third
----------------------------------------------------------------------------
Adjusted operating                                                          
 cash flow              23.3   95.2   83.3   22.7   23.2   95.9   55.9  24.2
Per share, basic       $0.18  $0.75  $0.68  $0.18  $0.18  $0.76  $0.44 $0.19
Per share, diluted     $0.18  $0.73  $0.66  $0.18  $0.18  $0.73  $0.43 $0.19
Adjusted operating                                                          
 cash flow before                                                           
 restructuring costs    23.3   95.2   83.5   22.7   32.5   97.7   70.1  24.4
Per share, basic       $0.18  $0.75  $0.68  $0.18  $0.26  $0.77  $0.56 $0.19
Per share, diluted     $0.18  $0.73  $0.66  $0.18  $0.26  $0.75  $0.54 $0.19
----------------------------------------------------------------------------
(1) The first and second quarters of 2014 have been adjusted and include the
    impact of the first and second quarter 2014 adjustment. See "Prior      
    Period Adjustment Details".                                             


                                                                            
Reconciliation of Net Earnings Before Income Taxes to EBITDA From           
 Operations(1)(2)                                                           
----------------------------------------------------------------------------
                                                                Construction
For the three months ended June 30, 2015     Energy Specialty       Products
 (millions of dollars)                     Services Chemicals   Distribution
----------------------------------------------------------------------------
Net Earnings before income taxes                7.4       1.5           10.8
Add: Depreciation included in selling,                                      
 distribution and administrative costs and                                  
 amortization of intangible assets             13.0         -            1.7
  Depreciation included in cost of sales          -      15.3              -
  Customer contract-related costs              (0.3)        -              -
  Losses on disposal of assets                 (0.3)        -              -
  Finance expense                               0.7       0.2            0.2
  Unrealized (gains) losses on derivative                                   
   financial instruments                       (6.0)     (7.0)             -
----------------------------------------------------------------------------
EBITDA from operations                         14.5      10.0           12.7
----------------------------------------------------------------------------
                                                                            
                                             Energy             Construction
For the three months ended June 30, 2014  Services( Specialty       Products
 (millions of dollars)                           3) Chemicals   Distribution
----------------------------------------------------------------------------
Net Earnings before income taxes                1.2      13.1            7.2
Add: Depreciation included in selling,                                      
 distribution and administrative costs and                                  
 amortization of intangible assets             10.0         -            0.5
  Depreciation included in cost of sales          -      12.1              -
  Customer contract-related costs              (0.3)        -              -
  Losses on disposal of assets                 (3.9)        -            0.1
  Restructuring costs                           9.3         -              -
  Finance expense                               0.8       0.2            0.2
  Unrealized gains on derivative financial                                  
   instruments                                  0.8      (0.7)             -
----------------------------------------------------------------------------
EBITDA from operations                         17.9      24.7            8.0
----------------------------------------------------------------------------
                                                                            
                                                                Construction
For the six months ended June 30, 2015       Energy Specialty       Products
 (millions of dollars)                     Services Chemicals   Distribution
----------------------------------------------------------------------------
Net Earnings before income taxes               94.6      13.2           12.8
Add: Depreciation included in selling,                                      
 distribution and administrative costs and                                  
 amortization of intangible assets             25.9         -            3.5
  Depreciation included in cost of sales          -      28.8              -
  Customer contract-related costs              (0.7)        -              -
  Losses on disposal of assets                    -       0.2              -
  Finance expense                               1.3       0.4            0.4
  Unrealized gains on derivative financial                                  
   instruments                                (23.3)     (2.1)             -
----------------------------------------------------------------------------
EBITDA from operations                         97.8      40.5           16.7
----------------------------------------------------------------------------
                                                                            
                                             Energy             Construction
For the six months ended June 30, 2014    Services( Specialty       Products
 (millions of dollars)                           3) Chemicals   Distribution
----------------------------------------------------------------------------
Net Earnings before income taxes               82.0      30.0            9.9
Add: Depreciation included in selling,                                      
 distribution and administrative costs and                                  
 amortization of intangible assets             20.6         -            2.1
  Depreciation included in cost of sales          -      24.0              -
  Customer contract-related costs              (0.7)        -              -
  Losses on disposal of assets                 (3.9)        -            0.1
  Restructuring costs                          11.1         -              -
  Finance expense                               1.5       0.5            0.4
  Unrealized gains on derivative financial                                  
   instruments                                (11.0)     (0.2)             -
----------------------------------------------------------------------------
EBITDA from operations                         99.6      54.3           12.5
----------------------------------------------------------------------------
(1) See the unaudited condensed consolidated financial statements for net   
    earnings before income taxes, depreciation of property, plant,          
    equipment, intangible assets and accretion of convertible debenture     
    issuance costs, depreciation included in cost of sales, customer        
    contract-related costs and unrealized gains or losses on derivative     
    financial instruments.                                                  
(2) See "Non-IFRS Financial Measures" for additional details.               
(3) June 30, 2014 amounts have been adjusted. See "Prior Period Adjustments 
    Details".                                                               
                                                                            
Reconciliation of Divisional Segmented Revenue, Cost of Sales and Cash      
 Operating and Administrative Costs Included in this MD&A                   
----------------------------------------------------------------------------
                                                 For the three months ended 
                                                              June 30, 2015 
                                                               Construction 
                                      Energy      Specialty        Products 
                                    Services      Chemicals    Distribution 
----------------------------------------------------------------------------
Revenue per financial                                                       
 statements                            361.5          143.5           238.9 
  Foreign currency losses                                                   
   related to working capital              -           (1.5)              - 
----------------------------------------------------------------------------
Revenue per the MD&A                   361.5          142.0           238.9 
----------------------------------------------------------------------------
                                                                            
Cost of products sold per                                                   
 financial statements                 (265.6)        (106.1)         (179.4)
  Non-cash amortization                    -           15.3               - 
----------------------------------------------------------------------------
Cost of products sold per the                                               
 MD&A                                 (265.6)         (90.8)         (179.4)
----------------------------------------------------------------------------
                                                                            
Gross profit                            95.9           51.2            59.5 
                                                                            
Cash selling, distribution and                                              
 administrative costs per                                                   
 financial statements                  (93.8)         (42.7)          (48.5)
  Amortization and                                                          
   depreciation expenses                13.0              -             1.7 
  Losses on disposal of assets          (0.3)             -               - 
  Customer contract-related                                                 
   costs                                (0.3)             -               - 
  Restructuring costs                      -              -               - 
  Reclassification of foreign                                               
   currency losses related to                                               
   working capital                         -            1.5               - 
----------------------------------------------------------------------------
Cash operating and                                                          
 administrative costs per the                                               
 MD&A                                  (81.4)         (41.2)          (46.8)
----------------------------------------------------------------------------

                                                                            
Reconciliation of Divisional Segmented Revenue, Cost of Sales and Cash      
 Operating and Administrative Costs Included in this MD&A                   
----------------------------------------------------------------------------
                                                For the three months ended  
                                                              June 30, 2014 
                                                               Construction 
                                      Energy      Specialty        Products 
                                Services (1)      Chemicals    Distribution 
----------------------------------------------------------------------------
Revenue per financial                                                       
 statements                            518.4          168.0           209.0 
  Foreign currency losses                                                   
   related to working capital              -           (1.7)              - 
----------------------------------------------------------------------------
Revenue per the MD&A                   518.4          166.3           209.0 
----------------------------------------------------------------------------
                                                                            
Cost of products sold per                                                   
 financial statements                 (426.2)        (114.8)         (158.4)
  Non-cash amortization                    -           12.1               - 
----------------------------------------------------------------------------
Cost of products sold per the                                               
 MD&A                                 (426.2)        (102.7)         (158.4)
----------------------------------------------------------------------------
                                                                            
Gross profit                            92.2           63.6            50.6 
                                                                            
Cash selling, distribution and                                              
 administrative costs per                                                   
 financial statements                  (89.4)         (40.6)          (43.2)
  Amortization and                                                          
   depreciation expenses                10.0              -             0.5 
  Losses on disposal of assets          (3.9)             -             0.1 
  Customer contract-related                                                 
   costs                                (0.3)             -               - 
  Restructuring costs                    9.3              -               - 
  Reclassification of foreign                                               
   currency losses related to                                               
   working capital                         -            1.7               - 
----------------------------------------------------------------------------
Cash operating and                                                          
 administrative costs per the                                               
 MD&A                                  (74.3)         (38.9)          (42.6)
----------------------------------------------------------------------------
(1) June 30, 2014 amounts have been adjusted. See "Prior Period Adjustments 
    Details".                                                               
                                                                            
----------------------------------------------------------------------------
                                                   For the six months ended 
                                                              June 30, 2015 
                                                               Construction 
                                      Energy      Specialty        Products 
                                    Services      Chemicals    Distribution 
----------------------------------------------------------------------------
Revenue per financial                                                       
 statements                            979.4          315.0           456.1 
  Foreign currency gains                                                    
   related to working capital              -            4.9               - 
----------------------------------------------------------------------------
Revenue per the MD&A                   979.4          319.9           456.1 
----------------------------------------------------------------------------
                                                                            
Cost of products sold per                                                   
 financial statements                 (700.9)        (224.1)         (343.0)
  Non-cash amortization                    -           28.8               - 
----------------------------------------------------------------------------
Cost of products sold per the                                               
 MD&A                                 (700.9)        (195.3)         (343.0)
----------------------------------------------------------------------------
                                                                            
Gross profit                           278.5          124.6           113.1 
                                                                            
Cash selling, distribution and                                              
 administrative costs per                                                   
 financial statements                 (205.9)         (79.4)          (99.9)
  Amortization and                                                          
   depreciation expenses                25.9              -             3.5 
  Losses on disposal of assets             -            0.2               - 
  Customer contract-related                                                 
   costs                                (0.7)             -               - 
  Restructuring costs                      -              -               - 
  Reclassification of foreign                                               
   currency gains related to                                                
   working capital                         -           (4.9)              - 
----------------------------------------------------------------------------
Cash operating and                                                          
 administrative costs per the                                               
 MD&A                                 (180.7)         (84.1)          (96.4)
----------------------------------------------------------------------------

----------------------------------------------------------------------------
                                                  For the six months ended  
                                                              June 30, 2014 
                                                               Construction 
                                      Energy      Specialty        Products 
                                 Services(1)      Chemicals    Distribution 
----------------------------------------------------------------------------
Revenue per financial                                                       
 statements                          1,457.9          325.0           394.8 
  Foreign currency gains                                                    
   related to working capital              -            0.4               - 
----------------------------------------------------------------------------
Revenue per the MD&A                 1,457.9          325.4           394.8 
----------------------------------------------------------------------------
                                                                            
Cost of products sold per                                                   
 financial statements               (1,177.0)        (217.8)         (296.7)
  Non-cash amortization                    -           24.0               - 
----------------------------------------------------------------------------
Cost of products sold per the                                               
 MD&A                               (1,177.0)        (193.8)         (296.7)
----------------------------------------------------------------------------
                                                                            
Gross profit                           280.9          131.6            98.1 
                                                                            
Cash selling, distribution and                                              
 administrative costs per                                                   
 financial statements                 (208.4)         (76.9)          (87.8)
  Amortization and                                                          
   depreciation expenses                20.6              -             2.1 
  Losses on disposal of assets          (3.9)             -             0.1 
  Customer contract-related                                                 
   costs                                (0.7)             -               - 
  Restructuring costs                   11.1              -               - 
  Reclassification of foreign                                               
   currency gains related to                                                
   working capital                         -           (0.4)              - 
----------------------------------------------------------------------------
Cash operating and                                                          
 administrative costs per the                                               
 MD&A                                 (181.3)         (77.3)          (85.6)
----------------------------------------------------------------------------

Risk Factors to Superior

The risks factors and uncertainties detailed below are a summary of Superior's assessment of its material risk factors as detailed in Superior's 2014 Annual Information Form under "Risk Factors" which is filed on the Canadian Securities Administrators' website, www.sedar.com, and on Superior's website, www.superiorplus.com.

Risks to Superior

Superior depends entirely on the operations and assets of Superior LP. Superior's ability to make dividend payments to its shareholders depends on Superior LP's ability to make distributions on its outstanding limited partnership units, as well as on the operations and business of Superior LP.

There is no assurance regarding the amount of cash to be distributed by Superior LP or generated by Superior LP and, therefore, there is no assurance regarding funds available for dividends to shareholders. The amount distributed in respect of the limited partnership units will depend on a variety of factors including, without limitation, the performance of Superior LP's operating businesses, the effect of acquisitions or dispositions on Superior LP, and other factors that may be beyond the control of Superior LP or Superior. In the event significant sustaining capital expenditures are required by Superior LP or the profitability of Superior LP declines, there would be a decrease in the amount of cash available for dividends to shareholders and such decrease could be material.

Superior's dividend policy and the distribution policy of Superior LP are subject to change at the discretion of the Board of Directors of Superior or the Board of Directors of Superior General Partner Inc., the general partner of Superior LP, as applicable. Superior's dividend policy and the distribution policy of Superior LP are also limited by contractual agreements including agreements with lenders to Superior and its affiliates and by restrictions under corporate law.

As previously disclosed, On April 2, 2013, Superior received, from the CRA, Notices of Reassessment for Superior's 2009 and 2010 taxation years reflecting the CRA's intent to challenge the tax consequences of the Conversion. Subsequently on November 7, 2014, Superior received the Notices of Reassessment for the 2011 to 2013 taxation years. The CRA's position is based on the acquisition of control rules and the general anti-avoidance rules in the Income Tax Act (Canada). See "CRA Income Tax Update".

On May 8, 2013 and August 7, 2013, respectively, Superior filed a Notice of Objection and a Notice of Appeal with respect to the Notice of Reassessments received on April 2, 2013. On February 4, 2015 Superior filed a Notice of Objection with respect to the Notice of Reassessments received on November 7, 2014. Superior anticipates that if the case proceeds in the Tax Court of Canada, the case could be heard within two years, with a decision rendered six to twelve months after completion of the court hearings. If a decision of the Tax Court of Canada were to be appealed, the appeal process could reasonably be expected to take an additional two years. If Superior receives a positive decision then any taxes, interest and penalties paid to the CRA will be refunded plus interest and if Superior is unsuccessful then any remaining taxes payable plus interest and penalties will have to be remitted.

Superior remains confident in the appropriateness of its tax filing position and the expected tax consequences of the conversion and intends to vigorously defend such position. Superior also strongly believes that there was no acquisition of control of Ballard and that the general anti-avoidance rule does not apply to the conversion and, accordingly, Superior intends to file its future tax returns on a basis consistent with its view of the outcome of the conversion.

Upon receipt of the Notices of Reassessment, 50% of the reassessed taxes payable must be remitted to the CRA. Superior would also be required to make a payment of 50% of the taxes the CRA claims are owed in any future tax year if the CRA were to issue a similar notice of reassessment for such years and Superior were to appeal such other years. See "CRA Income Tax Update" for further details on the amounts paid and estimated amounts payable.

The credit facilities and U.S. notes of Superior LP contain covenants that require Superior LP to meet certain financial tests and that restrict, among other things, the ability of Superior LP to incur additional debt, dispose of assets or pay dividends/distributions in certain circumstances. These restrictions may preclude Superior LP from returning capital or making distributions on the limited partnership units.

The payout by Superior LP of substantially all of its available cash flow means that capital expenditures to fund growth opportunities can only be made in the event that other sources of financing are available. Lack of access to such additional financing could limit the future growth of the business of Superior LP and, over time, have a material adverse effect on the amount of cash available for dividends to shareholders.

To the extent that external sources of capital, including public and private markets, become limited or unavailable, Superior's and Superior LP's ability to make the necessary capital investments to maintain or expand the current business and to make necessary principal payments and debenture redemptions under its term credit facilities may be impaired.

Superior maintains substantial floating interest rate exposure through a combination of floating interest rate borrowing and the use of derivative instruments. Demand levels for approximately half of Energy Services' sales and substantially all of Specialty Chemicals' and Construction Products Distribution's sales are affected by general economic trends. Generally speaking, when the economy is strong, interest rates increase, as does demand from Superior's customers, thereby increasing Superior's sales and its ability to pay higher interest costs, and vice-versa. In this way, there is a common relationship among economic activity levels, interest rates and Superior's ability to pay higher or lower rates. Increased interest rates, however, will affect Superior's borrowing costs, which may have an adverse effect on Superior.

A portion of Superior's net cash flow is denominated in U.S. dollars. Accordingly, fluctuations in the Canadian/U.S. dollar exchange rate can affect profitability. Superior attempts to mitigate this risk with derivative financial instruments.

The timing and amount of capital expenditures incurred by Superior LP or its subsidiaries will directly affect the amount of cash available to Superior for dividends to shareholders. Dividends may be reduced, or even eliminated, at times when significant capital expenditures are incurred or other unusual expenditures are made.

If the Board of Directors of Superior decides to issue additional common shares, preferred shares or securities convertible into common shares, existing shareholders may suffer significant dilution.

There can be no assurance that income tax laws in the numerous jurisdictions in which Superior operates will not be changed, interpreted or administered in a manner which adversely affects Superior and its shareholders. In addition, there can be no assurance that the CRA (or a provincial tax agency), the U.S. Internal Revenue Service (or a state or local tax agency), or the Chilean Internal Revenue Service will agree with how Superior calculates its income for tax purposes or that these various tax agencies reference herein will not change their administrative practices to the detriment of Superior or its shareholders.

As previously disclosed, Superior will be relocating its corporate office to Toronto, Ontario from the current location of Calgary, Alberta during the second half of 2015. The relocation of the corporate office will provide closer proximity for Superior's corporate executive team to Superior's operating businesses. Superior's President and Chief Executive Officer, Chief Financial Officer and Chief Legal Officer, along with other members of Superior's corporate team will be relocating to Toronto as part of the corporate office relocation. The relocation of the corporate office could impact Superior's ability to report financial results in a timely manner. To mitigate this risk, Superior has established a project management team and developed a relocation plan, which will provide for appropriate overlap of existing and new financial reporting staff.

Risks to Superior's Segments

Energy Services

Canadian Propane Distribution and U.S. Refined Fuels

Propane is sold in competition with other energy sources such as fuel oil, electricity and natural gas, some of which are less costly on an energy-equivalent basis. While propane is usually more cost-effective than electricity, electricity is a major competitor in most areas. Fuel oil is also used as a residential, commercial and industrial source of heat and, in general, is less costly on an equivalent-energy basis, although operating efficiencies, environmental and air quality factors help make propane competitive with fuel oil. Except for certain industrial and commercial applications, propane is generally not competitive with natural gas in areas with natural gas service. Other alternative energy sources such as compressed natural gas, methanol and ethanol are available or could be further developed and could have an impact on the future of the propane industry in general and Canadian propane distribution in particular.

The trend towards increased conservation measures and technological advances in energy efficiency may have a detrimental effect on propane demand and Canadian propane distribution's sales. Demand for traditional propane end-use applications is increasing marginally with general economic growth. However, increases in the cost of propane encourage customers to reduce fuel consumption and to invest in more energy efficient equipment, reducing demand.

Automotive propane demand is currently stabilizing after several years of decline but the decline trend could resume depending on propane pricing, the market's acceptance of propane conversion options and the availability of infrastructure.

Competition in the U.S. refined fuels business' markets generally occurs on a local basis between large, full-service, multi-state marketers and smaller, independent local marketers. Marketers primarily compete based on price and service and tend to operate in close proximity to customers, typically within a 35-mile marketing radius from a central depot, in order to minimize delivery costs and provide prompt service.

Weather and general economic conditions affect distillates market volumes. Weather influences the immediate demand for distillates, primarily for heating, while longer-term demand declines due to economic conditions as customers trend towards conservation and supplement heating with alternative sources such as wood pellets. Also, harsh weather can create conditions that exacerbate demand for propane, impede the transportation and delivery of propane, or restrict the ability for Superior to obtain propane from its suppliers. Such conditions may also increase Superior's operating costs and may reduce customers' demand for propane, any of which may have an adverse effect on Superior. Spikes in demand caused by weather or other factors can stress the supply chain and hamper Superior's ability to obtain additional quantities of propane. Transportation providers (rail and truck) have limited ability to provide resources in times of extreme peak demand. Changes in propane supply costs are normally passed through to customers, but timing lags (between when Superior purchases the propane and when the customer purchases the propane) may result in positive or negative gross margin fluctuations.

Superior offers its customers various fixed-price propane and heating oil programs. In order to mitigate the price risk from offering these services, Superior uses its physical inventory position, supplemented by forward commodity transactions with various third parties having terms and volumes substantially the same as its customers' contracts. In periods of high propane price volatility the fixed-price programs create exposure to over or under-supply positions as the demand from customers may significantly exceed or fall short of supply procured. In addition, if propane prices decline significantly subsequent to customers signing up for a fixed-price program, there is a risk that customers will default on their commitments.

Superior's operations are subject to the risks associated with handling, storing and transporting propane in bulk. To mitigate risks, Superior has established a comprehensive environmental, health and safety protection program. It consists of an environmental policy, codes of practice, periodic self-audits, employee training, quarterly and annual reporting and emergency prevention and response.

The U.S. refined fuels business, through a centralized safety and environment management system, ensures that safety practices and regulatory compliance are an important part of its business. The storage and delivery of refined fuels pose the risk of spills which could adversely affect the soil and water of storage facilities and customer properties.

Superior's fuel distribution businesses are based and operate in Canada and the United States and, as a result, such operations could be affected by changes to laws, rules or policies which could either be more favourable to competing energy sources or increase compliance costs or otherwise negatively affect the operations of Energy Services in comparison with such competing energy sources. Any such changes could have an adverse effect on the operations of Energy Services.

Approximately 19% of Superior's Canadian propane distribution business employees and 5% of U.S. refined fuels distribution business employees are unionized. Collective bargaining agreements are renegotiated in the normal course of business. While labour disruptions are not expected, there is always risk associated with the renegotiation process that could have an adverse impact on Superior.

Fixed-price Energy Services Business

There may be new market entrants in the energy retailing business that compete directly for the customer base that Superior targets, slowing or reducing its market share.

Fixed-price energy services purchases natural gas to meet its estimated commitments to its customers based on their historical consumption of gas. Depending on a number of factors, including weather, customer attrition and poor economic conditions affecting commercial customers' production levels, customer natural gas consumption may vary from the volume purchased. This variance must be reconciled and settled at least annually and may require fixed-price energy services to purchase or sell natural gas at market prices, which may have an adverse impact on the results of this business. To mitigate potential balancing risk, fixed-price energy services closely monitors its balancing position and takes measures such as adjusting gas deliveries and transferring gas between pools of customers, minimizing imbalances. The reserve is reviewed monthly to ensure that it is sufficient to absorb any balancing losses.

Fixed-price energy services matches its customers' estimated electricity requirements by entering into electricity swaps. Depending on several factors, including weather, customers' energy consumption may vary from the volumes purchased by fixed-price energy services. Fixed-price energy services is able to invoice existing commercial electricity customers for balancing charges when the amount of energy used is greater or less than the tolerance levels set initially. In certain circumstances, there can be balancing issues for which fixed-price energy services is responsible when customer aggregation forecasts are not realized.

Fixed-price energy services resources its fixed-price term natural gas sales commitments by entering into various physical and financial natural gas and U.S. dollar foreign exchange purchase contracts for similar terms and volumes to create an effective Canadian dollar fixed-price cost of supply. Superior transacts with nine financial and physical natural gas counterparties. There can be no assurance that any of these counterparties will not default on any of their obligations to Superior. The financial condition of each counterparty is, however, evaluated and credit limits are established to minimize Superior's exposure to this risk. There is also a risk that supply commitments and foreign exchange positions may become mismatched; this is monitored daily, however, in compliance with Superior's risk management policy.

Fixed-price energy services must retain qualified sales agents in order to properly execute its business strategy. The continued growth of fixed-price energy services is reliant on the services of agents to sign up new customers. There can be no assurance that competitive conditions will allow these agents to achieve these customer additions. Lack of success in the marketing programs of fixed-price energy services would limit future growth of cash flow.

Fixed-price energy services operates in the highly regulated energy industry in Ontario, Quebec, Alberta and British Columbia. Changes to laws could impact this business' operations. As part of the current regulatory framework, local delivery companies are mandated to perform certain services on behalf of fixed-price energy services, including invoicing, collection, assuming specific bad debt risks, and storage and distribution of natural gas. Any elimination or changes to these rules could have a significant adverse effect on the results of this business.

Specialty Chemicals

Specialty Chemicals competes with sodium chlorate, chloralkali and potassium producers on a worldwide basis. Key competitive factors include price, product quality, logistics capability, reliability of supply, technical capability and service. The end-use markets for products are correlated to the general economic environment and the competitiveness of customers, all of which are outside of the segment's control, along with market pricing for pulp.

Specialty Chemicals has long-term electricity contracts or electricity contracts that renew automatically with power producers in each of the jurisdictions where its plants are located. There is no assurance that Specialty Chemicals will remain able to secure adequate supplies of electricity at reasonable prices or on acceptable terms.

Potassium chloride (KCl) is a major raw material used in the production of potassium hydroxide at the Port Edwards, Wisconsin facility. Substantially all of Specialty Chemicals' KCl is received from Potash Corporation of Saskatchewan. Specialty Chemicals has limited ability to source KCl from additional suppliers.

Specialty Chemicals is exposed to fluctuations in the U.S. dollar and the euro versus the Canadian dollar. Specialty Chemicals manages its exposure to fluctuations between the U.S. dollar and Canadian dollar by entering into hedge contracts with external third parties and internally with other Superior businesses.

Specialty Chemicals' operations involve the handling, production, transportation, treatment and disposal of materials that are classified as hazardous and are regulated by environmental, health and safety laws, regulations and requirements. There is potential for the release of highly toxic and lethal substances, including chlorine from a facility or transportation equipment. Equipment failure could result in damage to facilities, death or injury and liabilities to third parties. If at any time the appropriate regulatory authorities deem any of the segment's facilities unsafe, they may order that such facilities be shut down.

Specialty Chemicals' operations and activities in various jurisdictions require regulatory approval for the handling, production, transportation and disposal of chemical products and waste substances. The failure to obtain or comply fully with such applicable regulatory approval may materially adversely affect Specialty Chemicals.

Specialty Chemicals' does not directly operate or control Tronox's Hamilton, Mississippi sodium chlorate facility. A major production outage or unplanned downtime could harm Specialty Chemicals' reputation and its ability to meet customer requirements.

Specialty Chemicals' production facilities maintain complex process and electrical equipment. The facilities have existed for many years and undergone upgrades and improvements. Routine maintenance is regularly completed to ensure equipment is operated within appropriate engineering and technical requirements. Notwithstanding Specialty Chemicals' operating standards and history of limited downtime, breakdown of electrical transformer or rectifier equipment would temporarily reduce production at the affected facility. Although the segment has insurance to mitigate substantial loss due to equipment outage, Specialty Chemicals' reputation and its ability to meet customer requirements could be harmed by a major electrical equipment failure.

Approximately 25% of Specialty Chemicals' employees are unionized. Collective bargaining agreements are renegotiated in the normal course of business. While labour disruptions are not expected, there is always risk associated with the negotiation process that could have an adverse impact on Superior.

Construction Products Distribution

Activity in the Construction Products Distribution segment is subject to changes in general economic activity and, in particular, residential and non-residential construction. New residential construction is subject to such factors as household income, employment levels, customer confidence, population changes and the local supply of residential units. Residential renovation is not as sensitive to these factors and can provide some balance in the demand for residential construction product distribution. Non-residential activity can be subdivided into commercial, industrial and institutional. New construction in these sectors is subject to many of the same general economic factors as residential activity. In the industrial and institutional subsectors, government and regulatory programs can also have a significant impact on the outlook for product distribution, particularly as related to Superior's insulation businesses. As a result, changes to general economic activity or other factors mentioned above that affect the amount of construction or renovation in residential and non-residential markets can have an adverse effect on the segment's business and Superior.

Construction Products Distribution competes with other specialty construction distributors servicing the builder/contractor market, in addition to big-box home centres and independent lumber yards. The ability to remain competitive depends on the segment's ability to provide reliable service at competitive prices.

The GSD market is driven largely by residential and non-residential construction. Demand for wall and ceiling building materials is affected by changes in general and local economic factors including demographic trends, employment levels, interest rates, consumer confidence and overall economic growth. These factors in turn affect existing housing sales, new home construction, new non-residential construction, and office/commercial space turnover, all of which are significant factors in determining demand for products and services.

The C&I market is driven largely by C&I construction spending and economic growth. Demand is influenced by commercial construction and renovation, the construction, maintenance and expansion of industrial process facilities (such as oil refineries, petrochemical plants and power generation facilities) and institutional facilities in the government, healthcare and education sectors.

The distribution of walls and ceilings and C&I products involves risks, including the failure or substandard performance of equipment, human error, natural disasters, suspension of operations and new government statutes, regulations, guidelines or policies. Operations are also subject to various hazards incidental to the handling, processing, storage and transportation of certain hazardous materials, including industrial chemicals. These hazards can result in personal injury including fatalities, damage to and destruction of property and equipment and environmental damage. There can be no assurance that as a result of past or future operations, there will not be claims of injury by employees or members of the public due to exposure, or alleged exposure, to these materials. There can be no assurance as to the actual amount of these liabilities or their timing, if any. The business maintains safe working practices through proper procedures, direction and utilization of equipment such as forklifts, boom trucks, fabrication equipment and carts/dollies. The business handles and stores a variety of construction materials and maintains appropriate material handling compliance programs in accordance with local, state/provincial and federal regulations.

Construction Products Distribution has approved and begun a system integration project to fully integrate its C&I and GSD enterprise resource planning (ERP) systems. The project will consist of adopting best practice common business processes, and integrating all operations onto a single, standardized ERP system. The updated ERP system will provide enhanced procurement, pricing and operational effectiveness, enabling CPD to further improve margins and operating costs once complete. Business process development in preparation of the implementation is underway. The project is expected to be completed over the next two years. Upon full commencement of the project, the scoping, requirements definition, business process definition, design, and testing of the integrated ERP system could take approximately one year with the branch conversions taking place the following year. Implementation problems could result in disruption to the business and/or inaccurate information for management and financial reporting. Risk will be mitigated by a project governance structure, extensive testing and a regionally phased implementation.

Approximately 5% of Construction Products Distribution's employees are unionized. Collective bargaining agreements are renegotiated in the normal course of business. While labour disruptions are not expected, there is always risk associated with the negotiation process that could have an adverse impact on the segment and Superior.


SUPERIOR PLUS CORP.                                                         
Condensed Consolidated Balance Sheets                                       
                                                     June 30    December 31 
(unaudited, millions of Canadian dollars)    Note       2015           2014 
----------------------------------------------------------------------------
Assets                                                                      
Current Assets                                                              
Cash and cash equivalents                                4.6            3.1 
Trade and other receivables                  5&14      347.6          428.7 
Prepaid expenses                                        46.7           48.2 
Inventories                                            170.9          184.5 
Unrealized gains on derivative financial                                    
 instruments                                   14        5.9           10.7 
----------------------------------------------------------------------------
Total Current Assets                                   575.7          675.2 
----------------------------------------------------------------------------
                                                                            
Non-Current Assets                                                          
Property, plant and equipment                   7      952.8          932.2 
Intangible assets                                       20.8           18.7 
Goodwill                                               195.4          194.2 
Notes and finance lease receivables                      3.1            3.3 
Employee future benefits                                 3.7            3.4 
Deferred tax                                   15      272.8          284.4 
Unrealized gains on derivative financial                                    
 instruments                                   14        1.4            3.5 
----------------------------------------------------------------------------
Total Non-Current Assets                             1,450.0        1,439.7 
----------------------------------------------------------------------------
                                                                            
Total Assets                                         2,025.7        2,114.9 
----------------------------------------------------------------------------
                                                                            
Liabilities and Equity                                                      
Current Liabilities                                                         
Trade and other payables                        9      300.0          379.0 
Deferred revenue                               10        8.8            9.1 
Borrowing                                      12       69.8           66.7 
Dividends and interest payable                           8.5            8.5 
Unrealized losses on derivative financial                                   
 instruments                                   14       53.7           62.4 
----------------------------------------------------------------------------
Total Current Liabilities                              440.8          525.7 
----------------------------------------------------------------------------
                                                                            
Non-Current Liabilities                                                     
Borrowing                                      12      579.7          459.5 
Convertible unsecured subordinated                                          
 debentures                                    13      300.9          473.8 
Other liabilities                              11        2.7            1.9 
Provisions                                      8       21.7           22.7 
Employee future benefits                                26.0           26.2 
Deferred tax                                   15       15.2            8.3 
Unrealized losses on derivative financial                                   
 instruments                                   14       66.4           46.4 
----------------------------------------------------------------------------
Total Non-Current Liabilities                        1,012.6        1,038.8 
----------------------------------------------------------------------------
                                                                            
Total Liabilities                                    1,453.4        1,564.5 
----------------------------------------------------------------------------
                                                                            
Equity                                                                      
Capital                                              1,793.2        1,788.2 
Deficit                                             (1,275.5)      (1,261.1)
Accumulated other comprehensive loss                    54.6           23.3 
----------------------------------------------------------------------------
Total Equity                                   16      572.3          550.4 
----------------------------------------------------------------------------
                                                                            
Total Liabilities and Equity                         2,025.7        2,114.9 
----------------------------------------------------------------------------
See accompanying Notes to the Condensed Consolidated Financial Statements.  
                                                                            
SUPERIOR PLUS CORP.                                                         
Condensed Consolidated Statement of Changes in Equity                       
                                                                            
                                                                            
                                                                            
                                                                            
(unaudited, millions of                  Share   Contributed          Total 
 Canadian dollars)                     Capital    Surplus(2)     Capital(2) 
----------------------------------------------------------------------------
January 1, 2014(1)                     1,786.5           1.4        1,787.9 
Net earnings                                 -             -              - 
Conversion of 7.5% convertible                                              
 unsecured subordinated                                                     
 debentures                                0.3             -            0.3 
Dividends declared to                                                       
 shareholders                                -             -              - 
Unrealized foreign currency                                                 
 loss on translation of foreign                                             
 operations                                  -             -              - 
Actuarial defined benefit loss               -             -              - 
Income tax recovery on other                                                
 comprehensive income                        -             -              - 
----------------------------------------------------------------------------
June 30, 2014(1)                       1,786.8           1.4        1,788.2 
----------------------------------------------------------------------------
Net earnings                                 -             -              - 
Dividends declared to                                                       
 shareholders                                -             -              - 
Unrealized foreign currency                                                 
 gains on translation of                                                    
 foreign operations                          -             -              - 
Actuarial defined benefit loss               -             -              - 
Reclassification of derivatives                                             
 losses previously deferred                  -             -              - 
Income tax recovery on other                                                
 comprehensive income                        -             -              - 
----------------------------------------------------------------------------
December 31, 2014                      1,786.8           1.4        1,788.2 
----------------------------------------------------------------------------
Net earnings                                 -             -              - 
Conversion of 7.5% convertible                                              
 unsecured subordinated                                                     
 debentures                                5.2             -            5.2 
Option value associated with                                                
 redemption of convertible                                                  
 debentures                                  -          (0.2)          (0.2)
Dividends declared to                                                       
 shareholders                                -             -              - 
Unrealized foreign currency                                                 
 gain on translation of foreign                                             
 operations                                  -             -              - 
Actuarial defined benefit loss               -             -              - 
Income tax recovery on other                                                
 comprehensive income                        -             -              - 
----------------------------------------------------------------------------
June 30, 2015                          1,792.0           1.2        1,793.2 
----------------------------------------------------------------------------

                                                                            
SUPERIOR PLUS CORP.                                                         
Condensed Consolidated Statement of Changes in Equity                       
                                                                            
                                                                            
                                                 Accumulated                
                                                       other                
(unaudited, millions of                        comprehensive                
 Canadian dollars)                    Deficit           loss          Total 
----------------------------------------------------------------------------
January 1, 2014(1)                   (1,239.8)          (7.9)         540.2 
Net earnings                             56.0              -           56.0 
Conversion of 7.5% convertible                                              
 unsecured subordinated                                                     
 debentures                                 -              -            0.3 
Dividends declared to                                                       
 shareholders                           (37.8)             -          (37.8)
Unrealized foreign currency                                                 
 loss on translation of foreign                                             
 operations                                 -           (1.1)          (1.1)
Actuarial defined benefit loss              -           (2.0)          (2.0)
Income tax recovery on other                                                
 comprehensive income                       -            0.5            0.5 
----------------------------------------------------------------------------
June 30, 2014(1)                     (1,221.6)         (10.5)         556.1 
----------------------------------------------------------------------------
Net earnings                              0.9              -            0.9 
Dividends declared to                                                       
 shareholders                           (40.4)             -          (40.4)
Unrealized foreign currency                                                 
 gains on translation of                                                    
 foreign operations                         -           37.1           37.1 
Actuarial defined benefit loss              -           (3.6)          (3.6)
Reclassification of derivatives                                             
 losses previously deferred                 -           (0.5)          (0.5)
Income tax recovery on other                                                
 comprehensive income                       -            0.8            0.8 
----------------------------------------------------------------------------
December 31, 2014                    (1,261.1)          23.3          550.4 
----------------------------------------------------------------------------
Net earnings                             31.1              -           31.1 
Conversion of 7.5% convertible                                              
 unsecured subordinated                                                     
 debentures                                 -              -            5.2 
Option value associated with                                                
 redemption of convertible                                                  
 debentures                                 -              -           (0.2)
Dividends declared to                                                       
 shareholders                           (45.5)             -          (45.5)
Unrealized foreign currency                                                 
 gain on translation of foreign                                             
 operations                                 -           32.8           32.8 
Actuarial defined benefit loss              -           (2.1)          (2.1)
Income tax recovery on other                                                
 comprehensive income                       -            0.6            0.6 
----------------------------------------------------------------------------
June 30, 2015                        (1,275.5)          54.6          572.3 
----------------------------------------------------------------------------
(1) The three and six months ended June 30, 2014 have been revised to       
    include the impact of first and second quarter adjustments (refer to    
    Note 23 for details).                                                   
(2) Contributed surplus represents Superior's equity reserve for the option 
    value associated with the issuance of convertible unsecured subordinated
    debentures and warrants.                                                
                                                                            
See accompanying Notes to the Condensed Consolidated Financial Statements.  
                                                                            
SUPERIOR PLUS CORP.                                                         
Condensed Consolidated Statement of Net Earnings and Total Comprehensive    
Income (Loss)                                                               
                                                                            
                                             Three months  Six months ended 
                                            ended June 30           June 30 
(unaudited, millions of Canadian                                            
 dollars except per share amounts)  Note    2015  2014(1)     2015  2014(1) 
----------------------------------------------------------------------------
                                                                            
Revenues                              19   743.9    895.4  1,750.5  2,177.7 
Cost of sales (includes products &                                          
 services)                            19  (551.1)  (699.4)(1,268.0)(1,691.5)
----------------------------------------------------------------------------
Gross profit                               192.8    196.0    482.5    486.2 
----------------------------------------------------------------------------
                                                                            
Expenses                                                                    
Selling, distribution and                                                   
 administrative costs                 19  (187.4)  (179.3)  (395.3)  (384.1)
Finance expense                       19   (14.9)   (13.3)   (30.9)   (27.7)
Unrealized gains (losses) on                                                
 derivative financial instruments     14    47.2      5.5     (4.7)     1.4 
----------------------------------------------------------------------------
                                          (155.1)  (187.1)  (430.9)  (410.4)
----------------------------------------------------------------------------
                                                                            
Net earnings before income taxes            37.7      8.9     51.6     75.8 
Income tax recovery (expense)         15     3.2     (3.0)   (20.5)   (19.8)
----------------------------------------------------------------------------
Net earnings                                40.9      5.9     31.1     56.0 
----------------------------------------------------------------------------
                                                                            
Net earnings                                40.9      5.9     31.1     56.0 
Other comprehensive income:                                                 
  Unrealized foreign currency                                               
   (loss) gains on translation of                                           
   foreign operations                       (9.2)   (15.8)    32.8     (1.1)
  Actuarial defined benefit gains                                           
   (loss)                                    1.2     (1.9)    (2.1)    (2.0)
  Income tax (expense) recovery on                                          
   other comprehensive income               (0.3)     0.4      0.6      0.5 
----------------------------------------------------------------------------
Other comprehensive (loss) income                                           
 for the period                             (8.3)   (17.3)    31.3     (2.6)
----------------------------------------------------------------------------
Total comprehensive income (loss)                                           
 for the period                             32.6    (11.4)    62.4     53.4 
----------------------------------------------------------------------------
                                                                            
Net earnings (loss) per share                                               
  Basic                               17   $0.32    $0.05    $0.25    $0.44 
  Diluted                             17   $0.25   $(0.02)   $0.24    $0.44 
----------------------------------------------------------------------------
(1) The three and six months ended June 30, 2014 have been revised to       
    include the impact of first and second quarter adjustments (refer to    
    Note 23 for details), as well as to include the reclassification of     
    previously disclosed discontinued operations into continuing operations.
                                                                            
See accompanying Notes to the Condensed Consolidated Financial Statements.  
                                                                            
SUPERIOR PLUS CORP.                                                         
Condensed Consolidated Statement of Cash Flows                              
                                                                            
                                                Three months     Six months 
                                               ended June 30  ended June 30 
(unaudited, millions of Canadian                                            
 dollars)                               Notes   2015 2014(1)   2015 2014(1) 
----------------------------------------------------------------------------
OPERATING ACTIVITIES                                                        
Net earnings for the period                     40.9     5.9   31.1    56.0 
Adjustments for:                                                            
  Depreciation included in selling,                                         
   distribution and administrative                                          
   costs                                    7   13.2    10.0   26.3    21.4 
  Amortization of intangible assets              1.7     0.6    3.4     1.5 
  Depreciation included in cost of                                          
   sales                                    7   15.3    12.1   28.8    24.0 
  Gain on sale of customer list                 (0.3)   (3.7)  (0.3)   (3.7)
  (Gain) Loss on disposal of assets                -    (0.1)   0.5    (0.1)
  Unrealized (gains) losses on                                              
   derivative financial instruments        14  (47.2)   (5.5)   4.7    (1.4)
  Customer contract-related costs               (0.3)   (0.3)  (0.7)   (0.7)
  Finance expense recognized in net                                         
   earnings                                     14.9    13.3   30.9    27.7 
  Income tax (recovery) expense                                             
   recognized in net earnings                   (3.2)    3.0   20.5    19.8 
  Decrease in non-cash operating                                            
   working capital                         18   33.1    86.2   54.8    28.1 
----------------------------------------------------------------------------
Net cash flows from operating                                               
 activities                                     68.1   121.5  200.0   172.6 
Income taxes paid                               (0.1)   (1.7) (17.0)   (1.8)
Interest paid                                  (25.8)  (21.7) (28.6)  (26.5)
----------------------------------------------------------------------------
Cash flows from operating activities            42.2    98.1  154.4   144.3 
----------------------------------------------------------------------------
                                                                            
INVESTING ACTIVITIES                                                        
Purchase of property, plant and                                             
 equipment                                  7  (17.5)  (25.3) (31.3)  (42.1)
Proceeds from finance lease arrangement                                     
 termination                                       -     8.2      -     8.2 
Proceeds from disposal of property,                                         
 plant and equipment and intangible                                         
 assets                                     7    0.6     4.2    1.1     4.6 
Acquisitions                                4   (1.6)      -   (1.6)      - 
----------------------------------------------------------------------------
Cash flows used in investing activities        (18.5)  (12.9) (31.8)  (29.3)
----------------------------------------------------------------------------
                                                                            
FINANCING ACTIVITIES                                                        
Net repayment of revolving term bank                                        
 credits and other debt                        161.7   (65.0) 106.6   (65.0)
Redemption of 5.75% convertible                                             
 debentures                                13 (172.5)      - (172.5)      - 
Repayment of finance lease obligations          (5.3)   (5.0) (10.3)   (9.7)
Dividends paid to shareholders                 (22.8)  (19.0) (45.5)  (37.9)
----------------------------------------------------------------------------
Cash flows used in financing activities        (38.9)  (89.0)(121.7) (112.6)
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
Net (decrease) increase in cash and                                         
 cash equivalents                              (15.2)   (3.8)   0.9     2.4 
Cash and cash equivalents, beginning of                                     
 period                                         20.0    14.6    3.1     8.3 
Effect of translation of foreign                                            
 currency-denominated cash and cash                                         
 equivalents                                    (0.2)   (0.3)   0.6    (0.2)
----------------------------------------------------------------------------
Cash and cash equivalents, end of                                           
 period                                          4.6    10.5    4.6    10.5 
----------------------------------------------------------------------------
(1) The three and six months ended June 30, 2014 have been revised to       
    include the impact of first and second quarter adjustments (refer to    
    Note 23 for details).                                                   
                                                                            
See accompanying Notes to the Condensed Consolidated Financial Statements.  
                                                                            
Notes to the Unaudited Condensed Consolidated Financial Statements          
(unaudited, tabular amounts in millions of Canadian dollars, except per     
share amounts)                                                              

1. Organization

Superior Plus Corp. (Superior) is a diversified business corporation, incorporated under the Canada Business Corporations Act. The registered office is at suite 1400, 840 - 7th Avenue S.W., Calgary, Alberta. Superior holds 100% of Superior Plus LP (Superior LP), a limited partnership formed between Superior General Partner Inc. as general partner and Superior as limited partner. Superior holds 100% of the interest of Superior General Partner Inc. Superior does not conduct active business operations but rather distributes to shareholders a portion of the income it receives from Superior Plus LP in the form of partnership allocations, net of expenses and interest payable on the convertible unsecured subordinated debentures (the debentures). Superior's investments in Superior Plus LP are financed by share capital and debentures. Superior is a publicly traded company with its common shares trading on the Toronto Stock Exchange (TSX) under the exchange symbol SPB.

The accompanying unaudited condensed consolidated financial statements (consolidated financial statements) of Superior as at June 30, 2015 and the three and six months ended June 30, 2015 and 2014 were authorized for issuance by the Board of Directors on July 30, 2015.

Reportable Operating Segments

Superior operates three distinct reportable operating segments: Energy Services, Specialty Chemicals and Construction Products Distribution. Superior's Energy Services' operating segment provides distribution, wholesale procurement and related services in relation to propane, heating oil and other refined fuels under the following: Canadian propane division and U.S. refined fuels division. Energy Services also provides fixed-price natural gas and electricity supply services under Superior Energy Management. Specialty Chemicals is a leading supplier of sodium chlorate and technology to the pulp and paper industries and a regional supplier of potassium and chloralkali products in the U.S. Midwest. Construction Products Distribution is one of the largest distributors of commercial and industrial insulation in North America and the largest distributor of specialty construction products to the walls and ceilings industry in Canada (See Note 21).

2. Basis of Presentation

The accompanying consolidated financial statements were prepared in accordance with International Accounting Standard 34 Interim Financial Reporting (IAS 34) as issued by the International Accounting Standards Board (IASB) using the accounting policies Superior adopted in its annual consolidated financial statements as at and for the year ended December 31, 2014 other than the standards adopted as at January 1, 2015. The accounting policies are based on the International Financial Reporting Standards (IFRS) and International Financial Reporting Interpretations Committee (IFRIC) interpretations that were applicable at that time. These accounting policies have been applied consistently to all periods presented in these consolidated financial statements, and have been applied consistently throughout the consolidated entities.

The consolidated financial statements are presented in Canadian dollars, Superior's functional currency. All financial information presented in Canadian dollars has been rounded to the nearest hundred-thousand. These consolidated financial statements should be read in conjunction with Superior's 2014 annual consolidated financial statements.

The consolidated financial statements were prepared on the historical cost basis except for certain financial instruments that are measured at fair value as explained in Superior's 2014 annual consolidated financial statements and incorporate the accounts of Superior and its wholly-owned subsidiaries. Subsidiaries are all entities over which Superior has the power to govern the financial and operating policies generally accompanying a shareholding of more than one-half of the voting rights. The results of subsidiaries are included in Superior's statement of net earnings from date of acquisition or, in the case of disposals, up to the effective date of disposal. All transactions and balances between Superior and Superior's subsidiaries are eliminated upon consolidation. Superior's subsidiaries are all wholly owned directly or indirectly by Superior Plus Corp.

Significant Accounting Policies

(a) Significant Accounting Judgments, Estimates and Assumptions

The preparation of Superior's consolidated financial statements in accordance with IFRS requires management to make judgments, estimates and assumptions that affect the reported amounts of assets, liabilities, net earnings and related disclosure. The estimates and associated assumptions are based on historical experience and various other factors deemed reasonable under the circumstances, the results of which form the basis of making the judgments about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. The areas involving a higher degree of judgment or complexity, or where assumptions and estimates are significant to the financial statements are consistent with those disclosed in Superior's 2014 annual consolidated financial statements.

(b) Recent Accounting Pronouncements

Certain new standards, interpretations, amendments and improvements to existing standards were issued by the IASB or IFRIC that are mandatory for accounting periods beginning January 1, 2015 or later periods. The affected standards are consistent with those disclosed in Superior's 2014 annual consolidated financial statements.

New and revised IFRS standards issued but not yet effective

IFRS 9 - Financial Instruments: Classification and Measurement

IFRS 9 was issued in November 2009 and is intended to replace IAS 39 - Financial Instruments: Recognition and Measurement. IFRS 9 uses a single approach to determine whether a financial asset is measured at amortized cost or fair value, replacing the multiple rules in IAS 39. The approach in IFRS 9 is based on how an entity manages its financial instruments in the context of its business model and the contractual cash flow characteristics of the financial assets. The new standard also requires a single impairment method to be used, replacing the multiple impairment methods in IAS 39. Requirements for financial liabilities were added in October 2010 and they largely carried forward existing requirements in IAS 39 except that fair value changes due to credit risk for liabilities designated at fair value through profit and loss would generally be recorded in other comprehensive income. Another revised version of IFRS 9 was issued in July 2014 to include impairment requirements for financial assets and limited amendments to the classification and measurement requirements by introducing the fair value through other comprehensive income measurement category for certain simple debt instruments. This standard must be applied for accounting periods beginning on or after January 1, 2018, with earlier adoption permitted. Superior is assessing the effect of IFRS 9 on its financial results and financial position; changes, if any, are not expected to be material.

IFRS 15 - Revenue from Contracts with Customers

In May 2014, IFRS 15 was issued, establishing a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. IFRS 15 supersedes the current revenue recognition guidance including IAS 18 - Revenue, IAS 11 - Construction Contracts and the related interpretation when it becomes effective. Under IFRS 15, an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. An entity is required to recognize revenue when the performance obligation is satisfied. Either a full or modified retrospective application is required for annual periods beginning on or after January 1, 2018 with early adoption permitted. Superior is currently assessing the impact of IFRS 15 and plans to adopt the new standard on the required effective date.

IAS 16 and IAS 38 - Property, Plant and Equipment and Intangible Assets

The amendments to IAS 16 prohibit entities from using a revenue-based depreciation method for items of property, plant, and equipment. The amendments to IAS 38 introduce a rebuttable presumption that revenue is not an appropriate basis for amortization of an intangible asset. This presumption can only be rebutted in the event when the intangible asset is expressed as a measure of revenue or, when it can be demonstrated that revenue and consumption of the economic benefits of the intangible assets are highly correlated. This standard must be applied for accounting periods beginning on or after January 1, 2016, with earlier adoption permitted. Superior currently amortizes property, plant and equipment and intangible assets using the straight-line method and therefore, does not anticipate the application of these amendments to IAS 16 and IAS 18 having a material impact on Superior's consolidated financial statements.

3. Seasonality of Operations

Energy Services

Sales typically peak in the first quarter when approximately one-third of annual propane and other refined fuels sales volumes and gross profits are generated due to the demand from heating end-use customers. They then decline through the second and third quarters, rising seasonally again in the fourth quarter with heating demand. Similarly, net working capital is typically at seasonal highs during the first and fourth quarters, and normally declines to seasonal low in the second and third quarters. Net working capital is also significantly influenced by wholesale propane prices and other refined fuels.

Construction Products Distribution

Sales typically peak during the second and third quarters with the seasonal increase in building and renovation activities. They then decline through the fourth quarter and into the subsequent first quarter. Similarly, net working capital is typically at seasonally high levels during the second and third quarters, and normally decline to seasonal lows in the fourth and first quarters.

4. Acquisitions

On April 1, 2015, Superior acquired the assets of Warner's Gas Service Inc. (Warner's) which is a small private propane and fuel distribution business in Vestal, New York for an aggregate purchase price of $5.5 million including adjustments to net working capital and deferred consideration. The operations will provide U.S. refined fuels with access to additional propane customers.


Warner's Acquisition                   Fair Value Recognized on Acquisition 
----------------------------------------------------------------------------
                                                                            
Property, plant and equipment                                           1.9 
Intangible assets                                                       3.5 
Trade and other payables                                               (0.7)
----------------------------------------------------------------------------
                                                                        4.7 
                                                                            
Net identifiable assets and                                                 
 liabilities                                                            4.7 
Goodwill arising on acquisition                                         0.8 
----------------------------------------------------------------------------
Total consideration                                                     5.5 
----------------------------------------------------------------------------
                                                                            
Purchase consideration components:                                          
Cash (paid on April 1, 2015)                                            1.6 
Deferred consideration                                                  3.9 
----------------------------------------------------------------------------
Total purchase consideration                                            5.5 
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Revenue and net earnings for the three months ended June 30, 2015 would have been $1.4 million and $(0.2) million, respectively, if the acquisition had occurred on January 1, 2015. Revenue and net earnings for the six months ended June 30, 2015 would have been $6.0 million and $0.5 million, respectively, if the acquisition had occurred on January 1, 2015. Subsequent to the acquisition date of April 1, 2015, the acquisition contributed revenue and net earnings, respectively, of $1.4 million and $(0.2) million to Energy Services for the period ended June 30, 2015.

5. Trade and Other Receivables

A summary of trade and other receivables is as follows:


                                                      June 30    December 31
                                          Note           2015           2014
----------------------------------------------------------------------------
Trade receivables, net of allowances       14           321.1          392.5
Accounts receivable - other                              26.5           36.2
----------------------------------------------------------------------------
Trade and other receivables                             347.6          428.7
----------------------------------------------------------------------------

6. Inventories

The cost of inventories recognized as an expense during the three and six months ended June 30, 2015 was $481.2 million (June 30, 2014 - $624.0 million) and $1,095.2 million (June 30, 2014 - $1,533.2 million); respectively. Superior recorded an inventory write-down during the three and six months ended June 30, 2015 of $0.5 million (June 30, 2014 - $nil) and $1.5 million (June 30, 2014 - $nil); respectively. Superior recorded a write-down reversal during the three and six months months ended June 30, 2015 of $1.1 million (June 30, 2014 - $nil) and $5.8 million (June 30, 2014 - $nil); respectively.

7. Property, Plant and Equipment


                                                    Specialty         Energy
                                                    Chemicals       Services
                                                      Plant &      Retailing
Cost                       Land      Buildings      Equipment      Equipment
----------------------------------------------------------------------------
Balance at December                                                         
 31, 2014                  30.6          171.3          891.3          684.2
----------------------------------------------------------------------------
Balance at June 30,                                                         
 2015                      31.8          177.7          932.3          713.5
----------------------------------------------------------------------------
                                                                            
Accumulated                                                                 
 Depreciation                                                               
----------------------------------------------------------------------------
Balance at December                                                         
 31, 2014                     -           58.2          443.5          369.9
----------------------------------------------------------------------------
Balance at June 30,                                                         
 2015                         -           63.1          480.0          392.7
----------------------------------------------------------------------------
                                                                            
Carrying Amount                                                             
----------------------------------------------------------------------------
Balance at December                                                         
 31, 2014                  30.6          113.1          447.8          314.3
----------------------------------------------------------------------------
Balance at June 30,                                                         
 2015                      31.8          114.6          452.3          320.8
----------------------------------------------------------------------------

                            Construction                                    
                                Products                                    
                            Distribution         Leasehold                  
Cost                           Equipment      Improvements             Total
----------------------------------------------------------------------------
Balance at December                                                         
 31, 2014                           54.2              11.9           1,843.5
----------------------------------------------------------------------------
Balance at June 30,                                                         
 2015                               62.9              12.3           1,930.5
----------------------------------------------------------------------------
                                                                            
Accumulated                                                                 
 Depreciation                                                               
----------------------------------------------------------------------------
Balance at December                                                         
 31, 2014                           30.9               8.8             911.3
----------------------------------------------------------------------------
Balance at June 30,                                                         
 2015                               32.7               9.2             977.7
----------------------------------------------------------------------------
                                                                            
Carrying Amount                                                             
----------------------------------------------------------------------------
Balance at December                                                         
 31, 2014                           23.3               3.1             932.2
----------------------------------------------------------------------------
Balance at June 30,                                                         
 2015                               30.2               3.1             952.8
----------------------------------------------------------------------------

Depreciation per cost category:


                                  Three months ended        Six months ended
                                             June 30                 June 30
                                    2015        2014        2015        2014
----------------------------------------------------------------------------
Cost of sales                       15.3        12.1        28.8        24.0
Selling, distribution and                                                   
 administrative costs               13.2        10.0        26.3        21.4
----------------------------------------------------------------------------
Total                               28.5        22.1        55.1        45.4
----------------------------------------------------------------------------

The carrying amount of Superior's property, plant, and equipment includes $84.4 million of leased assets as at June 30, 2015 (December 31, 2014 - $86.6 million).

8. Provisions


                       Restructuring Decommissioning  Environmental   Total 
----------------------------------------------------------------------------
Balance at December                                                         
 31, 2014                        7.4            18.7            1.2    27.3 
  Additions                        -             0.1              -     0.1 
  Utilization                   (4.8)           (0.1)          (0.1)   (5.0)
  Amounts reversed                                                          
   during the year              (0.8)              -              -    (0.8)
  Unwinding of                                                              
   discount                        -             0.8              -     0.8 
  Impact of change in                                                       
   discount rate                   -             0.1              -     0.1 
  Net foreign currency                                                      
   exchange difference             -             0.9            0.1     1.0 
----------------------------------------------------------------------------
Balance at June 30,                                                         
 2015                            1.8            20.5            1.2    23.5 
----------------------------------------------------------------------------
                                                                            
                                                                            
                                                        June 30  December 31
                                             Note          2015         2014
----------------------------------------------------------------------------
Current                                        9            1.8          4.6
Non-current                                                21.7         22.7
----------------------------------------------------------------------------
                                                           23.5         27.3
----------------------------------------------------------------------------

Restructuring

Restructuring costs under the provision are recorded in selling, distribution, and administrative costs. For the three and six months ended June 30, 2015 restructuring costs was $nil (June 30, 2014 - $9.3 million) and $nil (June 30, 2014 - $11.1 million), respectively. Provisions for restructuring are recorded in provisions, except for the current portion, which is recorded in trade and other payables. As at June 30, 2015, the current portion of restructuring costs was $1.8 million (December 31, 2014 - $4.6 million). As at June 30, 2015, the long term portion of restructuring costs was $nil (December 31, 2014 - $2.9 million). The provision is primarily for severance, lease costs and consulting fees.

Decommissioning

The provisions are on a discounted basis and are based on existing technologies at current prices or long-term price assumptions, depending on the activity's expected timing.

Specialty Chemicals

Superior makes full provision for the future cost of decommissioning Specialty Chemicals' chemical facilities. As at June 30, 2015, the discount rate used in Superior's calculation was 2.31% (December 31, 2014 - 2.33%). Superior estimates the total undiscounted expenditures required to settle its decommissioning liabilities to be approximately $22.0 million (December 31, 2014 - $21.4 million) which will be paid over the next 17 to 25 years. While Superior's provision for decommissioning costs is based on the best estimate of future costs and the economic lives of the chemical facilities, the amount and timing of these costs is uncertain.

Energy Services

Superior makes full provision for the future costs of decommissioning certain assets associated with the Energy Services segment. Superior estimates the total undiscounted expenditures required to settle its decommissioning liabilities to be approximately $11.1 million at June 30, 2015 (December 31, 2014 - $9.6 million) which will be paid over the next 17 years. The discount rate of 2.31% at June 30, 2015 (December 31, 2014 - 2.33%) was used to calculate the present value of the estimated cash flows.

Environmental

Provisions for environmental remediation are made when a clean-up is probable and the amount of the obligation can be reliably estimated. Generally, this coincides with commitment to a formal plan or, if earlier, on divestment or closure of inactive sites. Superior estimates the total undiscounted expenditures required to settle its environmental expenditures to be approximately $1.2 million at June 30, 2015 (December 31, 2014 - $1.2 million) which will be paid over the next two years. The provision for environmental expenditures has been estimated using existing technology, at current prices and discounted using a discount rate of 2.31% at June 30, 2015 (December 31, 2014 - 2.33%). The extent and cost of future remediation programs are inherently difficult to estimate. They depend on the scale of any possible contamination, the timing and extent of corrective actions, and Superior's share of the liability.

9. Trade and Other Payables

A summary of trade and other payables is as follows:


                                                      June 30    December 31
                                         Notes           2015           2014
----------------------------------------------------------------------------
Trade payables                                          201.6          279.5
Other payables                                           80.4           76.7
Net benefit obligation                                    4.6            4.6
Restructuring provision                    8              1.8            4.6
Amounts due to customers under                                              
 construction contracts                                     -            1.6
Share-based payments                                     11.6           12.0
----------------------------------------------------------------------------
Trade and other payables                                300.0          379.0
----------------------------------------------------------------------------
----------------------------------------------------------------------------

10. Deferred Revenue


                                                     June 30    December 31 
                                                        2015           2014 
----------------------------------------------------------------------------
Balance at the beginning of the period                   9.1           24.8 
  Deferred during the period                            11.0           17.9 
  Released to net earnings (loss)                      (11.8)         (34.3)
  Foreign exchange impact                                0.5            0.7 
----------------------------------------------------------------------------
Balance at the end of the period                         8.8            9.1 
----------------------------------------------------------------------------

The deferred revenue relates to Energy Services' unearned service and product revenue and Specialty Chemicals' unearned product-related revenues.

11. Other Liabilities


                                                      June 30    December 31
                                                         2015           2014
----------------------------------------------------------------------------
Supply agreement                                          2.7            1.9
----------------------------------------------------------------------------
                                                          2.7            1.9
----------------------------------------------------------------------------

The supply agreement above relates to Specialty Chemicals' supply agreement with Tronox LLC (Tronox) to purchase 130,000 metric tones (MT) of sodium chlorate per year from Tronox's Hamilton, Mississippi facility as nominated annually by Specialty Chemicals. Specialty Chemicals has provided notification that it will not be nominating any volume for fiscal 2016 related to this agreement.

12. Borrowing


                        Year of   Effective Interest   June 30  December 31 
                        Maturity         Rate             2015         2014 
----------------------------------------------------------------------------
Revolving Term Bank                                                         
 Credit Facilities(1)                                                       
                                   Floating BA rate                         
 Bankers' Acceptances               plus applicable                         
  (BA)                    2019       credit spread       255.4         71.8 
                                    Prime rate plus                         
 Canadian Prime Rate               applicable credit                        
  Loan                    2019          spread             7.3         16.4 
                                  Floating LIBOR rate                       
                                    plus applicable                         
 LIBOR Loans              2019       credit spread        51.1        106.7 
 (U.S. $41.0 million;                                                       
  2014 - U.S. $92.0                                                         
  million)                                                                  
                                  US Prime rate plus                        
 US Base Rate Loan        2019       credit spread        20.0         23.0 
 (U.S. $16.0 million;                                                       
  2014 - U.S. $19.8                                                         
  million)                                                                  
----------------------------------------------------------------------------
                                                         333.8        217.9 
----------------------------------------------------------------------------
Other Debt                                                                  
 Accounts receivable                                                        
  factoring program(2)     -       Floating BA Plus        2.4          5.6 
 Deferred                                                                   
  consideration        2015-2018 Non-interest-bearing      6.5          2.8 
----------------------------------------------------------------------------
                                                           8.9          8.4 
----------------------------------------------------------------------------
Senior Secured                                                              
 Notes(3)                                                                   
 Senior secured notes                                                       
  subject to fixed                                                          
  interest rates (U.S.                                                      
  $30.0 million; 2014                                                       
  - U.S. $30.0                                                              
  million)                2015           7.62%            37.4         34.8 
----------------------------------------------------------------------------
Senior Unsecured Notes                                                      
 Senior unsecured                                                           
  notes(4)                2021           6.50%           200.0        200.0 
----------------------------------------------------------------------------
Finance Lease                                                               
 Obligations                                                                
 Finance lease                                                              
  obligation                                              76.0         72.1 
----------------------------------------------------------------------------
Total borrowing before                                                      
 deferred financing                                                         
 fees                                                    656.1        533.2 
Deferred financing                                                          
 fees                                                     (6.6)        (7.0)
----------------------------------------------------------------------------
Borrowing                                                649.5        526.2 
Current maturities                                       (69.8)       (66.7)
----------------------------------------------------------------------------
Borrowing                                                579.7        459.5 
----------------------------------------------------------------------------
(1) On May 27, 2015, Superior and its wholly-owned subsidiaries, Superior   
    Plus US Financing Inc. and Commercial E Industrial (Chile) Limitada,    
    extended the maturity date of its credit facility, which totals $570.0  
    million, to June 27, 2019. The credit facility, which includes eight    
    lenders, can be expanded up to $750.0 million. Superior maintains the   
    flexibility to expand the facility up to $750.0 million. As at June 30, 
    2015, Superior had $29.2 million of outstanding letters of credit       
    (December 31, 2014 - $30.6 million) and approximately $133.1 million of 
    outstanding financial guarantees (December 31, 2014 - $128.6 million).  
    The fair value of Superior's revolving term bank credit facilities,     
    other debt, letters of credit, and financial guarantees approximates    
    their carrying value as a result of the market-based interest rates, the
    short-term nature of the underlying debt instruments and other related  
    factors.                                                                
(2) Superior has entered into a Master Receivables Purchase Agreement with a
    financial institution by which it may purchase from time to time, on an 
    uncommitted revolving basis, a 100% interest in receivables from        
    Superior. The maximum aggregate amount of purchased receivables         
    purchased by the financial institution under this agreement and         
    outstanding at any time is limited to $15.0 million. As at June 30,     
    2015, the accounts receivable factoring program totalled CDN $2.4       
    million (December 31, 2014 - CDN $5.6 million).                         
(3) Senior secured notes (the notes) totalling U.S. $30.0 million at June   
    30, 2015 and December 31, 2014 (CDN $37.4 million CDN $34.8 million,    
    respectively) are secured by a general charge over the assets of        
    Superior and certain of its subsidiaries. Principal repayments began in 
    the fourth quarter of 2009. Management has estimated the fair value of  
    the notes based on comparisons to U.S. Treasury instruments with similar
    maturities, interest rates and credit risk profiles. The estimated fair 
    value of the notes as at June 30, 2015 was CDN $38.5 million (December  
    31, 2014 - CDN $36.6 million).                                          
(4) On December 9, 2014, Superior completed an offering of $200.0 million   
    6.50% senior unsecured notes (the senior notes). The senior notes were  
    issued at par value and mature on December 9, 2021. The senior notes    
    contain certain early redemption options under which Superior has the   
    option to redeem all or a portion of the senior notes at various        
    redemption prices, which include the principal amount plus accrued and  
    unpaid interest, if any, to the application redemption date. Interest is
    payable semi-annually on June 9 and December 9, commencing June 9, 2015.

Repayment requirements of borrowing before deferred financing fees are as follows:


Current maturities                                                      69.8
Due in 2016                                                             22.8
Due in 2017                                                              8.7
Due in 2018                                                              8.1
Due in 2019                                                            339.2
Due in 2020                                                              7.5
Subsequent to 2020                                                     200.0
----------------------------------------------------------------------------
Total                                                                  656.1
----------------------------------------------------------------------------

13. Convertible Unsecured Subordinated Debentures

Superior's debentures are as follows:


                                    June    June   October    June          
Maturity                         2017(1)    2018      2016    2019     Total
Interest rate                      5.75%   6.00%     7.50%   6.00%  Carrying
Conversion price per share        $19.00  $15.10    $11.35  $16.75     Value
----------------------------------------------------------------------------
Debentures outstanding as at                                                
 June 30, 2015                         -   146.4      68.2    86.3     300.9
Debentures outstanding as at                                                
 December 31, 2014                 169.6   145.9      73.1    85.2     473.8
----------------------------------------------------------------------------
Quoted market value as at June                                              
 30, 2015                              -   154.1      81.8   101.9     337.8
Quoted market value as at                                                   
 December 31, 2014                 176.0   155.3      80.9   100.4     512.6
----------------------------------------------------------------------------
(1) Superior redeemed $172.5 million being the total outstanding amount of  
    the 5.75% June 2017 convertible unsecured subordinated debentures on    
    June 30, 2015.                                                          

Superior's convertible debentures due in October 2016, June 2018, and June 2019 carry multiple settlement options at conversion. The debentures may be converted into shares at the option of the holder, at the conversion price, at any time prior to the earlier of redemption by Superior or maturity. Superior may elect to pay interest and principal upon maturity or redemption by issuing shares to a trustee in the case of interest payments, and to the debenture holders in the case of payment of principal. The number of any shares issued to the debenture holders will be determined based on the market price per share at the time of issuance. Superior may elect to pay the debenture holders cash in lieu of delivering common shares upon conversion.

The principal amount of all convertible debentures as at June 30, 2015 was $316.3 million (December 31, 2014 - $494.2 million).

14. Financial Instruments

IFRS requires disclosure around fair value and specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect Superior's market assumptions. These two types of input create the following fair-value hierarchy:


--  Level 1 - Quoted prices in active markets for identical instruments. 
--  Level 2 - Quoted prices for similar instruments in active markets;
    quoted prices for identical or similar instruments in markets that are
    not active; and model-derived valuations in which all significant inputs
    and significant value drivers are observable in active markets. 
--  Level 3 - Valuations derived from valuation techniques in which one or
    more significant inputs or significant value drivers are unobservable. 

The fair value of a financial instrument is the consideration estimated to be agreed upon in an arm's-length transaction between knowledgeable, willing parties who are under no compulsion to act. Fair values are determined by reference to quoted bid or asking prices, as appropriate, in the most advantageous active market for that instrument to which Superior has immediate access (Level 1). Where bid and ask prices are unavailable, Superior uses the closing price of the instrument's most recent transaction. In the absence of an active market, Superior estimates fair values based on prevailing market rates (bid and ask prices, as appropriate) for instruments with similar characteristics and risk profiles or internal or external valuation models, such as discounted cash flow analysis using, to the extent possible, observable market-based inputs (Level 2). Superior uses internally developed methodologies and unobservable inputs to determine the fair value of some financial instruments when required (Level 3).

Fair values determined using valuation models require assumptions concerning the amount and timing of estimated future cash flows and discount rates. In determining those assumptions, Superior looks primarily to available readily observable external market inputs including forecast commodity price curves, interest rate yield curves, currency rates, and price and rate volatilities as applicable.

With respect to the valuation of Specialty Chemicals' fixed-price electricity agreement, the valuation of this agreement requires Superior to make assumptions about the long-term price of electricity in electricity markets for which active market information is not available. The impact of the assumption for the long-term forward price curve of electricity has a material impact on the fair value of this agreement. A $1/MWh change in the forecast price of electricity would result in a change in the fair value of this agreement of $0.6 million, with a corresponding impact to net earnings (loss) before income taxes.

All financial and non-financial derivatives are designated as held-for-trading upon their initial recognition.


As at                                                         June 30, 2015 
----------------------------------------------------------------------------
                                        Level 1   Level 2   Level 3   Total 
----------------------------------------------------------------------------
Assets                                                                      
Natural gas financial swaps - AECO            -       0.3         -     0.3 
Interest rate swaps - CDN$                    -       4.0         -     4.0 
Equity derivative contracts                   -       2.2         -     2.2 
Propane wholesale purchase and sale                                         
 contracts, net sale - Energy Services        -       0.8         -     0.8 
----------------------------------------------------------------------------
Total assets                                  -       7.3         -     7.3 
----------------------------------------------------------------------------
Liabilities                                                                 
Natural gas financial swaps - AECO            -      18.5         -    18.5 
Electricity swaps - Energy Services           -       6.0         -     6.0 
Foreign currency forward contracts,                                         
 net sale                                  71.2         -         -    71.2 
Interest rate swaps - CDN$                    -       0.2         -     0.2 
Debenture-embedded derivative                 -         -      19.9    19.9 
Propane wholesale purchase and sale                                         
 contracts, net sale - Energy Services        -       2.8         -     2.8 
Butane wholesale purchase and sale                                          
 contracts, net sale - Energy Services        -       0.1         -     0.1 
Fixed-price electricity purchase                                            
 agreements - Specialty Chemicals             -         -       1.4     1.4 
----------------------------------------------------------------------------
Total liabilities                          71.2      27.6      21.3   120.1 
----------------------------------------------------------------------------
Total net liability                       (71.2)    (20.3)    (21.3) (112.8)
----------------------------------------------------------------------------
Current portion of assets                     -       5.9         -     5.9 
Current portion of liabilities             34.8      18.8       0.1    53.7 
----------------------------------------------------------------------------
                                                                            
As at                                                     December 31, 2014 
----------------------------------------------------------------------------
                                        Level 1   Level 2   Level 3   Total 
----------------------------------------------------------------------------
Assets                                                                      
Natural gas financial swaps - AECO            -       0.2         -     0.2 
Electricity swaps - Energy Services           -       0.1         -     0.1 
Interest rate swaps - CDN$                    -       5.9         -     5.9 
Equity derivative contracts                   -       0.4         -     0.4 
Propane wholesale purchase and sale                                         
 contracts, net sale - Energy Services        -       7.6         -     7.6 
----------------------------------------------------------------------------
Total assets                                  -      14.2         -    14.2 
----------------------------------------------------------------------------
Liabilities                                                                 
Natural gas financial swaps - AECO            -      22.6         -    22.6 
Electricity swaps - Energy Services           -       4.0         -     4.0 
Foreign currency forward contracts,                                         
 net sale                                  49.6         -         -    49.6 
Interest rate swaps - CDN$                    -       0.1         -     0.1 
Debenture-embedded derivative                 -         -      14.2    14.2 
Propane wholesale purchase and sale                                         
 contracts, net sale - Energy Services        -      14.1         -    14.1 
Diesel wholesale purchase and sale                                          
 contracts, net sale - Energy Services        -       0.6         -     0.6 
WTI wholesale purchase and sale                                             
 contract, net sale - Energy Services         -       0.1         -     0.1 
Fixed-price electricity purchase                                            
 agreements - Specialty Chemicals             -         -       3.4     3.4 
Fixed-price natural gas purchase                                            
 agreements - Specialty Chemicals             -       0.1         -     0.1 
----------------------------------------------------------------------------
Total liabilities                          49.6      41.6      17.6   108.8 
----------------------------------------------------------------------------
Total net liability                       (49.6)    (27.4)    (17.6)  (94.6)
----------------------------------------------------------------------------
Current portion of assets                     -      10.7         -    10.7 
Current portion of liabilities             28.0      32.9       1.5    62.4 
----------------------------------------------------------------------------

The following table outlines quantitative information about how the fair values of these financial and non-financial assets and liabilities are determined, including valuation techniques and inputs used:


                                                          Valuation         
                                               Effective  Technique(s) and  
Description           Notional(1)    Term        Rate     Key Input(s)      
----------------------------------------------------------------------------
Level 1 fair value hierarchy:                                               
----------------------------------------------------------------------------
Foreign currency                                                            
 forward contracts,   US$590.6(3)  2015-2019     1.13     Quoted bid prices 
 net sale                                                 in the active     
                                                          market.           
----------------------------------------------------------------------------
Foreign currency         $Nil         N/A         N/A     Quoted bid prices 
 forward contracts,                                       in the active     
 balance sheet-                                           market.           
 related                                                                    
----------------------------------------------------------------------------
Level 2 fair value hierarchy:                                               
----------------------------------------------------------------------------
Natural gas                                                                 
 financial swaps-     23.2 GJ(2)   2015-2020   CDN $3.70  Discounted cash   
 AECO                                             /GJ     flow - Future cash
                                                          flows are         
                                                          estimated based on
                                                          forward market    
                                                          prices (from      
                                                          observable yield  
                                                          curves at the end 
                                                          of the reporting  
                                                          period) applied to
                                                          contract volumes, 
                                                          discounted at a   
                                                          rate that reflects
                                                          the credit risk of
                                                          various           
                                                          counterparties.   
----------------------------------------------------------------------------
Interest rate swaps                                                         
 (fixed and            $87.5(3)    2016-2017  6-month BA  Discounted cash   
 floating) - CDN$                              rate plus  flow - Future cash
                                               2.67% /    flows are         
                                              1-month BA  estimated based on
                                                 rate     forward interest  
                                                          rates and contract
                                                          interest rates,   
                                                          discounted at a   
                                                          rate that reflects
                                                          the credit risk of
                                                          various           
                                                          counterparties.   
----------------------------------------------------------------------------
Equity derivative                                                           
 contracts             $16.4(3)    2015-2018    $12.39    Discounted cash   
                                                /share    flow - Future cash
                                                          flows are         
                                                          estimated based on
                                                          equity derivative 
                                                          contracts.        
----------------------------------------------------------------------------
Diesel wholesale                                                            
 purchase and sale    1.1 USG(4)     2015        $1.90    Quoted bid prices 
 contracts, net sale                             /USG     for similar       
 - Energy Services                                        products in the   
                                                          active market.    
----------------------------------------------------------------------------
Propane wholesale                                                           
 purchase and sale    5.6 USG(4)   2015-2017     $0.41    Quoted bid prices 
 contracts, net sale                             /USG     for similar       
 - Energy Services                                        products in the   
                                                          active market.    
----------------------------------------------------------------------------
Electricity swaps -                                                         
 Energy Services       0.6MWh(5)   2015-2018    $36.30    Discounted cash   
                                                 /MWh     flow - Future cash
                                                          flows are         
                                                          estimated based on
                                                          forward market    
                                                          prices (from      
                                                          observable yield  
                                                          curves at the end 
                                                          of the reporting  
                                                          period) applied to
                                                          contract volumes, 
                                                          discounted at a   
                                                          rate that reflects
                                                          the credit risk of
                                                          various           
                                                          counterparties.   
----------------------------------------------------------------------------
Heating oil purchase                                                        
 and sale contracts   1.2 USG(4)     2015      US $2.59   Quoted bid prices 
 - Energy Services                               /USG     for similar       
                                                          products in the   
                                                          active market.    
----------------------------------------------------------------------------
Fixed-price natural                                                         
 gas purchase        9,080 DTH(7)    2015      $4.25/DTH  Quoted bid prices 
 agreements -                                             for similar       
 Specialty Chemicals                                      products in the   
                                                          active market.    
----------------------------------------------------------------------------
Level 3 fair value hierarchy:                                               
----------------------------------------------------------------------------
Debenture-embedded                                                          
 derivative            $316.3(3)  2016 -2019              Black-Scholes     
                                                          model - see       
                                                          "Valuation        
                                                          techniques and    
                                                   -      significant       
                                                          unobservable      
                                                          inputs" for       
                                                          further details.  
----------------------------------------------------------------------------
Fixed-price                                                                 
 electricity          32-45 MW(6)  2015-2017      $45     Discounted cash   
 purchase agreements                             /MWh     flow - see        
 - Specialty                                              "Valuation        
 Chemicals                                                techniques and    
                                                          significant       
                                                          unobservable      
                                                          inputs" for       
                                                          further details.  
----------------------------------------------------------------------------
(1) Notional values as at June 30, 2015.                                    
(2) Millions of gigajoules (GJ) purchased.                                  
(3) Millions of dollars.                                                    
(4) Millions of United States gallons (USG) purchased.                      
(5) Millions of mega-watt hours (MWh).                                      
(6) Megawatts (MW) on a 24/7 continual basis per year purchased.            
(7) Dekatherms (DTH) purchased.                                             

Valuation techniques and significant unobservable inputs


                               Significant                                  
Financial      Valuation       Unobservable   Sensitivity of Input to Fair  
 Instrument    Technique       Inputs         Value                         
----------------------------------------------------------------------------
Debenture-     Black-Scholes   Volatility -   The estimated fair value would
 embedded      model           20.61%-23.53%  increase (decrease) if:       
 derivative                    (Dec 2014 -    Volatility decreased          
                               23.47%-24.22%) (increased)                   
                               Risk-free rate Risk-free rate decreased      
                               - 0.95%-1.40%  (increased)                   
                               (Dec 2014 -                                  
                               1.34%-1.46%)                                 
----------------------------------------------------------------------------
Fixed-price    Discounted cash Forward        The estimated fair value would
 electricity   flow            electricity    increase (decrease) if:       
 purchase                      prices(1) -    Forward prices increased      
 agreements                    $39.25-$66.83  (decreased)                   
                               (Dec 2014 -    WACC decreased (increased)    
                               $35.40-$44.50)                               
                               WACC - 9% (Dec                               
                               2014 - 9%)                                   
----------------------------------------------------------------------------
(1) Net of greenhouse gas charge of $4/MWh.                                 

The change in the fair value of Superior's Level 3 financial instruments for the years ended June 30, 2015 and December 31, 2014 are as follows:


                                 Debenture -           Fixed Price          
                                    Embedded  Electricity Purchase          
Description                       Derivative            Agreements     Total
----------------------------------------------------------------------------
Balance at December 31, 2014          (14.2)                 (3.4)    (17.6)
Unrealized losses(1)                   (5.7)                   2.1     (3.6)
Other                                      -                 (0.1)     (0.1)
----------------------------------------------------------------------------
Balance at June 30, 2015              (19.9)                 (1.4)    (21.3)
----------------------------------------------------------------------------
(1) Recorded in "Unrealized losses on derivative financial instruments"     
    through net income in the Statement of Net Earnings and Total           
    Comprehensive Income.                                                   
                                                                            
                               For the three months    For the three months 
                                              ended                   ended 
                                      June 30, 2015           June 30, 2014 
----------------------------------------------------------------------------
                               Realized  Unrealized    Realized  Unrealized 
Description                 Gain (Loss) Gain (Loss) Gain (Loss) Gain (Loss) 
----------------------------------------------------------------------------
Natural gas financial swaps                                                 
 - AECO                            (4.5)        4.5        (0.1)       (0.9)
Energy Services electricity                                                 
 swaps                             (2.3)       (0.2)       (1.0)       (0.7)
Foreign currency forward                                                    
 contracts, net sale              (10.2)       22.9        (3.8)       22.2 
Foreign currency forward                                                    
 contracts, balance sheet-                                                  
 related                              -           -           -        (1.1)
Interest rate swaps                 3.0        (3.9)        1.3        (1.0)
Equity derivative contracts         0.9        (1.5)          -         2.4 
Energy Services' propane                                                    
 wholesale purchase and sale                                                
 contracts                         (6.0)       (0.8)          -         0.1 
Energy Services' WTI                                                        
 wholesale purchase and sale                                                
 contracts                          0.1           -           -         0.3 
Energy Services' butane                                                     
 wholesale purchase and sale                                                
 contracts                            -        (0.1)          -           - 
Energy Services' heating oil                                                
 purchase and sale contracts       (3.1)        2.2        (1.3)        0.4 
Energy Services' diesel                                                     
 purchase and sale contracts          -         0.4           -           - 
Specialty Chemicals' fixed-                                                 
 price electricity purchase                                                 
 agreements                        (0.5)        7.0        (0.4)        0.6 
----------------------------------------------------------------------------
Total (losses) gains on                                                     
 financial and non-financial                                                
 derivatives                      (22.6)       30.5        (5.3)       22.3 
----------------------------------------------------------------------------
Foreign currency translation                                                
 of senior secured notes            0.3         0.6           -         2.3 
Gain on debenture                                                           
 redemptions                        0.1           -           -           - 
Unrealized change in fair                                                   
 value of debenture-embedded                                                
 derivative                           -        16.1           -       (19.1)
----------------------------------------------------------------------------
Total (losses) gains              (22.2)       47.2        (5.3)        5.5 
----------------------------------------------------------------------------
                                                                            
                                 For the six months      For the six months 
                                              ended                   ended 
                                      June 30, 2015           June 30, 2014 
----------------------------------------------------------------------------
                               Realized  Unrealized    Realized  Unrealized 
Description                 Gain (Loss) Gain (Loss) Gain (Loss) Gain (Loss) 
----------------------------------------------------------------------------
Natural gas financial swaps                                                 
 - AECO                            (8.9)        4.1        (0.5)        9.5 
Energy Services electricity                                                 
 swaps                             (2.7)       (2.0)        7.7         4.4 
Foreign currency forward                                                    
 contracts, net sale              (21.1)      (21.4)       (7.3)        5.1 
Interest rate swaps                 3.0        (2.1)        1.3         0.2 
Equity derivative contracts         0.8         1.7           -         2.0 
Energy Services' propane                                                    
 wholesale purchase and sale                                                
 contracts                        (15.6)       14.5           -        (3.3)
Energy Services' WTI                                                        
 wholesale purchase and sale                                                
 contracts                          0.2         0.1           -           - 
Energy Services' butane                                                     
 wholesale purchase and sale                                                
 contracts                            -        (0.1)          -         0.3 
Energy Services' heating oil                                                
 purchase and sale contracts      (13.8)        6.1        (0.7)        0.1 
Energy Services' diesel                                                     
 purchase and sale contracts          -         0.6           -           - 
Specialty Chemicals' fixed-                                                 
 price electricity purchase                                                 
 agreements                        (1.7)        2.1         0.3         0.1 
----------------------------------------------------------------------------
Total gains (losses) on                                                     
 financial and non-financial                                                
 derivatives                      (59.8)        3.6         0.8        18.4 
----------------------------------------------------------------------------
Foreign currency translation                                                
 of senior secured notes            0.4        (2.6)          -        (0.2)
Gain on debenture                                                           
 redemptions                        0.1           -           -           - 
Unrealized change in fair                                                   
 value of debenture-embedded                                                
 derivative                           -        (5.7)          -       (16.8)
----------------------------------------------------------------------------
Total gains (losses)              (59.3)       (4.7)        0.8         1.4 
----------------------------------------------------------------------------

Realized gains or losses on financial and non-financial derivatives and foreign currency translation gains or losses on the revaluation of Canadian domiciled U.S.-denominated working capital have been classified on the statement of net earnings based on the underlying nature of the financial statement line item and/or the economic exposure being managed.

Offsetting of financial instruments

Financial assets and liabilities are offset and the net amount reported on the consolidated balance sheets when Superior currently has a legally enforceable right to set-off the recognized amounts and there is an intention to settle on a net basis or realize the asset and settle the liability simultaneously. In the normal course of business, Superior enters into various master netting agreements or other similar arrangements that do not meet the criteria for offsetting, but that do, however, still allow for the related amount to be set-off in certain circumstances, such as bankruptcy or the termination of contracts.


Derivative Assets                 Amounts Offset          Amounts not offset
----------------------------------------------------------------------------
                                 Gross       Net                   Cash     
                     Gross Liabilities   Amounts   Financial Collateral     
June 30, 2015       Assets      Offset Presented Instruments    Pledged  Net
----------------------------------------------------------------------------
Natural gas                                                                 
 financial swaps -                                                          
 AECO(1)               0.3           -       0.3           -          -  0.3
Propane purchase and                                                        
 sale contracts -                                                           
 Energy Services(2)    0.1           -       0.1           -          -  0.1
----------------------------------------------------------------------------
Total                  0.4           -       0.4           -          -  0.4
----------------------------------------------------------------------------
(1) Subject to an enforceable master netting agreement in the form of an    
    International Swaps and Derivatives Association (ISDA) agreement.       
(2) Regularly settled gross in the normal course of business.               
                                                                            
                                                                            
Derivative                                                                  
 Liabilities                      Amounts Offset          Amounts not offset
----------------------------------------------------------------------------
                                Gross        Net                   Cash     
                         Gross Assets    Amounts   Financial Collateral     
June 30, 2015      Liabilities Offset  Presented Instruments    Pledged  Net
----------------------------------------------------------------------------
Natural gas                                                                 
 financial swaps -                                                          
 AECO(1)                  18.9   (0.4)      18.5           -          - 18.5
Electricity swaps                                                           
 - Energy                                                                   
 Services(1)               6.5   (0.5)       6.0           -          -  6.0
Propane wholesale                                                           
 purchase and sale                                                          
 contracts -                                                                
 Energy                                                                     
 Services(3)               3.7   (0.8)       2.9           -          -  2.9
Heating oil                                                                 
 purchase and sale                                                          
 contracts -                                                                
 Energy                                                                     
 Services(2)               0.9   (0.9)         -           -          -    -
Fixed-price                                                                 
 electricity                                                                
 purchase                                                                   
 agreements -                                                               
 Specialty                                                                  
 Chemicals(4)             36.7  (35.3)       1.4           -          -  1.4
----------------------------------------------------------------------------
Total                     66.7  (37.9)      28.8           -          - 28.8
----------------------------------------------------------------------------
(1) Subject to an enforceable master netting agreement in the form of an    
    ISDA agreement.                                                         
(2) Regularly settled net in the normal course of business and considered   
    standardized brokerage accounts.                                        
(3) Regularly settled gross in the normal course of business.               
(4) Standard terms of the Power Purchase Agreement (PPA) allowing net       
    settlement of payments in the normal course of business.                
                                                                            
Derivative                                                                  
 Assets                           Amounts Offset          Amounts not offset
----------------------------------------------------------------------------
                               Gross                               Cash     
December 31,       Gross Liabilities Net Amounts   Financial Collateral     
 2014             Assets      Offset   Presented Instruments    Pledged  Net
----------------------------------------------------------------------------
Natural gas                                                                 
 financial swaps                                                            
 - AECO(1)           0.2           -         0.2           -          -  0.2
Electricity                                                                 
 swaps - Energy                                                             
 Services(1)         0.2       (0.1)         0.1           -          -  0.1
Propane                                                                     
 purchases and                                                              
 sale contracts                                                             
 - Energy                                                                   
 Services (2)(3)     0.1           -         0.1           -          -  0.1
----------------------------------------------------------------------------
Total                0.5       (0.1)         0.4           -          -  0.4
----------------------------------------------------------------------------
(1) Subject to an enforceable master netting agreement in the form of an    
    ISDA agreement.                                                         
(2) Regularly settled net in the normal course of business and considered   
    standardized brokerage accounts.                                        
(3) Regularly settled gross in the normal course of business.               
                                                                            
                                                                            
                                                                            
Derivative                                                                  
 Liabilities                      Amounts Offset          Amounts not offset
----------------------------------------------------------------------------
                                 Gross       Net                   Cash     
                         Gross  Assets   Amounts   Financial Collateral     
December 31, 2014  Liabilities  Offset Presented Instruments    Pledged  Net
----------------------------------------------------------------------------
Natural gas                                                                 
 financial swaps -                                                          
 AECO(1)                  22.9    (0.3)     22.6           -          - 22.6
Electricity swaps -                                                         
 Energy Services(1)        4.8    (0.8)      4.0           -          -  4.0
Propane wholesale                                                           
 purchase and sale                                                          
 contracts - Energy                                                         
 Services(3)              24.4   (10.3)     14.1           -          - 14.1
Heating oil                                                                 
 purchase and sale                                                          
 contracts - Energy                                                         
 Services(2)               7.5    (7.5)        -           -          -    -
Fixed-price                                                                 
 electricity                                                                
 purchase                                                                   
 agreements -                                                               
 Specialty                                                                  
 Chemicals(4)             41.8   (38.4)      3.4           -          -  3.4
Fixed-price natural                                                         
 gas agreements -                                                           
 Specialty                                                                  
 Chemicals(4)              0.1       -       0.1           -          -  0.1
----------------------------------------------------------------------------
Total                    101.5   (57.3)     44.2           -          - 44.2
----------------------------------------------------------------------------
(1) Subject to an enforceable master netting agreement in the form of an    
    ISDA agreement.                                                         
(2) Regularly settled net in the normal course of business and considered   
    standardized brokerage accounts.                                        
(3) Regularly settled gross in the normal course of business.               
(4) Standard terms of the PPA allowing net settlement of payments in the    
    normal course of business.                                              

The following summarizes Superior's classification and measurement of financial assets and liabilities:


                                              Classification     Measurement
----------------------------------------------------------------------------
Financial Assets                                                            
Cash and cash equivalents              Loans and receivables  Amortized cost
Trade and other receivables            Loans and receivables  Amortized cost
Derivative assets                                     FVTNEL      Fair Value
Notes and finance lease receivables    Loans and receivables  Amortized cost
Financial liabilities                                                       
Trade and other payables                   Other liabilities  Amortized cost
Dividends and interest payable             Other liabilities  Amortized cost
Borrowing                                  Other liabilities  Amortized cost
Convertible unsecured subordinated                                          
 debentures(1)                             Other liabilities  Amortized cost
Derivative liabilities                                FVTNEL      Fair Value
----------------------------------------------------------------------------
(1) Except for derivatives embedded in the related financial instruments    
    that are classified as FVTNEL and measured at fair value.               

Non-Derivative Financial Instruments

The fair value of Superior's cash and cash equivalents, trade and other receivables, notes and finance lease receivables, trade and other payables, and dividends and interest payable approximates their carrying value due to the short-term nature of these amounts. The carrying value and the fair value of Superior's borrowing and convertible unsecured subordinated debentures are provided in Notes 12 and 13.

Financial Instruments - Risk Management

Market Risk

Derivative and non-financial derivatives are used by Superior to manage its exposure to fluctuations in foreign currency exchange rates, interest rates and commodity prices. Superior assesses the inherent risks of these instruments by grouping derivative and non-financial derivatives related to the exposures these instruments mitigate. Superior's policy is not to use derivative or non-financial derivative instruments for speculative purposes. Superior does not formally designate its derivatives as hedges and, as a result, Superior does not apply hedge accounting and is required to designate its derivatives and non-financial derivatives as held-for-trading.

Energy Services enters into natural gas financial swaps to manage its economic exposure of providing fixed-price natural gas to its customers and maintains its historical natural gas swap positions with six counterparties. Energy Services monitors its fixed-price natural gas positions on a daily basis to monitor compliance with established risk management policies. Energy Services maintains a substantially balanced fixed-price natural gas position in relation to its customer supply commitments.

Energy Services enters into electricity financial swaps with four counterparties to manage the economic exposure of providing fixed-price electricity to its customers. Energy Services monitors its fixed-price electricity positions on a daily basis to monitor compliance with established risk management policies. Energy Services maintains a substantially balanced fixed-price electricity position in relation to its customer supply commitments.

Specialty Chemicals has entered into a fixed-price electricity purchase agreement to manage the economic exposure of certain chemical facilities to changes in the market price of electricity, in a market where the price of electricity is not fixed. The fair value with respect to this agreement is with a single counterparty.

Energy Services enters into various propane forward purchase and sale agreements with more than 20 counterparties to manage the economic exposure of its wholesale customer supply contracts. Energy Services monitors its fixed-price propane positions on a daily basis to monitor compliance with established risk management policies. Energy Services maintains a substantially balanced fixed-price propane gas position in relation to its wholesale customer supply commitments.

Superior, on behalf of its operating divisions, enters into foreign currency forward contracts with 12 counterparties to manage the economic exposure of its operations to movements in foreign currency exchange rates. Energy Services contracts a portion of its fixed-price natural gas, and propane purchases and sales in U.S. dollars and enters into forward U.S. dollar purchase contracts to create an effective Canadian dollar fixed-price purchase cost. Specialty Chemicals enters into U.S. dollar forward sales contracts on an ongoing basis to mitigate the impact of foreign exchange fluctuations on sales margins on production from its Canadian plants that is sold in U.S. dollars. Interest expense on Superior's U.S. dollar debt is also used to mitigate the impact of foreign exchange fluctuations.

Superior has interest rate swaps with four counterparties to manage the interest rate mix of its debt portfolio and related overall cost of borrowing. Superior manages its overall liquidity risk in relation to its general funding requirements by utilizing a mix of short-term and longer-term debt instruments. Superior reviews its mix of short-term and longer-term debt instruments on an ongoing basis to ensure it is able to meet its liquidity requirements.

Credit Risk

Superior utilizes a variety of counterparties in relation to its derivative and non-financial derivative instruments in order to mitigate its counterparty risk. Superior assesses the credit-worthiness of its significant counterparties at the inception and throughout the term of a contract. Superior is also exposed to customer credit risk. Energy Services deals with a large number of small customers, thereby reducing this risk. Specialty Chemicals, due to the nature of its operations, sells its products to a relatively small number of customers. Specialty Chemicals mitigates its customer credit risk by actively monitoring the overall credit-worthiness of its customers. Fixed Price Energy Services has minimal exposure to customer credit risk as local natural gas and electricity distribution utilities have been mandated, for a nominal fee, to provide Energy Services with invoicing, collection and the assumption of bad debt risk for residential customers. Energy Services actively monitors the credit-worthiness of its commercial customers. Overall, Superior's credit quality is enhanced by its portfolio of customers, which is diversified across geographical (primarily Canada and the United States) and end-use (primarily commercial, residential and industrial) markets.

Allowances for doubtful accounts and past due receivables are reviewed by Superior at each balance sheet date. Superior updates its estimate of the allowance for doubtful accounts based on the evaluation of the recoverability of trade receivables with each customer, taking into account historical collection trends of past due accounts and current economic conditions. Trade receivables are written-off once it is determined they are uncollectible.

Pursuant to their respective terms, trade receivables, before deducting an allowance for doubtful accounts, are aged as follows:


                                                      June 30    December 31
                                                         2015           2014
----------------------------------------------------------------------------
Current                                                 231.7          282.4
Past due less than 90 days                               72.6          101.4
Past due over 90 days                                    26.2           17.2
----------------------------------------------------------------------------
Trade receivables                                       330.5          401.0
----------------------------------------------------------------------------

The current portion of Superior's trade receivables is neither impaired nor past due and there are no indications as of the reporting date that the debtors will not make payment.

Superior's trade receivables are stated after deducting a provision of $9.4 million as at June 30, 2015 (December 31, 2014 - $8.5 million). The movement in the provision for doubtful accounts is as follows:


                                                     June 30    December 31 
                                                        2015           2014 
----------------------------------------------------------------------------
Allowance for doubtful accounts, at the                                     
 beginning of the period                                (8.5)          (7.3)
  Additions                                                -          (10.7)
  Impairment losses recognized on receivables           (5.4)               
  Amounts written off during the year as                                    
   uncollectible                                         2.7            8.2 
  Amounts recovered                                      1.8            1.3 
----------------------------------------------------------------------------
Allowance for doubtful accounts at the end of                               
 the period                                             (9.4)          (8.5)
----------------------------------------------------------------------------

Liquidity Risk

Liquidity risk is the risk that Superior cannot meet a demand for cash or fund an obligation as it comes due. Liquidity risk also includes the risk of not being able to liquidate assets in a timely manner at a reasonable price.

To ensure it is able to react to contingencies and investment opportunities quickly, Superior maintains sources of liquidity at the corporate and subsidiary levels. The main sources of liquidity are cash and other financial assets, the undrawn committed revolving-term bank credit facility, equity markets and debenture markets.

Superior is subject to the risks associated with debt financing, including the ability to refinance indebtedness at maturity. Superior believes these risks are mitigated through the use of long-term debt secured by high-quality assets, maintaining debt levels that in management's opinion are appropriate, and by diversifying maturities over an extended period. Superior also seeks to include in its agreements terms that protect it from liquidity issues of counterparties that might otherwise impact liquidity.

Superior's contractual obligations associated with its financial liabilities are as follows:


                                                              2020 and      
                               2015  2016  2017  2018  2019 thereafter Total
----------------------------------------------------------------------------
Borrowing                      69.8  22.8   8.7   8.1 339.2      207.5 656.1
Convertible unsecured                                                       
 subordinated debentures          -  68.2     - 146.4  86.3          - 300.9
US$ foreign currency forward                                                
 sales contracts              107.0 192.6 147.0  96.0  48.0          - 590.6
CDN$ natural gas purchases      8.6   0.5   0.2     -     -          -   9.3
US$ natural gas purchases      13.7     -     -     -     -          -  13.7
US$ propane purchases           8.4   5.6     -     -     -          -  14.0
US$ heating oil purchases       8.8   8.5   0.4     -     -          -  17.7
US$ butane purchases            0.1     -     -     -     -          -   0.1
Fixed-price electricity                                                     
 purchase commitments           8.9  17.7  17.7     -     -          -  44.3
----------------------------------------------------------------------------

Superior's contractual obligations are considered normal-course operating commitments and do not include the impact of mark-to-market fair values on financial and non-financial derivatives. Superior expects to fund these obligations through a combination of cash flow from operations, proceeds on revolving term bank credit facilities and proceeds on the issuance of share capital. Superior's financial instruments' sensitivities as at June 30, 2015 are consistent with those disclosed in Superior's 2014 annual consolidated financial statements.

15. Income Taxes

Consistent with prior periods, Superior recognizes a provision for income taxes for its subsidiaries that are subject to current and deferred income taxes, including United States income tax and Chilean income tax.

Total income tax (recovery) expense, comprised of current taxes and deferred taxes for the three and six months ended June 30, 2015 was $(3.2) million and $20.5 million respectively, compared to $3.0 million and $19.8 million in the comparative period. For the three and six months ended June 30, 2015, deferred income tax expense from operations in Canada, the United States and Chile was $(3.7) million and $19.2 million, respectively, which resulted in a corresponding total net deferred income tax asset of $257.6 million at June 30, 2015.

As previously disclosed, on April 2, 2013 Superior received, from the CRA, Notices of Reassessment for Superior's 2009 and 2010 taxation years reflecting the CRA's intention to challenge the tax consequences of Superior's corporate conversion transaction (Conversion) which occurred on December 31, 2008. Subsequently on November 7, 2014, Superior received the Notices of Reassessment for the 2011 to 2013 taxation years. The CRA's position is based on the acquisition of control rules and the general anti-avoidance rules in the Income Tax Act (Canada).

The table below summarizes Superior's estimated tax liabilities and payment requirements associated with the received and anticipated Notices of Reassessment. Upon receipt of the Notices of Reassessment, 50% of the taxes payable pursuant to such Notices of Reassessment must be remitted to the CRA.


                                       50% of the Taxes           Month/Year
Taxation Year    Taxes Payable(1)(2)       Payable(1)(2)        Paid/Payable
----------------------------------------------------------------------------
2009/2010                   $13.0                   $6.5          April 2013
2011                        $12.8                   $6.4       February 2015
2012                         $8.8                   $4.4       February 2015
2013                         $9.4                   $4.7       February 2015
2014                        $13.0(3)                $6.5                2015
2015                        $12.0(3)                $6.0                2016
----------------------------------------------------------------------------
Total                       $69.0                  $34.5                    
----------------------------------------------------------------------------
(1) In millions of dollars.                                                 
(2) Includes estimated interest and penalties.                              
(3) Estimated based on Superior's previously filed tax returns, 2014 results
    and the midpoint of Superior's 2015 outlook.                            

On May 8, 2013 and August 7, 2013, respectively, Superior filed a Notice of Objection and a Notice of Appeal with respect to the Notice of Reassessment received on April 2, 2013. On February 4, 2015 Superior filed a Notice of Objection with respect to the Notice of Reassessment received on November 7, 2014. Superior anticipates that if the case proceeds in the Tax Court of Canada, the case could be heard within two years, with a decision rendered six to 12 months after completion of the court hearings. If a decision of the Tax Court of Canada were to be appealed, the appeal process could reasonably be expected to take an additional two years. If Superior receives a positive decision then any taxes, interest and penalties paid to the CRA will be refunded plus interest and if Superior is unsuccessful then any remaining taxes payable plus interest and penalties will have to be remitted.

Superior remains confident in the appropriateness of its tax filing position and the expected tax consequences of the Conversion and intends to vigorously defend such position and intends to file its future tax returns on a basis consistent with its view of the outcome of the Conversion.

16. Total Equity

Superior is authorized to issue an unlimited number of common shares and an unlimited number of preferred shares. The holders of common shares are entitled to dividends if, as and when, declared by the Board of Directors; to one vote per share at shareholders' meetings; and upon liquidation, dissolution or winding up of Superior to receive pro rata the remaining property and assets of Superior, subject to the rights of any shares having priority over the common shares, of which none is outstanding.

Preferred shares are issuable in series with each class of preferred share having such rights as the Board of Directors may determine. Holders of preferred shares are entitled, in priority over holders of common shares, to be paid ratably with holders of each other series of preferred shares the amount of accumulated dividends, if any, specified to be payable preferentially to the holders of such series upon liquidation, dissolution or winding up of Superior. Superior has no preferred shares outstanding.


                                                  Issued Number of          
                                                     Common Shares    Total 
                                                        (millions)   Equity 
----------------------------------------------------------------------------
Total Equity, December 31, 2014                              126.2    550.4 
  Net earnings                                                   -     31.1 
  Other comprehensive income                                     -     31.3 
  Conversion of 7.5% convertible unsecured                                  
   subordinated debentures                                     0.5      5.2 
  Option value associated with the redemption of                            
   the convertible debentures                                    -     (0.2)
  Dividends declared to shareholders (1)                         -    (45.5)
----------------------------------------------------------------------------
Total Equity, June 30, 2015                                  126.7    572.3 
----------------------------------------------------------------------------
(1) Dividends to shareholders are declared at the discretion of Superior's  
    Board of Directors. During the six months ended June 30, 2015, Superior 
    paid dividends of $45.5 million or $0.36 per share (June 30, 2014 -     
    $37.9 million or $0.30 per share).                                      
                                                                            
                                                        June 30 December 31 
                                                           2015        2014 
----------------------------------------------------------------------------
Accumulated other comprehensive loss before                                 
 reclassification                                                           
Currency translation adjustment                                             
  Balance at the beginning of the period                   40.0         4.0 
  Unrealized foreign currency gains on translation                          
   of foreign operations                                   32.8        36.0 
----------------------------------------------------------------------------
  Balance at the end of the period                         72.8        40.0 
----------------------------------------------------------------------------
                                                                            
Actuarial defined benefits                                                  
  Balance at the beginning of the period                   (9.8)       (5.5)
  Actuarial defined benefit loss                           (2.1)       (5.6)
  Income tax recovery (expense) on actuarial gain           0.6         1.3 
----------------------------------------------------------------------------
  Balance at the end of the period                        (11.3)       (9.8)
----------------------------------------------------------------------------
Total accumulated other comprehensive income before                         
 reclassification                                          61.5        30.2 
----------------------------------------------------------------------------
                                                                            
Amounts reclassified from accumulated other                                 
 comprehensive income                                                       
Accumulated derivative losses                                               
  Balance at the beginning of the period                   (6.9)       (6.4)
  Reclassification of derivative losses previously                          
   deferred(1)                                                -        (0.5)
----------------------------------------------------------------------------
  Balance at the end of the period                         (6.9)       (6.9)
----------------------------------------------------------------------------
Total amounts reclassified from accumulated other                           
 comprehensive loss                                        (6.9)       (6.9)
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
Accumulated other comprehensive income at the end of                        
 the period                                                54.6        23.3 
----------------------------------------------------------------------------
                                                                            
(1) The reclassification of derivative losses previously deferred is        
    included in unrealized losses on derivative financial instruments on the
    statement of net earnings and total comprehensive income.               

Other Capital Disclosures

Additional Capital Disclosure

Superior's objectives when managing capital are: (i) to maintain a flexible capital structure to preserve its ability to meet its financial obligations, including potential obligations from acquisitions; and (ii) to safeguard its assets while maximizing the growth of its businesses and returns to its shareholders.

In the management of capital, Superior includes shareholders' equity (excluding accumulated other comprehensive gain (loss)), current and long-term borrowing, convertible unsecured subordinated debentures, securitized accounts receivable and cash and cash equivalents. Superior manages its capital structure and makes adjustments in light of changes in economic conditions and the nature of the underlying assets. In order to maintain or adjust the capital structure, Superior may adjust the amount of dividends to Shareholders, issue additional share capital, issue new debt or convertible unsecured subordinated debentures with different characteristics.

Superior monitors its capital based on the ratio of senior and total debt outstanding to net earnings before interest, taxes, depreciation, amortization and other non-cash expenses (EBITDA), as defined by its revolving term credit facility, and the ratio of total debt outstanding to EBITDA. Superior's reference to EBITDA as defined by its revolving term credit facility may be referred to as compliance EBITDA in its other public reports.

Superior is subject to various financial covenants in its credit facility agreements, including senior debt, total debt to EBITDA ratio and restricted payments test, which are measured on a quarterly basis. As at June 30, 2015 and December 31, 2014 Superior was in compliance with all of its financial covenants.

Superior's financial objectives and strategy related to managing its capital as described above remained unchanged from the prior fiscal year. Superior believes that its debt to EBITDA ratios are within reasonable limits, in light of Superior's size, the nature of its businesses and its capital management objectives.

Financial Measures Utilized for Bank Covenant Purposes

Compliance EBITDA

Compliance EBITDA represents earnings before interest, taxes, depreciation, amortization and other non-cash expenses calculated on a 12-month trailing basis giving pro forma effect to acquisitions and divestitures and is used by Superior to calculate its debt covenants and other credit information. Compliance EBITDA is not a defined performance measure under IFRS. Superior's calculation of compliance EBITDA may differ from similar calculations used by comparable entities.

The capital structure of Superior and the calculation of its key capital ratios are as follows:


                                                     June 30    December 31 
As at                                                   2015           2014 
----------------------------------------------------------------------------
Total shareholders' equity                             572.3          550.4 
Exclude accumulated other comprehensive gain           (54.6)         (23.3)
----------------------------------------------------------------------------
Shareholders' equity excluding accumulated                                  
 other comprehensive gain                              517.7          527.1 
                                                                            
Current borrowing(1)                                    69.8           66.7 
Borrowing(1)                                           586.3          466.5 
Less: Senior unsecured debt                           (200.0)        (200.0)
----------------------------------------------------------------------------
Consolidated secured debt                              456.1          333.2 
Add: Senior unsecured debt                             200.0          200.0 
----------------------------------------------------------------------------
Consolidated debt                                      656.1          533.2 
Convertible unsecured subordinated                                          
 debentures(1)                                         316.3          494.2 
----------------------------------------------------------------------------
Total debt                                             972.4        1,027.4 
----------------------------------------------------------------------------
Total capital                                        1,490.1        1,554.5 
----------------------------------------------------------------------------
(1) Borrowing and convertible unsecured subordinated debentures are before  
    deferred financing fees and option value.                               
                                                    June 30    December 31  
Twelve months ended                                     2015           2014 
----------------------------------------------------------------------------
  Net earnings                                          32.0           56.9 
  Adjusted for:                                                             
    Finance expense                                     55.9           52.7 
    Realized gains on derivative financial                                  
     instruments included in finance expense             7.5            5.6 
    Depreciation included in selling,                                       
     distribution and administrative costs              52.1           47.2 
    Depreciation included in cost of sales              54.8           50.0 
    Losses on disposal of assets                         1.6            1.0 
    Gain on sale of customer list                       (0.3)          (3.7)
    Amortization of intangible assets                    6.8            4.9 
    Income tax expense                                  16.5           15.8 
    Unrealized (gains) losses on derivative                                 
     financial instruments                              58.1           52.0 
----------------------------------------------------------------------------
Compliance EBITDA(1)                                   285.0          282.4 
----------------------------------------------------------------------------
 (1)EBITDA, as defined by Superior's revolving-term credit facility, is     
    calculated on a trailing 12-month basis taking into consideration the   
    pro-forma impact of acquisitions and dispositions in accordance with the
    requirements of Superior's credit facility. Superior's calculation of   
    EBITDA and debt to EBITDA ratios may differ from those of similar       
    entities.                                                               
                                                     June 30     December 31
                                                         2015           2014
----------------------------------------------------------------------------
Consolidated secured debt to compliance EBITDA          1.6:1          1.2:1
Consolidated debt to compliance EBITDA                  2.3:1          1.9:1
Total debt to compliance EBITDA                         3.4:1          3.6:1
----------------------------------------------------------------------------

17. Net Earnings per Share


                                      Three months ended    Six months ended
                                                 June 30             June 30
                                          2015   2014(1)      2015   2014(1)
----------------------------------------------------------------------------
Net (loss) earnings per share                                               
 computation, basic                                                         
  Net (loss) earnings for the period      40.9       5.9      31.1      56.0
  Weighted average shares                                                   
   outstanding (millions)                126.7     126.2     126.4     126.2
----------------------------------------------------------------------------
Net (loss) earnings per share, basic      0.32      0.05      0.25      0.44
----------------------------------------------------------------------------
(1) The three and six months ended June 30, 2014 have been revised to       
    include the impact of first and second quarter adjustments (refer to    
    Note 23 for details), as well as to include the reclassification of     
    previously disclosed discontinued operations into continuing operations.
                                                                            
                                     Three months ended     Six months ended
                                                June 30              June 30
                                          2015  2014(1)       2015   2014(1)
----------------------------------------------------------------------------
Net (loss) earnings per share                                               
 computation, diluted                                                       
  Net (loss) earnings for the period      37.5     (3.1)      33.3      59.5
  Weighted average shares                                                   
   outstanding (millions)                148.5    148.5      136.4     135.3
----------------------------------------------------------------------------
Net (loss) earnings per share,                                              
 diluted                                  0.25    (0.02)      0.24      0.44
----------------------------------------------------------------------------
(1) The three and six months ended June 30, 2014 have been revised to       
    include the impact of first and second quarter adjustments (refer to    
    Note 23 for details), as well as to include the reclassification of     
    previously disclosed discontinued operations into continuing operations.

The following potential ordinary shares are anti-dilutive and are therefore excluded from the weighted average number of ordinary shares for the purposes of diluted earnings per share in each period.


                                      Three months ended    Six months ended
                                                 June 30             June 30
(millions)          Maturity    Note      2015      2014      2015      2014
----------------------------------------------------------------------------
Convertible                                                                 
 Debentures                                                                 
  5.75%             June 2017    13          -       9.1         -         -
  6.00%             June 2018    13          -         -         -       9.9
  7.50%             October 2016 13          -         -       5.8       6.6
  6.00%             June 2019    13          -         -       6.1       5.8
----------------------------------------------------------------------------
Total anti-dilutive                                                         
 instruments                                 -       9.1      11.9      22.3
----------------------------------------------------------------------------
----------------------------------------------------------------------------

18. Supplemental Disclosure of Non-Cash Operating Working Capital Changes


                                     Three months ended    Six months ended 
                                                June 30             June 30 
                                         2015   2014(1)      2015   2014(1) 
----------------------------------------------------------------------------
Changes in non-cash working capital:                                        
  Trade receivables and other            68.9     145.4      82.8      92.4 
  Inventories                            (4.4)      8.7      13.6      39.5 
  Trade and other payables              (26.9)    (50.0)    (79.2)    (88.1)
  Other                                  (4.5)    (17.9)     37.6     (15.7)
----------------------------------------------------------------------------
                                         33.1      86.2      54.8      28.1 
----------------------------------------------------------------------------
(1) The three and six months ended June 30, 2014 have been revised to       
    include the impact of first and second quarter adjustments (refer to    
    Note 23 for details), as well as to include the reclassification of     
    previously disclosed discontinued operations into continuing operations.

19. Supplemental Disclosure of Condensed Consolidated Statement of Comprehensive Income


                                     Three months ended    Six months ended 
                                                June 30             June 30 
                                         2015   2014(1)      2015   2014(1) 
----------------------------------------------------------------------------
Revenues                                                                    
  Revenue from products                 740.2     879.2   1,743.4   2,141.2 
  Revenue from the rendering of                                             
   services                              13.0      12.8      27.0      29.6 
  Rental revenue                          5.6       7.0      10.4      12.1 
  Construction contract revenue           1.3         -       1.8       0.3 
  Realized losses on derivative                                             
   financial instruments                (16.2)     (3.6)    (32.1)     (5.5)
----------------------------------------------------------------------------
                                        743.9     895.4   1,750.5   2,177.7 
----------------------------------------------------------------------------
                                                                            
Cost of sales (includes products and                                        
 services)                                                                  
  Cost of products and services        (525.3)   (684.1) (1,207.5) (1,672.2)
  Depreciation included in cost of                                          
   sales                                (15.3)    (12.1)    (28.8)    (24.0)
  Realized (losses) gains on                                                
   derivative financial instruments     (10.5)     (3.2)    (31.7)      4.7 
----------------------------------------------------------------------------
                                       (551.1)   (699.4) (1,268.0) (1,691.5)
----------------------------------------------------------------------------
                                                                            
Selling, distribution and                                                   
 administrative costs                                                       
  Selling, general and                                                      
   administrative costs                 (57.6)    (53.3)   (109.0)   (110.3)
  Restructuring costs                       -      (9.3)        -     (11.1)
  Employee costs                        (95.3)    (87.6)   (213.9)   (194.1)
  Employee future benefit expense        (1.0)     (1.1)     (2.0)     (2.0)
  Depreciation included in selling,                                         
   distribution and administrative                                          
   costs                                (13.2)    (10.0)    (26.3)    (21.4)
  Amortization of intangible assets      (1.7)     (0.6)     (3.4)     (1.5)
  Vehicle operating expense              (9.5)    (11.3)    (30.1)    (33.0)
  Facility maintenance expense           (8.7)     (7.3)    (16.1)    (14.0)
  Gain (loss) on disposal of assets       0.3       3.8      (0.2)      3.8 
  Realized gains on LTIP                  0.8                 0.8           
  Realized (losses) gains on the                                            
   translation of U.S. denominated                                          
   net working capital                   (1.5)     (2.6)      4.9      (0.5)
----------------------------------------------------------------------------
                                       (187.4)   (179.3)   (395.3)   (384.1)
----------------------------------------------------------------------------
                                                                            
Finance expense                                                             
  Interest on borrowing                  (5.5)     (4.2)    (11.4)     (8.5)
  Interest on convertible unsecured                                         
   subordinated debentures               (7.6)     (7.6)    (15.1)    (15.1)
  Interest on obligations under                                             
   finance leases                        (1.0)     (1.1)     (1.9)     (2.2)
  Unwinding of discount on                                                  
   debentures, borrowing and                                                
   decommissioning liabilities           (4.0)     (1.7)     (5.7)     (3.2)
  Realized gain recorded to finance                                         
   expense                                3.2       1.3       3.2       1.3 
----------------------------------------------------------------------------
                                        (14.9)    (13.3)    (30.9)    (27.7)
----------------------------------------------------------------------------
(1) The three and six months ended June 30, 2014 have been revised to       
    include the impact of first and second quarter adjustments (refer to    
    Note 23 for details), as well as to include the reclassification of     
    previously disclosed discontinued operations into continuing operations.

20. Related Party Transactions

Transactions between Superior and its subsidiaries, which are related parties, have been eliminated on consolidation and are not disclosed in this note.

For the three and six months ended June 30, 2015, Superior incurred $0.2 (June 30, 2014 - $nil) and $0.4 million (June 30, 2014 - $0.2 million), respectively, in legal fees, with Norton Rose Canada LLP, a related party with Superior because a member of Superior's Board of Directors is a Partner at the law firm.

21. Reportable Segment Information

Superior has adopted IFRS 8 - Operating Segments, which requires operating segments to be identified on the basis of internal reports about components of the Company that are regularly reviewed by the chief operating decision-maker in order to allocate resources to the segments and to assess their performance.

Superior operates three distinct reportable operating segments: Energy Services, Specialty Chemicals and Construction Products Distribution. Superior's Energy Services' operating segment provides distribution, wholesale procurement and related services in relation to propane, heating oil and other refined fuels under the following: Canadian propane division and U.S. refined fuels division. Energy Services also provides fixed-price natural gas and electricity supply services under Superior Energy Management. Specialty Chemicals' is a leading supplier of sodium chlorate and technology to the pulp and paper industries and a regional supplier of potassium and chloralkali products in the U.S. Midwest. Construction Products Distribution is one of the largest distributors of commercial and industrial insulation in North America and the largest distributor of specialty construction products to the walls and ceilings industry in Canada.

Superior's corporate office arranges intersegment foreign exchange contracts from time to time. Realized gains and losses pertaining to intersegment foreign exchange gains and losses are eliminated under the corporate cost column. All of Superior's operating segments conduct business with customers of various sizes and do not rely extensively on any single customer for their revenue stream.


For the three                           Construction                        
 months ended          Energy Specialty     Products                  Total 
 June 30, 2015       Services Chemicals Distribution Corporate Consolidated 
----------------------------------------------------------------------------
Revenue                 361.5     143.5        238.9         -        743.9 
Cost of sales                                                               
 (includes                                                                  
 products &                                                                 
 services)             (265.6)   (106.1)      (179.4)        -       (551.1)
----------------------------------------------------------------------------
Gross Profit             95.9      37.4         59.5         -        192.8 
Expenses                                                                    
 Depreciation                                                               
  included in                                                               
  selling,                                                                  
  distribution                                                              
  and                                                                       
  administrative                                                            
  costs                 (11.5)        -         (1.7)        -        (13.2)
 Amortization of                                                            
  intangible                                                                
  assets                 (1.5)        -            -      (0.2)        (1.7)
 Selling,                                                                   
  distribution                                                              
  and                                                                       
  administrative                                                            
  costs                 (80.8)    (42.7)       (46.8)     (2.2)      (172.5)
 Finance expense         (0.7)     (0.2)        (0.2)    (13.8)       (14.9)
 Unrealized gains                                                           
  on derivative                                                             
  financial                                                                 
  instruments             6.0       7.0            -      34.2         47.2 
----------------------------------------------------------------------------
                        (88.5)    (35.9)       (48.7)     18.0       (155.1)
----------------------------------------------------------------------------
Net earnings                                                                
 before income                                                              
 taxes                    7.4       1.5         10.8      18.0         37.7 
Income tax                                                                  
 recovery                   -         -            -       3.2          3.2 
----------------------------------------------------------------------------
Net Earnings              7.4       1.5         10.8      21.2         40.9 
----------------------------------------------------------------------------
For the three                           Construction                        
 months ended          Energy Specialty     Products                  Total 
 June 30, 2014(1)    Services Chemicals Distribution Corporate Consolidated 
----------------------------------------------------------------------------
Revenue                 518.4     168.0        209.0         -        895.4 
Cost of sales                                                               
 (includes                                                                  
 products &                                                                 
 services)             (426.2)   (114.8)      (158.4)        -       (699.4)
----------------------------------------------------------------------------
Gross Profit             92.2      53.2         50.6         -        196.0 
Expenses                                                                    
 Depreciation                                                               
  included in                                                               
  selling,                                                                  
  distribution                                                              
  and                                                                       
  administrative                                                            
  costs                  (9.5)        -         (0.5)        -        (10.0)
 Amortization of                                                            
  intangible                                                                
  assets                 (0.5)        -            -      (0.1)        (0.6)
 Selling,                                                                   
  distribution                                                              
  and                                                                       
  administrative                                                            
  costs                 (79.4)    (40.6)       (42.7)     (6.0)      (168.7)
 Finance expense         (0.8)     (0.2)        (0.2)    (12.1)       (13.3)
 Unrealized gains                                                           
  (losses) on                                                               
  derivative                                                                
  financial                                                                 
  instruments            (0.8)      0.7            -       5.6          5.5 
----------------------------------------------------------------------------
                        (91.0)    (40.1)       (43.4)    (12.6)      (187.1)
----------------------------------------------------------------------------
Net earnings                                                                
 (loss) before                                                              
 income taxes             1.2      13.1          7.2     (12.6)         8.9 
Income tax                                                                  
 expense                    -         -            -      (3.0)        (3.0)
----------------------------------------------------------------------------
Net Earnings                                                                
 (Loss)                   1.2      13.1          7.2     (15.6)         5.9 
----------------------------------------------------------------------------
(1) The three and six months ended June 30, 2014 have been revised to       
    include the impact of first and second quarter adjustments (refer to    
    Note 23 for details), as well as to include the reclassification of     
    previously disclosed discontinued operations into continuing operations.
                                                                            
For the six                             Construction                        
 months ended          Energy Specialty     Products                  Total 
 June 30, 2015       Services Chemicals Distribution Corporate Consolidated 
----------------------------------------------------------------------------
Revenue                 979.4     315.0        456.1         -      1,750.5 
Cost of sales                                                               
 (includes                                                                  
 products &                                                                 
 services)             (700.9)   (224.1)      (343.0)        -     (1,268.0)
----------------------------------------------------------------------------
Gross Profit            278.5      90.9        113.1         -        482.5 
Expenses                                                                    
 Depreciation                                                               
  included in                                                               
  selling,                                                                  
  distribution                                                              
  and                                                                       
  administrative                                                            
  costs                 (22.8)        -         (3.5)        -        (26.3)
 Amortization of                                                            
  intangible                                                                
  assets                 (3.1)        -            -      (0.3)        (3.4)
 Selling,                                                                   
  distribution                                                              
  and                                                                       
  administrative                                                            
  costs                (180.0)    (79.4)       (96.4)     (9.8)      (365.6)
 Finance expense         (1.3)     (0.4)        (0.4)    (28.8)       (30.9)
 Unrealized gains                                                           
  (losses) on                                                               
  derivative                                                                
  financial                                                                 
  instruments            23.3       2.1            -     (30.1)        (4.7)
----------------------------------------------------------------------------
                       (183.9)    (77.7)      (100.3)    (69.0)      (430.9)
----------------------------------------------------------------------------
Net earnings                                                                
 (loss) before                                                              
 income taxes            94.6      13.2         12.8     (69.0)        51.6 
Income tax                                                                  
 expense                    -         -            -     (20.5)       (20.5)
----------------------------------------------------------------------------
Net Earnings                                                                
 (Loss)                  94.6      13.2         12.8     (89.5)        31.1 
----------------------------------------------------------------------------
For the six                             Construction                        
 months ended          Energy Specialty     Products                  Total 
 June 30, 2014(1)    Services Chemicals Distribution Corporate Consolidated 
----------------------------------------------------------------------------
Revenue               1,457.9     325.0        394.8         -      2,177.7 
Cost of sales                                                               
 (includes                                                                  
 products &                                                                 
 services)           (1,177.0)   (217.8)      (296.7)        -     (1,691.5)
----------------------------------------------------------------------------
Gross Profit            280.9     107.2         98.1         -        486.2 
Expenses                                                                    
 Depreciation                                                               
  included in                                                               
  selling,                                                                  
  distribution                                                              
  and                                                                       
  administrative                                                            
  costs                 (19.3)        -         (2.1)        -        (21.4)
 Amortization of                                                            
  intangible                                                                
  assets                 (1.3)        -            -      (0.2)        (1.5)
 Selling,                                                                   
  distribution                                                              
  and                                                                       
  administrative                                                            
  costs                (187.8)    (76.9)       (85.7)    (10.8)      (361.2)
 Finance expense         (1.5)     (0.5)        (0.4)    (25.3)       (27.7)
 Unrealized gains                                                           
  (losses) on                                                               
  derivative                                                                
  financial                                                                 
  instruments            11.0       0.2            -      (9.8)         1.4 
----------------------------------------------------------------------------
                       (198.9)    (77.2)       (88.2)    (46.1)      (410.4)
----------------------------------------------------------------------------
Net earnings                                                                
 (loss) before                                                              
 income taxes            82.0      30.0          9.9     (46.1)        75.8 
Income tax                                                                  
 expense                    -         -            -     (19.8)       (19.8)
----------------------------------------------------------------------------
Net Earnings                                                                
 (Loss)                  82.0      30.0          9.9     (65.9)       (56.0)
----------------------------------------------------------------------------
(1) The three and six months ended June 30, 2014 have been revised to       
    include the impact of first and second quarter adjustments (refer to    
    Note 23 for details), as well as to include the reclassification of     
    previously disclosed discontinued operations into continuing operations.
                                                                            
Net Working Capital, Total Assets, Total Liabilities, and Purchase of       
 Property, Plant and Equipment                                              
----------------------------------------------------------------------------
                                         Construction                       
                        Energy Specialty     Products                  Total
                      Services Chemicals Distribution Corporate Consolidated
----------------------------------------------------------------------------
As at June 30,                                                              
 2015                                                                       
 Net working                                                                
  capital(1)              58.4      54.0        134.3       1.2        247.9
 Total assets            592.8     622.1        270.1     540.7      2,025.7
 Total                                                                      
  liabilities            227.5     143.8        113.9     968.2      1,453.4
----------------------------------------------------------------------------
As at December                                                              
 31, 2014                                                                   
 Net working                                                                
  capital (1)             88.9      56.4        128.9      (9.4)       264.8
 Total assets            685.8     637.1        246.2     545.8      2,114.9
 Total                                                                      
  liabilities            298.3     162.5        104.0     999.7      1,564.5
----------------------------------------------------------------------------
For the three                                                               
 months ended                                                               
 June 30, 2015                                                              
 Purchase of                                                                
  property, plant                                                           
  and equipment            3.7       9.2          4.6         -         17.5
----------------------------------------------------------------------------
For the three                                                               
 months ended                                                               
 June 30, 2014(2)                                                           
 Purchase of                                                                
  property, plant                                                           
  and equipment            8.3      15.6          1.4         -         25.3
----------------------------------------------------------------------------
For the six                                                                 
 months ended                                                               
 June 30, 2015                                                              
 Purchase of                                                                
  property, plant                                                           
  and equipment           10.8      15.0          5.5         -         31.3
----------------------------------------------------------------------------
For the six                                                                 
 months ended                                                               
 June 30, 2014(2)                                                           
 Purchase of                                                                
  property, plant                                                           
  and equipment           13.6      26.6          1.9         -         42.1
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(1) Net working capital reflects amounts as at the period end and is        
    comprised of trade and other receivables, prepaid expenses and          
    inventories less trade and other payables and deferred revenue.         
(2) The three and six months ended June 30, 2014 have been revised to       
    include the reclassification of previously disclosed discontinued       
    operations into continuing operations.                                  

22. Geographical Information


                                               United                  Total
                                     Canada    States   Other   Consolidated
----------------------------------------------------------------------------
Revenues for the three months                                               
 ended June 30, 2015                  231.8     484.1    28.0          743.9
Revenues for the six months ended                                           
 June 30, 2015                        593.9   1,099.1    57.5        1,750.5
Property, plant and equipment as                                            
 at June 30, 2015                     472.5     432.6    47.7          952.8
Intangible assets as at June 30,                                            
 2015                                  13.8       7.0       -           20.8
Goodwill as at June 30, 2015          188.2       7.2       -          195.4
Total assets as at June 30, 2015    1,285.9     681.1    58.7        2,025.7
----------------------------------------------------------------------------
Revenues for the three months                                               
 ended June 30, 2014(1)               313.5     550.0    31.9          895.4
Revenues for the six months ended                                           
 June 30, 2014(1)                     871.4   1,260.5    45.8        2,177.7
Property, plant and equipment as                                            
 at December 31, 2014                 477.2     409.1    45.9          932.2
Intangible assets as at December                                            
 31, 2014                              15.0       3.7       -           18.7
Goodwill as at December 31, 2014      188.2       6.0       -          194.2
Total assets as at December 31,                                             
 2014                               1,382.1     676.6    56.2        2,114.9
----------------------------------------------------------------------------
(1) The three and six months ended June 30, 2014 have been revised to       
    include the impact of first and second quarter adjustments (refer to    
    Note 23 for details), as well as to include the reclassification of     
    previously disclosed discontinued operations into continuing operations.

23. Prior Year Adjustment Details

In Q3 2014 Superior recognized a total of $10.2 million in adjustments to net (loss) earnings related to its supply portfolio management business and its U.S. refined fuels business, of which $9.5 million were recognized in Q1 2014 and $0.7 million in Q2 2014. The adjustment in the supply portfolio management business was due to the over-accrual of freight charges during the fourth quarter of 2013 and throughout the first quarter of 2014. Recognizing this adjustment in 2014 increased Superior's 2014 first quarter financial results by $17.3 million as prior-period results were previously understated. The adjustment in the U.S. refined fuels business was due to inaccurate inventory costing in prior periods as a result of not appropriately recognizing book to physical inventory adjustments. Recognizing this adjustment in 2014 reduced Superior's 2014 full year financial results by $7.8 million as prior-period results were previously overstated.

Contacts:
Superior Plus Corp.
Wayne Bingham
Executive Vice-President and Chief Financial Officer
(403) 218-2951
(403) 218-2973 (FAX)
wbingham@superiorplus.com

Superior Plus Corp.
Jay Bachman
Vice-President, Investor Relations and Treasurer
(403) 218-2957 or Toll Free: 1-866-490-PLUS (7587)
(403) 218-2973 (FAX)
jbachman@superiorplus.com
www.superiorplus.com

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