Blue Dolphin reports improved 3Q15 results

Blue Dolphin Energy Company, an independent refiner and marketer of refined petroleum products in the Eagle Ford Shale, reported net income for 3Q15 of US$1.3 million, or income of US$0.12 per share, compared to US$0.8 million, or income of $0.08 per share, for 3Q14. Refinery operations adjusted earnings before interest, income taxes and depreciation (EBITDA), a non-GAAP financial measure, totaled US$3.8 million for 3Q15 compared to US$2.9 million for 3Q14. Total adjusted EBITDA was US$4.2 million compared to US$2.5 million for same comparative periods. Refinery operating income for 3Q15 totalled US$2.1 million compared to US$1.5 million for 3Q14.

Net income for the first nine months of 2015 was US$5.1 million, or income of US$0.49 per share, compared to net income of US$8.4 million, or income of US$0.81 per share, for the first nine months in 2014. Refinery operations adjusted EBITDA totaled US$15.5 million for the first nine months of 2015 compared to US$13.8 million for the first nine months of 2014. Total adjusted EBITDA totaled US$15.2 million compared to US$12.9 million for the same comparative periods. Refinery operating income for the first nine months of 2015 totalled US$10.0 million compared to US$10.7 million for the first nine months of 2014.

Refinery Operations

For 3Q15, the Nixon Facility processed 1 109 411 bbls, or 12 752 bpd, of crude oil and condensate compared to 849 402 bbls, or 10 890 bpd, of crude oil and condensate for 3Q14. For the same comparative periods, the Nixon Facility produced 1 084 246 bbls, or 12 463 bpd, of refined petroleum products compared to 831 771 bbls, or 10 664 bpd. The capacity utilisation rate for refinery throughput for the 3Q15 was 85.0% compared to 72.6% for 3Q14. The capacity utilisation rate for refinery production for 3Q15 was 83.1% compared to 71.1% for the third quarter of 2014. Total refinery throughput, total refinery production, and capacity utilisation rates increased as a result of: (i) less downtime in 3Q15 compared to the third quarter of 2014, (ii) debottlenecking efforts in 3Q15, and (iii) completion of refurbishment of key components of the naphtha stabiliser and depropanizer units late in 3Q15, all of which contributed to an increase in average refinery throughput for the Current Quarter.

Use of Non-GAAP Financial Measures

To supplement our actual results in accordance with generally accepted accounting principles (GAAP) for the applicable periods, Blue Dolphin also uses the non-GAAP financial measures noted above. These non-GAAP financial measures are reconciled to GAAP-based results below. These non-GAAP financial measures should not be considered an alternative for GAAP results. The adjustments are provided to enhance an overall understanding of Blue Dolphin's financial performance for the applicable periods and are indicators management believes are relevant and useful. These performance measures may differ from similar calculations used by other companies within the petroleum industry, thereby limiting their usefulness as a comparative measure.

Below are the definitions of non-GAAP performance measures used by management within this press release:

EBITDA reflects earnings before: (i) interest income (expense), (ii) income taxes, and (iii) depreciation and amortization. Refinery operations EBITDA reflects EBITDA for the company’s refinery operations business segment. Total EBITDA reflects EBITDA for the company’s refinery operations and pipeline transportation business segments, as well as corporate and other.

Adjusted EBITDA reflects EBITDA plus the Joint Marketing Agreement Profit Share (the JMA Profit Share). The JMA Profit Share represents the GEL TEX Marketing, LLC (GEL) Profit Share plus the GEL Performance Fee for the period pursuant to the Joint Marketing Agreement. Refinery operations adjusted EBITDA reflects adjusted EBITDA for the company’s refinery operations business segment. Total adjusted EBITDA reflects adjusted EBITDA for the company’s refinery operations and pipeline transportation business segments, as well as corporate and other.

Refinery operating income reflects refined petroleum product sales less direct operating costs (including cost of refined products sold and refinery operating expenses) and the JMA Profit Share, which is an indirect operating expense.

Edited from press release by Angharad Lock

Read the article online at: https://www.hydrocarbonengineering.com/refining/24112015/blue-dolphin-reports-improved-3q15-results-1798/