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Blue Dolphin (BDCO) Q2 Earnings Decline, Revenues Rise Y/Y
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Blue Dolphin Energy Company (BDCO - Free Report) faced challenges in second-quarter 2024, witnessing sharp year-over-year declines in its financial results. The company posted a wider-than-expected loss, led by unfavorable refining margins, decreased production volumes and rising input costs at its Nixon refinery.
Despite a modest increase in total revenues, Blue Dolphin's profitability took a significant hit, reflecting operational difficulties and increased expenses that weighed on its bottom line. This quarter's results underscore the significant headwinds BDCO is facing in a difficult operating environment.
Blue Dolphin Energy Co. Price, Consensus and EPS Surprise
Blue Dolphin reported a second-quarter 2024 loss per share of 43 cents, wider than a loss of 10 cents in the year-ago quarter.
Total revenues from operations were $69.7 million, a modest increase from $68.9 million in the year-ago quarter.
Weak quarterly earnings resulted primarily from unfavorable refining margins and decreased throughput and production volumes at its Nixon refinery. Rising input costs also affected the quarterly performance.
Segmental Performance
The company has two reportable business segments:
Refinery operations derive revenues from refined product sales. The segment accounted for $68.5 million of total revenues on a segment basis, reflecting only a marginal improvement from $67.3 million a year ago.
The tolling and terminaling segment derives revenue from storage tank rental fees, ancillary services fees (such as for in-tank blending), and tolling and reservation fees for the use of the naphtha stabilizer at the Nixon refinery. The segment, however, saw a substantial decline, with revenues dropping to $1.1 million from $1.6 million in the year-ago quarter, exacerbating the overall profit decline. This dip is reflective of reduced demand and capacity utilization issues.
Key Business Metrics
For second-quarter 2024, Blue Dolphin posted a net loss of $6.4 million compared with a net loss of $1.6 million in the prior-year period. This marks a deterioration in profitability primarily due to unfavorable refining margins, and decreased throughput and production volumes at its Nixon refinery.
As a result, the company reported a gross deficit of $4.1 million for second-quarter 2024, a sharp decline from a gross profit of $1.9 million in second-quarter 2023. This dip in profitability is attributed to less favorable refining margins due to lower refinery throughput and production volumes.
The cumulative impacts of higher costs across the board resulted in an operating loss of $6.6 million, a drastic fall from the $86,000 operating income recorded in the prior-year period.
Costs
The refining segment struggled as the gross margin contracted due to rising input costs. Specifically, the cost of crude oil, fuel use, and chemicals rose to $65 million from $63.1 million in the prior-year period. This increase was compounded by a notable rise in other conversion costs, which jumped to $8.7 million from $3.8 million in second-quarter 2023.
Operational costs also increased significantly, with general and administrative expenses rising to $1.5 million from $0.9 million in second-quarter 2023. Depreciation and amortization costs were stable at $0.7 million in the second quarter.
Cash & Debt
The balance sheet reflected challenges in liquidity, with cash and cash equivalents falling dramatically to $98,000 from $18.7 million at the end of 2023. This decline highlights the strain on the company's cash flow, further evidenced by an increase in accounts payable and accrued expenses, which rose to $7.4 million and $5.7 million, respectively.
BDCO's debt situation is also precarious, with $15.3 million in current long-term debt, although this decreased from $39.4 million at the end of 2023 due to some debt reclassification to long-term liabilities.
Other Developments
In second-quarter 2024, Blue Dolphin completed a 13-day planned maintenance turnaround at the Nixon facility in May. Additionally, the company continued to enhance operational efficiency by upgrading the terminal management software and installing an additional Lease Automatic Custody Transfer unit to increase plant reliability and crude charge capacity.
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Blue Dolphin (BDCO) Q2 Earnings Decline, Revenues Rise Y/Y
Blue Dolphin Energy Company (BDCO - Free Report) faced challenges in second-quarter 2024, witnessing sharp year-over-year declines in its financial results. The company posted a wider-than-expected loss, led by unfavorable refining margins, decreased production volumes and rising input costs at its Nixon refinery.
Despite a modest increase in total revenues, Blue Dolphin's profitability took a significant hit, reflecting operational difficulties and increased expenses that weighed on its bottom line. This quarter's results underscore the significant headwinds BDCO is facing in a difficult operating environment.
Blue Dolphin Energy Co. Price, Consensus and EPS Surprise
Blue Dolphin Energy Co. price-consensus-eps-surprise-chart | Blue Dolphin Energy Co. Quote
Q2 Results
Blue Dolphin reported a second-quarter 2024 loss per share of 43 cents, wider than a loss of 10 cents in the year-ago quarter.
Total revenues from operations were $69.7 million, a modest increase from $68.9 million in the year-ago quarter.
Weak quarterly earnings resulted primarily from unfavorable refining margins and decreased throughput and production volumes at its Nixon refinery. Rising input costs also affected the quarterly performance.
Segmental Performance
The company has two reportable business segments:
Refinery operations derive revenues from refined product sales. The segment accounted for $68.5 million of total revenues on a segment basis, reflecting only a marginal improvement from $67.3 million a year ago.
The tolling and terminaling segment derives revenue from storage tank rental fees, ancillary services fees (such as for in-tank blending), and tolling and reservation fees for the use of the naphtha stabilizer at the Nixon refinery. The segment, however, saw a substantial decline, with revenues dropping to $1.1 million from $1.6 million in the year-ago quarter, exacerbating the overall profit decline. This dip is reflective of reduced demand and capacity utilization issues.
Key Business Metrics
For second-quarter 2024, Blue Dolphin posted a net loss of $6.4 million compared with a net loss of $1.6 million in the prior-year period. This marks a deterioration in profitability primarily due to unfavorable refining margins, and decreased throughput and production volumes at its Nixon refinery.
As a result, the company reported a gross deficit of $4.1 million for second-quarter 2024, a sharp decline from a gross profit of $1.9 million in second-quarter 2023. This dip in profitability is attributed to less favorable refining margins due to lower refinery throughput and production volumes.
The cumulative impacts of higher costs across the board resulted in an operating loss of $6.6 million, a drastic fall from the $86,000 operating income recorded in the prior-year period.
Costs
The refining segment struggled as the gross margin contracted due to rising input costs. Specifically, the cost of crude oil, fuel use, and chemicals rose to $65 million from $63.1 million in the prior-year period. This increase was compounded by a notable rise in other conversion costs, which jumped to $8.7 million from $3.8 million in second-quarter 2023.
Operational costs also increased significantly, with general and administrative expenses rising to $1.5 million from $0.9 million in second-quarter 2023. Depreciation and amortization costs were stable at $0.7 million in the second quarter.
Cash & Debt
The balance sheet reflected challenges in liquidity, with cash and cash equivalents falling dramatically to $98,000 from $18.7 million at the end of 2023. This decline highlights the strain on the company's cash flow, further evidenced by an increase in accounts payable and accrued expenses, which rose to $7.4 million and $5.7 million, respectively.
BDCO's debt situation is also precarious, with $15.3 million in current long-term debt, although this decreased from $39.4 million at the end of 2023 due to some debt reclassification to long-term liabilities.
Other Developments
In second-quarter 2024, Blue Dolphin completed a 13-day planned maintenance turnaround at the Nixon facility in May. Additionally, the company continued to enhance operational efficiency by upgrading the terminal management software and installing an additional Lease Automatic Custody Transfer unit to increase plant reliability and crude charge capacity.