Blue Dolphin Energy Company (BDCO)

[Enterprising Investor]

BDCO would have been profitable minus the Final Arbitration Award

Net Losses – For the year ended December 31, 2017, we reported a net loss of $22,328,390, or a loss of $2.09 per share, compared to a net loss of $15,767,448, or a loss of $1.51 per share, for the year ended December 31, 2016. The $0.58 per share increase in net loss between the periods was the result of the Final Arbitration Award, which was partially offset by improved margins for refined petroleum products and increased sales volume. The amount expensed in the period related to the Final Arbitration Award was $24,338,628, which represented $2.28 per share. Excluding the Final Arbitration Award, we would have reported net income of $0.19 per share.