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Tuesday, July 17, 2007 11:05:11 PM
Is that earnings USSE/SSTP gets from the sale of one gallon of OD-66. That seems rather large when USSE is only providing 1-2% of the contents to the gallon of fuel. That leaves a fairly small portion for the guy doing all the production in his facility, these are joint ventures after all. I would be surprised if there is a $1.20 in profit total from a gallon of OD-66. Profit for oil companies on a gallon of diesel or gas is in the range of pennies per gallon. (Our Government makes the most per gallon of gas sold, despite calling Big Oil Thieves)
Who gets That $1.20? USSE? SSTP? 90/10, 50/50?
Is there any exaggeration on this number? Is it all profit, or really just revenue. Not that I am complaining on revenue, god knows we have needed it for 9 months.
Thoughts or insider answers are genuinely welcome.
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