Replies to post #346 on Blue Dolphin Energy Company (BDCO)

[Enterprising Investor]

Blue Dolphin Reports First Quarter Loss of $2.15 Million.

Loss per share at $.21.

Operating Days: 91
Downtime: 0

Total refinery production
Throughput: 13,009
Production: 12,685

Capacity utilization rate
Throughput: 86.7% (78.7% year earlier)
Production: 84.6% (77.5% year earlier)

[Enterprising Investor]

Additional information

At 3/31/16, BDCO was in violation of debt service coverage ratio and current ratio covenants with Sovereign Bank. However, it is making regular scheduled monthly payments.

There was a major inventory buildup in the first quarter to $17.9 million, up from $7.8 million. Diesel and jet fuel inventory was increased intentionally compared to fulfill anticipated orders from a large new customer, seasonal jet fuel demand, and in anticipation of the opening of the Mexican diesel market to private companies. The buildup represented approximately 204,000 bbls (about 16 days worth of production) and resulted in lower refined petroleum product sales for the quarter.

LE has a dispute with GEL related to the Joint Marketing Agreement and Crude Supply Agreement. On 5/02/16, GEL filed a lawsuit in Texas state court in Harris County. On 5/13/16, LE filed a Demand for Arbitration with the American Arbitration Association to bring the dispute to resolution.