Replies to post #151489 on Plastic2Oil Inc (PTOI)

[Artiztic1]

I said "margins" not profits. Buying fuel to blend is a cost isn't it? Maybe they will lump that in a different column you know the one with the MRF lease.


Negative, he said purchase "fuel" to blend not additives.I wonder what the ratio is 99 parts purchased fuel and 1 part P2O....who knows? That's going to kill the margins.

Why the need to buy fuel, something doesn't add up?




LOL, P2O profit is completely unaffected by selling additional non-P2O fuel.

[NewMoney]

If I had to guess why this concept is so hard to grasp, I would say it was assumed we would be paying
MORE than the going rate for the blending fuel. Probably in the neighborhood of 300% more.

Too funny.

Also, if I understand this right we are only blending in 3rd party
fuel to meet a volume requirement and as more output capacity comes
on line we will phase out the 3rd party fuel.

Is that right? I just got up so I may need to read a bit more into that.


After my coffee.

[Justice37]

I get the impression that some would have JBI just blend P2O produced fuel and sell it to XTR. Doing that would lower profits, buy gasoline, blend it, sell it for a profit, that's what blending facilities do, I see no reason to take those profits off the table. It's similar to the recycling facility that some say costs the company. They sell other solid waste material for profit such as cardboard and as of last quarter were far exceeding the cost of the lease for the facility. I expect revenue from the recycling facility to increase this quarter to the point where the facility is profitable on it's own. As far as the blending facility, as P2O production increases the need for 3rd party fuels will decrease and profits will become greater, hard time seeing this as a bad thing.