Delta to restart US refinery this week, projects 2Q profits

04 March 2013 19:37  [Source: ICIS news]

HOUSTON (ICIS)--US Delta Airlines’ Trainer refinery in Pennsylvania is expected to be at full capacity this week, with a 2Q profit between $75m-100m (€58m-77m), a company executive said on Monday.

The refinery was impacted by Hurricane Sandy and experienced some operational delays in Q4, but the start-up issues have been solved, Delta’s President Edward Bastian said during the JP Morgan Aviation, Transportation and Defense Conference.

According to Bastian, the 185,000 bbl/day refinery ran at only 75% capacity for the majority of Q1, but Delta still expects to break even on the facility in the quarter.

“So even at only a 75% utilisation rate, we’re still going to break even, which is very meaningful,” Bastian said. “And as we are now at full capacity, and as we look to the second quarter, we’re projecting a profit in the second quarter of somewhere between $75m and $100m just in the second quarter alone using the current market cracks.”

Furthermore, the refinery has begun to use cheaper sources of crude, including that of the Bakken shale play.

“We’ve been active in making arrangements to source Bakken crude at considerable savings from Brent. In fact, we had our first shipment just a couple of weeks ago at the plant, and the light sweet product, I’m pleased to say, ran very, very well,” Bastian said.

($1 = €0.77)

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By: Anna Matherne

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