Delta US refinery posts Q1 loss, Bakken crude expected in Q2

23 April 2013 21:42  [Source: ICIS news]

HOUSTON (ICIS)--US Delta Airlines’s Trainer refinery in Pennsylvania posted a loss in Q1, but profits are still projected for Q2, the company said on Tuesday.

“For the March quarter, operations at the Trainer refinery produced a $22m [€17m] loss, driven by supply disruptions related to Superstorm Sandy and a short-term outage in a gasoline production unit, which slowed production during the quarter,” Delta’s CFO Paul Jacobson said during the company’s Q1 earnings call.

The company previously said it expected the 185,000 bbl/day refinery to break even in Q1.

However, Jacobson said that the company’s fuel expense for the March quarter was $78m lower year-on-year, mainly from lower fuel prices and a drop in consumption.

In Q2 the company expects a modest profit at the refinery, which is when it will begin receiving cheaper Bakken crude oil for processing, which is priced lower than Brent crude.

Jacobson said the Bakken crude will meet roughly 10% of the refinery’s crude needs.

“Long term, we’re looking to settle out somewhere in the 75,000-100,000 bbl/day to build that delivery stream,” he said.

($1 = €0.77)

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By: Anna Matherne

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