22 October 2013 22:26 [Source: ICIS news]
HOUSTON (ICIS)--The east coast refinery purchased in 2012 by Delta Air Lines posted its first quarterly profits in the third quarter, the company said on Tuesday.
The 185,000 bbl/day Trainer refinery in Pennsylvania, owned by Delta subsidiary Monroe Energy, made $3m (€2m) in profits in the third quarter after losing $22m in the first and $51m in the second quarters of this year.
“Importantly, the refinery's production has proven to be effective in keeping jet cracks in check, particularly in the New York Harbor,” said Delta’s CEO and Director Richard Anderson, during the company’s quarterly earnings conference call. “Our next step is to improve the refineries profitability through lower-cost domestic crude supply from the Bakken field, increased jet fuel output and operational initiatives to improve throughput and product mix.”
According to Anderson, the company’s fuel cost, which is an airline’s highest expense, fell by $81m on lower fuel prices and better fuel hedging, which is used by airlines to reduce exposure to volatile fuel costs.
The company said its fuel price was at $2.97/gal, which included a 6 cent/gal hedge gain.
In the fourth quarter, Delta’s CFO and Senior Vice President Paul Jacobson said it expects a fuel price of $3.03-3.08/gal, including the refinery and the hedge impact.
($1 = €0.73)
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