23 April 2014 16:42 [Source: ICIS news]
HOUSTON (ICIS)--Delta Air Lines expects its 185,000 bbl/day Trainer refinery in Pennsylvania to become profitable in the second quarter of 2014 after posting a $41m loss in the first quarter, a company executive said on Wednesday.
The refinery’s Q1 loss was linked to one of the major crude units at the refinery taken offline for scheduled modifications, which lowered throughput levels, the company said in its quarterly earnings conference call.
These modifications will yield a higher level of jet and diesel distillates going forward and improve the profitability of the refinery.
Furthermore, the refinery’s profits were negatively impacted by higher Renewable Identification Number (RIN) expenses.
The refinery upgrade work has been completed, and it produced 50% distillates after the upgrade in March, according to Paul Jacobson, Delta’s chief financial officer.
The company said it expects to see a second quarter jet fuel price of $2.97-3.02/gal.
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