Wed, May 15, 8:56 PM (305 days ago)
Blue Dolphin Energy Company’s Q1 2024 financial performance reflects a challenging operating environment. The company reported a net income of $6.6 million ($0.44 per share), a significant decrease from $16.8 million ($1.12 per share) in Q1 2023, primarily due to less favorable refining margins and lower throughput, production, and sales volumes. Total revenue from operations was $91.0 million, down from $116.7 million in Q1 2023. The cost of goods sold also decreased to $79.2 million from $96.2 million, resulting in a gross profit of $11.8 million, down from $20.5 million. Despite these challenges, Blue Dolphin improved its working capital to $0.3 million from a deficit of $6.1 million at the end of 2023. Current assets increased to $52.8 million, while current liabilities decreased to $52.5 million. However, the company still faces significant debt issues, with $40.6 million in current long-term debt, primarily due to defaults on loans from Veritex and GNCU. Management believes it has sufficient liquidity for the next year through cash flow from operations and working capital improvements. The company continues to explore additional funding and restructuring options. Operationally, Blue Dolphin is focused on optimizing its asset base, improving operational efficiencies, and seizing market opportunities, including potential renewable energy projects. However, uncertainties related to macroeconomic conditions, geopolitical tensions, and regulatory requirements pose ongoing risks.