Downtime in June and July were related primarily to a hydrogen outage as well as for heat exchange repairs. The first unit of our feed pre-treatment system upgrading wasn’t started and has been operating as expected delivery of the second and third units have been delayed one month until October with installation and commissioning to begin in November.
For the three months ended June 30, 2012, Dynamic Fuels had an operating loss of $1 per gallon and operating cash loss of $0.72 per gallon on a produced 6.3 million gallons and sold 4.7 million gallons. This compares to three months ended March 31, 2012, where Dynamic Fuels had a net operating loss of $0.02 a gallon and a positive operating cash margin of $0.11 per gallon.
Dynamic Fuels’ financial performance for the quarter ended June 30 reflects down time of approximately 55 days due to our plan turnaround in April and the unplanned hydrogen containment in May.
Production averaged approximately 85% of design capacity during the operating days in the quarter ended June 30. For the quarter ended June 2012, diesel product delivery costs of discounts averaged $0.09 per gallon versus $0.14 per gallon in the first quarter of 2012. Net back diesel prices $4.89 compared to OPIS Gulf Coast SME of $4.45 and OPIS full RIN value of $4.98 during the quarter.We defined full RIN value as US Gulf Coast ULSD price plus 1.7 times RIN price. Fleet sales were 75% and 26% of the quarter ended June 30 and March 31 respectively. Average blended revenue per gallon in the quarter ended June 30, 2012 was $5.13 a gallon compared to $5.23 a gallon in the quarter ended March 31, 2012. Read the rest of this transcript for free on seekingalpha.com
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