Income or losses under the equity method are reported below operating income as income or loss in equity of Dynamic Fuels, per Generally Accepted Accounting Principles, we do not report gross revenues associated from Dynamic Fuels, because the entity is not consolidated. We will only report our share of the total net income or loss.As reported in our 10-K, Dynamic Fuels had revenues of $127.1 million, operating expenses and general administrative expenses of $153.9 million and other expense of $2.5 million, resulting in a net loss of $29.3 million for the year ended September 30, of which we report 50% in our Syntroleum financials. During this time 25.5 million gallons of renewable fuels were sold and 26 million gallons were produced. For the 12 months ended December 31, 2011, Dynamic Fuels produced 33.5 million gallon. As of December 31, 2011, Syntroleum cash balance was $22.6 million. We have not provided any additional working capital fund to Dynamic Fuels, since November of 2011. Now, I'll turn the call over to Gary Roth. Gary Roth Thank you, Karen. Effective January 1, 2012, Dynamic Fuels restructured its renewable diesel sales contract efforts with its agreements with Mansfield Oil Company. As a result, Dynamic Fuels achieved 100% of full RIN value diesel pricing in January of 2012 as compared to 88% of full RIN value pricing for the 12 months ended December 2011. We define full RIN value as ULSD Gulf Coast plus subsidy if any, plus 1.7 times RIN price. And Dynamic Fuels sold its fuel on a full RIN value basis for calendar year 2011 and would have recognized an operating loss of $2.7 million versus an operating loss of $24 million. During calendar year 2011, Dynamic Fuels ran at an average uptime of 47% with operating cost of $1.65 per gallon. Assuming average uptime of 75%, total RIN value diesel pricing and operating cost of $1 per gallon, operating income would have been $33 million in 2011.
Effective January 1, 2012, Dynamic Fuels entered into an 18 months agreement with Mansfield Oil Company, the largest fuel supply chain manager in the United States. The arrangement allows Dynamic Fuels to nominate up to 100% of Geismar diesel production and Mansfield is required to take the nominated volumes at posted ULSD and RIN prices less than industry standard fee.In addition, Dynamic Fuels and Mansfield will market renewable diesel directly to fleet customers. Mansfield has a supply force of approximately 50 people, who call on national fleets, railroad, transit authorities, and other state and local entities. In addition to sales support, Mansfield supplies logistic and back-office operations for sales to all 50 states. Our arrangement with Mansfield provides Dynamic Fuels the flexibility to sell to Mansfield or direct to the customer. As an example of the corporation between Mansfield and Dynamic Fuels, we announced the first fleet relationship with Norfolk Southern on February 14. Dynamic Fuels is supplying Norfolk Southern already in Mississippi rail yard with approximately 750,000 gallons per month of renewable diesels since early January. As stated by Norfolk Southern and I quote," Our locomotive engines are completely compatible with the pure renewable diesel provided by Dynamic Fuels and Mansfield." The Norfolk Southern transaction is a perfect example of customers using dropped and renewable diesel fuel while allowing them to achieve their sustainability objectives about sacrificing performance. Dynamic Fuels has completed production of 450,000 gallons of middle distillate for the U.S. Navy. Dynamic Fuels and Solazyme competitively bid and were awarded this contract in November, 2011. Dynamic Fuels shift and invoice to 121,000 gallons in marine diesel from the Geismar plant to Port Orchard, Washington in February. Read the rest of this transcript for free on seekingalpha.com