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For the six months ended June 30, 2012, the company reported operating income of $8 million resulting from total revenues of $12.1 million and operating expenses of $4.1 million. Operating income include recognition of $6 million of unearned revenue due to the expiration of GTL license executed in 1997.Net income for the six months ended June 30th, was $5 million which included a $2.9 million loss related to Dynamic Fuels operations for their six months ended March 31, 2012. As a result of this settlement on June 27, 2012 Syntroleum recognized $3.7 million in deferred revenue and a corresponding deferred expense of $1.45 million. We report Dynamic Fuels using the equity method of accounting. Income or losses under this method are reported below operating income as income or loss in equity of Dynamic Fuels. As reported in our 10-Q for the six months ended March 31, 2012, Dynamic Fuels had revenues of $100.3 million, operating and general and administrative expenses of $102.1 million and other expense of $1.1 million resulting in a net loss of $2.9 million of which we report 50% in our financials. During this time period, 19.9 million gallons of renewable fuels were sold and 20.1 million gallons were produced. As of June 30, 2012 Syntroleum’s cash balance was $18.3 million. Now I’ll turn the call over to Gary Roth. Gary Roth Thank you, Karen. Dynamic Fuels produced 4.6 million gallons of renewable fuels during the month of July or 74% of capacity which is the highest production month in 2012 and the third highest since the Geismar plant began commercial operation in October 2010. Together with the 4 million gallons produced during June, this represents the second time that Dynamic Fuels plant has produced 4 million or greater in consecutive months. The Geismar plant continues to experience improved reliability with hydrogen compressor and solvent recycle pump which were available at 90% and 84% respectively during the quarter ended June 30, 2012 and were available 100% and 92% during July 2012. This compares to 97% hydrogen compressor and 77% solvent recycle pump availability for the three months ended March 31st.
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