Blue Dolphin Energy Company reported a significant decline in financial performance for the fiscal year ending December 31, 2024, with a net loss of $8.6 million, or $0.58 per share, compared to a net income of $31.0 million, or $2.08 per share, in the previous year. Total revenue from operations decreased by 19.8% to $317.5 million, down from $396.0 million in 2023. This decline was attributed to less favorable refining margins and lower sales volumes, with the company experiencing a nearly 11% drop in sales volume and adverse market pricing conditions.
The company faced operational challenges, including increased downtime at its Nixon refinery, which was down for 27 days in 2024 compared to 12 days in 2023. This downtime was primarily due to planned maintenance turnarounds and adverse weather conditions. The total cost of goods sold decreased to $313.6 million from $353.9 million, reflecting lower sales volume and market pricing. Gross profit also fell sharply to $3.9 million from $42.1 million in the prior year, highlighting the impact of unfavorable commodity prices on profitability.
Strategically, Blue Dolphin has been working to improve its financial position by engaging with potential lenders to refinance and restructure its debt, which includes significant amounts in default. As of December 31, 2024, the company reported a working capital deficit of $19.1 million, an increase from $6.1 million the previous year. The company’s total liabilities rose to $68.9 million, with current liabilities increasing significantly due to bank and related-party debts. The company continues to rely on its affiliates for financial support, which raises concerns about liquidity and operational sustainability.
Looking ahead, Blue Dolphin's management expressed uncertainty regarding future operating margins and the overall economic environment, which includes inflation, interest rates, and geopolitical tensions. The company is focused on optimizing its existing asset base and improving operational efficiencies while exploring opportunities in renewable energy. However, management acknowledged that without successful execution of its business strategy, the company may need to consider asset sales, additional debt or equity financing, or even bankruptcy to address its financial challenges.
About BLUE DOLPHIN ENERGY CO
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