Blue Dolphin Energy Company (BDPL) reported significant financial challenges in its 10-Q filing for the three and nine months ended September 30, 2024. The company experienced a net loss of $5.0 million, or $0.34 per share, for Q3 2024, a stark contrast to a net income of $7.1 million, or $0.47 per share, in Q3 2023. For the nine-month period, BDPL recorded a net loss of $4.7 million, or $0.32 per share, compared to a net income of $22.3 million, or $1.49 per share, in the same period last year.

Total revenue from operations for Q3 2024 was $82.1 million, down 19.9% from $102.6 million in Q3 2023. Revenue from refinery operations specifically decreased by 20.0% to $81.3 million, attributed to lower sales volumes and less favorable refining margins. The tolling and terminaling revenue also fell to $1.8 million, a decrease of 6.7% from the previous year. For the nine months ended September 30, 2024, total revenue was $242.8 million, down 15.7% from $288.1 million in 2023.

The company's operational costs reflected a decrease, with total costs of goods sold for Q3 2024 at $85.4 million, down 7.2% from $92.0 million in Q3 2023. However, inventory write-downs of $1.9 million were recorded due to lower of cost or net realizable value assessments.

BDPL's liquidity position weakened significantly, with cash and cash equivalents dropping to $683,000 as of September 30, 2024, from $18.7 million at the end of 2023. The company also reported a working capital improvement to $9.9 million, up from a deficit of $6.1 million at the end of 2023, primarily due to a reduction in current debt from $39.4 million to $13.9 million.

Strategically, management initiated a planned turnaround at the Nixon facility, which included upgrades to terminal management software and improvements for extreme weather protection. The company is also focusing on leveraging existing infrastructure to explore renewable energy opportunities. However, BDPL is currently in technical default under the NPS Term Loan Due 2031, which may adversely affect its operations and financial condition.

Overall, the financial results reflect a challenging environment for Blue Dolphin Energy, marked by declining revenues, increased losses, and significant liquidity constraints.