Delta’s oil refinery on track for US$100m full-year 2016 loss
Delta Air Lines’ Trainer, Pennsylvania, oil refinery is expected to incur an operating loss of about US$100m for the full-year 2016 after posting operating profits in both 2014 and 2015. The refinery, which Delta purchased in 2012, had a $45m operating loss in Q3 2016, reversed from an operating profit of $106m in the 2015 September quarter. The refinery’s Q3 revenue fell 23% year-over-year to $971m. Delta CFO Paul Jacobson said that the refinery’s Q3 loss was “driven by lower crack spreads”—the difference between crude oil prices and the actual price of jet fuel. Even as oil prices rise, with per barrel prices hitting a 2016 high of $54 earlier this week, Jacobson said crack spreads are remaining consistently narrow. For that reason, Delta is anticipating a $100m full-year operating loss by the facility. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2016-10-17/sky/delta2019s-oil-refinery-on-track-for-us-100m-full-year-2016-loss
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Delta’s oil refinery on track for US$100m full-year 2016 loss
Delta Air Lines’ Trainer, Pennsylvania, oil refinery is expected to incur an operating loss of about US$100m for the full-year 2016 after posting operating profits in both 2014 and 2015. The refinery, which Delta purchased in 2012, had a $45m operating loss in Q3 2016, reversed from an operating profit of $106m in the 2015 September quarter. The refinery’s Q3 revenue fell 23% year-over-year to $971m. Delta CFO Paul Jacobson said that the refinery’s Q3 loss was “driven by lower crack spreads”—the difference between crude oil prices and the actual price of jet fuel. Even as oil prices rise, with per barrel prices hitting a 2016 high of $54 earlier this week, Jacobson said crack spreads are remaining consistently narrow. For that reason, Delta is anticipating a $100m full-year operating loss by the facility. <br/>
