Delta refinery losses due to Superstorm Sandy

Victoria
By Victoria March 1, 2013 11:31

Delta refinery losses due to Superstorm Sandy

The Trainer refinery acquired by Delta in June 2012 recorded a $63 million net loss for the fourth quarter of 2012 due to the effects of Superstory Sandy. Although fuel production increased at the refinery, the storm “negatively impacted the refinery start up, slowing production and lowering efficiency levels”, says the airline in its annual report.
The airline sates that it has increased the production of jet-fuel at the facility, which is capable of refining 185,000 barrels of crude oil per day, and is exchanging a significant portion of the non-jet fuel products with Phillips 66 under a multi-year agreement for more jet fuel.
“Substantially all of the remaining production of non-jet fuel products is being sold to BP under a long-term buy/sell agreement effectively exchanging those non-jet fuel products for jet fuel. Our agreement with Phillips 66 requires us to deliver specified quantities of non-jet fuel products and they are required to deliver jet fuel to us. If we or Phillips 66 do not have the specified quantity and type of product available, the delivering party is required to procure any such shortage to fulfill its obligation under the agreement. Substantially all of the refinery’s expected production of non-jet fuel products is included in these agreements.”

Victoria
By Victoria March 1, 2013 11:31
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