In the last conference call (Q3) the CFO stated about a $20 million profit for the year, even with lower oil. It just turns the oil into gas (and other products like hearing oil, etc). You know that, right? The overall cost of the refinery was about what one new 777 costs. DL is slated to make $4.5 billion this year.
From the Seeking Alpha summary of the DL Q3 conference call: quoting the CFO:
"The refinery made a $19 million profit for the quarter which lowered our fuel price by $0.02 per gallon. The refinery?s profit represents a $16 million improvement over the same period last year. A key driver of the profitability was our domestic crude initiative as we processed 100,000 barrels per day of domestic crude during the quarter. We are on-pace to achieve our goal of averaging 70,000 barrels per day for the full year, which should increase to 100,000 barrels per day in 2015. For the December quarter, we?re expecting to pay $2.69 to $2.74 per gallon for fuel including the refinery and hedge impacts. This includes the projected profit of the refinery of $20 million driven by widening crack spreads. The refinery team is running a great operation and continuous to generate meaningful year-over-year improvements there."
Bye Bye---General Lee