Where is Jonny Juan? I've got some more quotes from today's conference call concerning upcoming fuel prices and how they might affect DL. Redflyer might be interested too. These quotes came from transcripts via Seeking Alpha.
RA answering a question:
"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.
At current crude prices, we?ll have approximately $100 million of hedge losses in the December quarter while our 2015 hedge book is near breakeven with a solid amount of protection at current price levels. Even with these hedge losses, we?ve participated in 80% of the price declines since late June. With the expected December quarter losses, our hedges reduced our overall fuel costs by roughly $160 million for 2014."
Another question for RA about lower oil prices:
"Let me just answer it generally. We can?t speak on behalf of the industry, we can only speak on behalf of Delta and that?s all we will speak on behalf of. But when you think about where fuel prices are today versus where they were just a few weeks ago, it?s in excess of a $1 billion of cost of goods sold improvement. So overall the fuel price reductions we?ve seen in the marketplace are a huge opportunity going forward."
And a question for the CFO, Paul Jacobson, about the profitability of the refinery, whether the profit was for the year or the Quarter:
"Hi, Linda, this is Paul Jacobson. We, that was guidance for the fourth quarter, so we produced a $19 million profit in the third quarter and we anticipate approximately a $20 million profit for the fourth quarter, the team up there is doing a fabulous job of running the plant and they?re keeping it up and operational."
Thanks Juany and Red. Have a great night!
Btw, the profit sharing will be at least double what it was last year, which means 2 months pay. (Part of that, about 1/3, was already advanced to employees earlier this month)
Bye Bye---General Lee